BFSI insights

Making LLMs Reliable When It Matters Most: A Five-Layer Architecture for High-Stakes Decisions

Published 10 Nov 2025 · arXiv · Alejandro R. Jadad
arXiv preview

Overview

The paper introduces a five-layer architecture designed to enhance the reliability of large language models (LLMs) in high-stakes decision-making contexts. It addresses the challenge of cognitive biases that affect both humans and AI, proposing a structured approach to maintain effective human-AI partnerships.

Key Insights

  • Five-Layer Architecture: A structured framework is proposed to maintain reliability in LLMs, addressing cognitive biases and ensuring defensible decisions.
  • Calibration Process: A seven-stage calibration sequence is necessary to sustain partnership states, preventing performance degradation and costly errors.
  • Cross-Model Validation: Systematic differences in performance across LLM architectures were observed, highlighting the need for tailored approaches.

BFSI Relevance

  • Why Relevant: Reliable AI systems are crucial for high-stakes decisions in BFSI sectors, where strategic decisions impact valuations and investments.
  • Primary Sector: Financial Services
  • Subsectors: Asset Management, Corporate Banking
  • Actionable Implications:
    • Implement structured AI frameworks to enhance decision reliability.
    • Monitor AI performance to prevent cognitive biases and errors.
    • Tailor AI systems to specific decision-making contexts.
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