Glossary

Human-in-the-loop (HITL) describes a hybrid approach where artificial intelligence systems operate under human supervision. Instead of fully autonomous automation, HITL ensures that people remain involved in validating, correcting, or guiding machine outputs, maintaining both accuracy and accountability.

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In finance, this principle is essential: automation must serve precision, compliance, and trust. At Phacet, every AI agent operates within a human-in-the-loop framework, meaning that users can review, validate, or reject results at any stage of the process. Each correction trains the system to perform better over time, creating a continuous feedback loop between human expertise and machine learning.

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For example, in invoice control or bank reconciliation workflows, the agent identifies anomalies or mismatches automatically. But the final decision, approving, flagging, or adjusting data, remains in the user’s hands. This ensures total auditability, full compliance with financial standards, and confidence in every automated action.

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The HITL model represents Phacet’s philosophy: AI that augments human intelligence, not replaces it. By combining speed and scale with expert oversight, finance teams can automate complex workflows while maintaining the transparency and control that modern organizations demand.