CMMC Level 2 required for CUI — AI processing CUI without audit = certification loss
—CMMC 2.0 + FAR AI clause rollout
Regulatory exposure — commonly overlooked:
Subcontractor uses AI on CUI — prime owns CMMC finding, sub owns contract termination. · CPRA ADM opt-out requires proof of what automated system decided — receipt is opt-out infrastructure.
TAM / Exposure
300K+ defense industrial base companies
Insurance lines
Defense E&O · Cyber · Fidelity
Exhibit authority
California CPRA ADM Pack — CMMC AI Supply Chain Pack
Global leaders
DoD · Lockheed · Raytheon · CMMC AB · NIST · CPPA · CA AG · Silicon Valley insurers
FAR 52.204-21
Basic safeguarding — AI agent on CUI network triggers enhanced controls.
Supply chain
AI vendor on CMMC boundary — flow-down requirements to receipt layer.
False Claims Act
Certifying CMMC compliance without AI controls = treble damages.
[California] Trial bar capital
California plaintiffs bar most aggressive on AI — independent verify changes settlement calculus.
[California] Tech HQ effect
Every global platform's AI policy tested first in California courts.
[Text / Chat] Modality hook
Baseline — all frameworks apply to text decisions.
7 mandate layers (live)
Regulatory ClockCountdown to operative regulatory deadline — NAIC adoption, GSE mandate, EU transposition.Open →
Domain ClassifierIndustry-specific SAFE/CRISIS/VIOLATION with regulatory framework mapping.Open →
Exhibit / Filing PackRegulator-ready external validation — NAIC Exhibit D, Fannie QC, EU FRIA, FDA Part 11.Open →
Mandate RegistryEnroll deployers/insureds under vertical-specific governance mandate.Open →