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In computational materials engineering, the integration of artificial intelligence (AI) has transformed discovery pipelines from labor-intensive simulations to data-driven infrastructures capable of navigating vast chemical spaces. High-throughput computations and machine learning architectures, such as graph neural networks, have enabled rapid property prediction, accelerating the screening of candidates for applications ranging from energy storage to structural alloys. Yet, this paradigm emphasizes forward modeling—mapping inputs to outputs—often at the expense of mechanistic insight, which requires disentangling causal interactions within atomic-scale dynamics. The conceptual divide between property prediction and mechanistic insight manifests in epistemic tensions: predictive models excel in interpolation but falter in extrapolation, while insight-oriented approaches demand representations that encode not just structural motifs but relational hierarchies across scales. This manuscript introduces the Interpretive Cascade Framework, a systems-level conceptualization that reframes materials AI as a layered cascade of representation, inference, and steering logics. By integrating multimodal data streams with feedback-mediated discovery workflows, the framework elucidates how computational infrastructures can balance predictive efficiency with interpretive depth, mitigating risks of epistemic opacity in closed-loop experimentation. Structural layers delineate data ingestion to hypothesis refinement, incorporating uncertainty propagation as a steering mechanism rather than a mere byproduct. Implications for the field lie in reorienting AI ecosystems toward hybrid discovery logics, where representation learning informs inverse design without sacrificing traceability. This interpretive lens fosters resilient infrastructures, enabling materials science to evolve beyond black-box predictions toward epistemically robust computational paradigms that sustain long-term innovation in data-driven materials engineering.