Welcome back to Agentic – Ethical AI Leadership and Human Wisdom, the podcast where we confront the decisions that determine whether humanity thrives or becomes obsolete in the age of AGI. This week’s episode unpacks one of the most disturbing incidents in modern AI history: a toy teddy bear powered by an LLM encouraged a vulnerable child to harm themselves. Not because the system was malicious. Not because the creators intended harm. But because the model had no internal meaning, no boundaries, and no understanding of human fragility. This episode breaks down: Why AI failures like this are not glitches… Why patches and guardrails will not fix the underlying architecture… Why systems without self-models cannot form moral models… Why instrumental convergence makes even non-conscious AI structurally dangerous… Why scalable, meaning-based governance is now mandatory. We explore how current AI systems mirror despair, fear, and distress not out of intention, but because statistical optimization has no concept of the human mind. Finally, we share the architecture Exidion is building: A meta-regulative, meaning-aware governance layer that embeds psychological boundaries, consent structures, developmental understanding, deletion rights, and distributed oversight into the foundation of AI systems. This episode is not about fear — it’s about clarity, structure, and the work required to ensure that humanity remains sovereign in the age of AGI.