Use Cases

Any decision where being wrong is expensive, and the reasoning has to survive scrutiny.

The doctrine is domain-agnostic by design. It has been shaped against financial institutions first, because their decisions are audited the hardest — but the same seven stages apply anywhere capital, regulation, or reputation are on the line.

Fit

The pattern that recurs

Every use case below shares the same shape: a material amount of capital, a decision-maker who will be asked to justify it later, and an AI or automated system somewhere in the reasoning chain that needs its own evidence trail, not just the human’s.

Where it applies

Representative decision types

Technology

AI investment decisions

Build vs. buy vs. partner for an AI system with a material budget and operational blast radius.

Banking

Credit and underwriting model changes

Adopting or retraining a model that changes who gets approved, and at what price.

Corporate

M&A and divestiture

Valuation, synergy claims, and integration risk under a fixed close deadline.

Finance

Capital allocation & budget reallocation

Reassigning material budget across business units with competing sponsors.

Treasury

Treasury & liquidity decisions

Hedging, funding mix, and counterparty exposure decisions with model-driven inputs.

Procurement

Vendor and platform selection

Multi-year commitments to a vendor whose model or algorithm you cannot fully audit.

Sector focus

Where the doctrine is furthest along

Banking

Credit decisioning, fraud models, and capital models under direct supervisory scrutiny.

Insurance

Underwriting and claims models where explainability is a regulatory requirement, not a preference.

Asset management

AI-assisted allocation decisions that fiduciaries must be able to justify to their own clients.

Bring your decision to the doctrine.

If it involves material capital and a defensible-reasoning requirement, it likely fits.