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AI Glossary · Governance & compliance

What is AI Incident?

AI Incident

An AI incident is an event in which the development, use or malfunction of an AI system directly or indirectly leads to real harm, such as injury, disruption of critical infrastructure, rights violations or damage to property, communities or the environment.

Also known as: AI incidents

· Updated · Chain of Thought

Enterprise AIAI Security

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The OECD separates two things that are easy to blur. An incident is harm that happened: a chatbot gives a customer dangerous advice that they follow, a hiring model screens out qualified applicants, an agent deletes production data. A hazard is an event that could plausibly lead to that harm but has not yet, such as discovering that a model can be tricked into leaking customer records before anyone exploits it.

Tracking incidents is how the field learns from failures, the way aviation learns from crash and near-miss reports. The OECD’s AI Incidents Monitor and the independent AI Incident Database both collect public reports. Under the EU AI Act, providers of high-risk AI systems must report serious incidents to authorities.

For a company, the practical question is whether it would notice and reconstruct an incident at all. That depends on an audit trail, AI observability and a named owner who decides what to do next. Editorially, an incident process is the operational counterpart of an AI impact assessment: one predicts harms, the other catches the ones that happen anyway.

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