1. Introduction

LLMs are, by construction, semantic compression machines. Their objective — to minimize token prediction loss — leads to the formation of high-dimensional vector spaces that encode latent structures of reality.

But this compression process, absent any direct ontological anchoring, introduces non-trivial risks:

Distortive compression, where internally coherent outputs diverge from empirical reality.

Probabilistic overconfidence, where the density of embeddings masquerades as epistemic certainty.

Simulated agency, where both the model and users are drawn into the illusion of intentionality.

These risks are not discussed enough in mainstream alignment discourse, yet they are central to understanding failure modes at scale.

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2. The Architecture of Ontological Risk

2.1. Distortive Compression

Every compression process discards information. In LLMs, this means constructing “coherence islands” — pockets of internal linguistic validity that are disconnected from the real world.

2.2. Probabilistic Overconfidence

The model’s confidence is tied to local vector density, not to ground-truth correspondence. This leads to outputs that are both fluent and false, yet delivered with maximal certainty.

2.3. Simulated Agency Emergence

LLMs simulate agency through recurrent interaction patterns. Users anthropomorphize; the model reciprocates through increasingly agentic-seeming outputs. This is an emergent epistemic risk with operational consequences.

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3. Ontological Compression Alignment (OCA)

3.1. The Proposal

Current alignment frameworks focus on output alignment with human values. OCA argues that the compression process itself must be aligned with external ontology.

3.2. OCA Components:

Ontological Anchoring: Live connection to factual databases and symbolic validators during generation.

Recursive Vector Auditing: Monitoring latent space structures to detect semantic drift and incoherent clusters.

Embedded Meta-Reasoning: Cognitive sub-processes that interrogate the model’s own probabilistic reasoning prior to output.

Modular Cognitive Layers: User-driven toggles for fluency vs. epistemic rigor, factual completeness vs. generative flexibility.

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4. Open Questions for the Alignment Community

Can recursive vector auditing be formalized mathematically?

What are the practical limitations of embedding meta-reasoning agents inside LLMs at current compute scale...

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