# kaal:claim:4796714-019

**Claim.** Mandatory AI use reporting fails as a transparency mechanism because it assumes accurate and complete disclosure, while regulated entities have incentives to underreport or misreport in order to avoid scrutiny and regulatory burdens.

**Type.** failure  **Support.** argued

**Holds when.**

- applies to self reporting mandates such as the White House AI reporting proposals
- holds where disclosure is unverified

**Source quote.**

> However, this approach assumes that entities will accurately and fully disclose their AI applications and potential issues. There may be incentives for underreporting or misreporting to avoid scrutiny or regulatory burdens, which could undermine the effectiveness of the regulations.

**From.** Wulf A. Kaal, *AI Governance* (2024), Challenges, page 30

**Cite as.** Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

**Verify.** sha256 of source PDF `59fa63bae179e8f9b6b8efbdf90cee28400276512a1b04f9f579a48641305c93` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20AI%20Governance.pdf

**Failure mode.** self reporting incentive failure  (family: disclosure-ineffectiveness)

**Topics.** disclosure, risk-and-incentives

**Keywords.** disclosure, self-reporting, transparency, incentive-design, regulatory-oversight

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.