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How to ThinkIn the Age of AI
Principlev1PR-1021

Establish an error budget that defines acceptable…

Establish an error budget that defines acceptable unreliability as a resource to spend on experimentation rather than a failure to eliminate, because pursuing perfect reliability prevents the risk-taking required for growth.

Why This Is a Principle

Grounded in explore-exploit tradeoffs (Every moment spent exploring is a moment not spent…) and slack being necessary to absorb variation (Intentional underutilization (slack) is necessary…). The principle prescribes budgeting for unreliability to enable the exploration that drives improvement.