Guardians of the State: An Air-Gapped AI Fortress for Consumer Data — Rachna Srivastava, DFPI
California's financial regulator DFPI is building an AI system for fraud detection with extreme security requirements.
Instead of software firewalls, they connected a fiber optic cable with receive-only capability—data cannot physically leave the system. They discovered their initial attempt collapsed because they treated the AI model as magic rather than a data pipeline; they solved this by having Kafka and Spark clean data before the model saw it. Now they route over 80 percent of work to small, efficient models instead of running one large model for everything, which tripled throughput.
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