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Institutional reliance on AI systems that exceeds the institution's ability to function without them. Cognitive dependence differs from tool dependence—it involves not just efficiency loss but capability loss, where humans have lost the ability to perform functions they once possessed.
The firm could operate without their spreadsheet software, just less efficiently. They cannot operate without their AI system—the staff who could do the analysis manually have left, the processes assume AI involvement, and no one remembers how it was done before.
Section 6.5: Irreversible Delegation