2. Designing a Multi-Layered Architecture Implementing data guardrails at various levels will help provide comprehensive protection. Include the following layers: Data Layer - To sanitize inputs through format validation, anomaly detection, and metadata tagging. A financial AI might whitelist approved transaction columns while redacting account numbers before processing. Model Layer - To embed runtime monitors that flag outlier predictions. Techniques like confidence scoring and counterfactual testing help detect when models exceed operational boundaries critical for applications like dynamic pricing systems. System Layer - To enforce API rate limits, encrypted data flows, and role-based access. The Swiss Cheese Model’s defense-in-depth approach proves vital here, where overlapping controls at each stage create fail-safes.