Compound AI System Reliability: A Failure Taxonomy and Resilience Pattern Catalog from 150 Production Incidents

arXiv:2610.02503v1 Announce Type: cross Abstract: Deploying compound AI systems reliably and safely requires understanding failure modes that emerge at component boundaries, not within individual models. Cascading errors propagate across component boundaries, silent quality degradation evades standard monitoring, and coordination failures yield incorrect collective behavior from individually correct parts. We analyze 150 production incident reports from open-source compound AI projects and anonymized enterprise deployments to construct a taxonomy of 23 failure modes organized into five categor

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