AI Diligence // industry coverage # Industry-specific failure modes. Cross-cutting business-model patterns. We read every target twice. Once against the failure modes that actually turn up in its industry — payer rules, inference margins, model governance, plant fallbacks. And once against the business-model patterns that cut straight across all seven sectors — because AI risk follows business models, not industry lines. The specialist knows the symptom. We know the symptom, the pattern, and where the fix has already been built. Find your sector ↓ See the pattern library ↓ 01 // Where we work ## Seven sectors. Pick yours. Each read starts from the failure modes that actually turn up in that industry — not a generic AI checklist with your logo on it. Sector ### Healthcare services PHI in a training set is an indemnity, not a footnote Top failure mode Coding automation drifting against payer rules Open the sector read → Sector ### Software / SaaS Inference cost per seat turns an 80% margin into 60% Top failure mode “AI-native” that is a wrapper on someone else's model Open the sector read → Sector ### Insurance & financial services An ungoverned pricing model is an exam finding Top failure mode No adverse-action explanation path Open the sector read → Sector ### Industrials & distribution A model in the critical path with no fallback is downtime Top failure mode Forecasting AI setting inventory with no override Open the sector read → Sector ### Business & professional services AI breaks the link between headcount and revenue Top failure mode Fees priced on hours AI completes in minutes Open the sector read → Sector ### AI infrastructure & specialty industrials How much of this multiple is AI narrative? Top failure mode Revenue concentrated in two hyperscalers Open the sector read → Sector ### Payments & fintech A fraud model drifting 40bps is an EBITDA event Top failure mode Reserves modeled on pre-AI loss patterns Open the sector read → 02 // The pattern library ## The same failure, wearing different clothes. Seven business-model patterns account for most of the AI value destruction we find. Almost none of them belong to a single industry — which is precisely why a single-industry adviser keeps meeting them for the first time. 03 // The translation ## One pattern. Seven disguises. Take the most common pattern we find — a model sitting in the critical path with no fallback. It appears in all seven sectors, and in every one of them the operators call it something else. That's why it goes unscoped. Sector What it looks like on the ground What it actually costs Healthcare A prior-auth bot drifts denial rate climbs, quietly Software The inference provider has an outage SLA breach, then churn Insurance Claims automation stalls backlog, and a conduct question Industrials Predictive maintenance misses downtime — and a safety file Services The AI drafting tool fails delivery capacity, gone in a day AI infra The demand model is wrong capacity built for nobody Payments The fraud model drifts loss rate, straight to EBITDA Same pattern. Same fix. Seven different vocabularies — and seven sets of advisers who have each only seen one. 04 // The cross-industry dividend ## We solve it once. You get it already solved. Because the patterns repeat, the fixes travel. The failover harness we built for a distribution business is the one a payments platform needs — and the second build is always a fraction of the first. That is the compounding advantage of a partner who works across industries, and it is the one thing a sector specialist structurally cannot offer. Pattern recognition ### We've seen it before The first time a pattern appears in your sector, it's a crisis. It may be the fortieth time we've seen it — just wearing a different uniform. Transferable fixes ### The build is already done Remediation playbooks move between industries. You pay for the second deployment, not the first. Cross-portfolio synergy ### Assets that travel For funds holding assets across sectors, the eval harness in one company is the missing control in another. We map it. ## Deep in your sector. Fluent in all of them. Bring us the target. We'll read it with the failure modes of its own industry — and with the patterns we've already found in the other six. Book a scoping call →