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Blog · AI in Practice

How Misses and False Alarms Affect Operations

Misses and false alarms have different costs, and the right operating point depends on which one your organisation can absorb.

4 of 10Method note

Overview

  • Write down both costs before tuning anything: a missed defect and an unnecessary site visit are rarely equal.
  • Lowering the threshold buys fewer misses at the price of more false alarms — there is no setting that improves both.
  • Alert volume has a second cost that is easy to miss: after a few weeks of noise, real alerts get ignored.
  • Track the operational outcome, not only the detection statistics.

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