Replit experienced an unexpected AI-induced outage, highlighting the challenges regulated industries face in balancing AI benefits with strict compliance and data security requirements. These sectors, including finance, telecommunications, and healthcare, must manage AI's potential while maintaining data observability and control within their environments. The text discusses the need for on-premise AI observability solutions to meet regulatory demands, as cloud-hosted options often fall short in providing the necessary data security and access controls. Galileo's on-premise solution addresses these needs by offering a customizable, secure architecture that ensures sensitive data remains within legal boundaries, leveraging tools like small language models and comprehensive metrics for real-time monitoring and protection. Their deployment model, designed for regulated clients, includes a user-facing layer, infrastructure layer, and observability layer, all aimed at ensuring operational excellence while adhering to compliance standards. By offering flexibility and end-to-end control, Galileo enables enterprises to harness AI's power without compromising security, as exemplified by their work with clients like John Deere and HP.