# kaal:claim:5095633-022

**Claim.** Centralizing annotation data inside a small number of vendor firms creates a standing risk of breach or misuse that can produce legal liability and loss of trust in AI technologies.

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

**Holds when.**

- data aggregated and held by centralized annotation vendors

**Source quote.**

> As data is centralized in these companies, there's always a risk of data breaches or misuse, which could lead to legal issues or loss of trust in AI technologies.

**From.** Wulf A. Kaal, *Artificial Intelligence The Final Frontier* (2025), 4.2. Practical Shortcomings, page 13

**Cite as.** Wulf A. Kaal, Artificial Intelligence The Final Frontier (2025). SSRN: https://ssrn.com/abstract=5095633

**Verify.** sha256 of source PDF `cbb484711f89bcefc9fc6a5730a1ed0a3f764d7999ad9b6f7d8ea05634c26c63` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Artificial%20Intelligence%20The%20Final%20Frontier.pdf

**Failure mode.** centralized data honeypot  (family: privacy-and-surveillance-risk)

**Topics.** decentralization, risk-and-incentives, reputation

**Keywords.** data-breach, centralization-risk, gdpr, trust

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