Many manufactures have what you describe, it is known as "Adaptive Control".
The systems I have worked with profile the current draw on the motor (as one of the metrics). While the cutting tool stays with its parameter, the machine continues on.
If the Adaptive Control detects wear/breakage, the control is flagged.
On a Fanuc machine, if the machine is equipped with "Marco interrupt", the machine can now perform other functions. This could include, retracting and switching pallets, grabbing a replacement tool and resuming the cut or any other thing you can do with a macro.
There are stand alone systems as well, Caron Engineering has a "TMAC" system and I am sure there are other companies.
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