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Glossary

Taxonomy Template

An industry-specific set of failure categories, business impact ratings, and evaluation criteria used to structure AI decision auditing for a particular regulated domain.

What It Means

A taxonomy template defines the evaluation framework for a specific industry. It includes three components: failure categories (what can go wrong — e.g., 'incorrect eligibility calculation' for government benefits, 'hallucinated legal citation' for legal compliance), business impact ratings (what's at stake — regulatory action, litigation, patient harm), and evidence sufficiency levels (whether documentation supports a determination). The taxonomy provides structural consistency across evaluations while allowing each industry to define the specific categories that matter for their domain.

Why It Matters

Without a structured taxonomy, AI decision auditing produces inconsistent, subjective assessments. One reviewer might call something a 'minor error' while another calls it a 'compliance violation.' The taxonomy standardizes evaluation so that verdicts are comparable, aggregatable, and actionable. It also enables pattern detection — when the same failure category appears repeatedly, you've found a systematic model issue worth fixing.

How Bookbag Helps

Bookbag provides pre-built taxonomy templates for 14 regulated industries, each with industry-specific failure categories, business impact ratings, and evidence sufficiency levels. Teams can customize these templates to match their specific regulatory environment and internal policies. The taxonomy feeds directly into the verdict structure, ensuring every evaluation produces structured, comparable data.

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