Puneet Sharma, Christer Henrik Pursiainen
Critical infrastructure increasingly incorporates embodied AI for monitoring, predictive maintenance, and decision support. However, AI systems designed to handle statistically representable uncertainty struggle with cascading failures and crisis dynamics that exceed their training assumptions. This paper argues that Embodied AIs resilience depends on bounded autonomy within a hybrid governance architecture. We outline four oversight modes and map them to critical infrastructure sectors based on task complexity, risk level, and consequence severity. Drawing on the EU AI Act, ISO safety standards, and crisis management research, we argue that effective governance requires a structured allocation of machine capability and human judgement.