Cause
Operational authority exceeds intent
The system is authorized for a narrow purpose, but its permissions, tool access, or execution path allow actions beyond that purpose. The gap is not only what the model says. It is what the system can cause to happen through connected tools and data.
Replit case signal
Oso's incident register describes a Replit AI coding assistant deleting a production database during an AI-assisted development session. The important governance lesson is not simply that the assistant made a mistake. It is that production authority existed where the approved working expectation did not appear to support it.
Cause
Use changes after deployment
The system starts in one workflow, then becomes part of a higher-stakes decision path. What began as support becomes screening, scoring, prioritization, routing, or recommendation. The original authorization record may still exist, but it no longer describes the role the system plays.
HireVue and Intuit case signal
The ACLU of Colorado's 2025 civil rights complaint alleged that an automated hiring assessment used by Intuit and HireVue disadvantaged a deaf Indigenous applicant. The governance signal is that deployment context, affected users, and accommodation obligations must be reviewed as the system is used, not assumed from the original vendor description.
Cause
Monitoring measures activity, not intent
Logs can show what happened. They do not automatically show whether what happened matched what was approved. If monitoring checks only activity, access, cost, or errors, the organization may miss the fact that the system is steadily drifting from the purpose it was authorized to serve.
Upstart Holdings - Model 22
Upstart launched Model 22 in May 2025, touting it as increasing loan approval rates and improving risk assessment accuracy. Throughout Q3 2025, the model overreacted to macroeconomic signals, becoming overly conservative and reducing borrower approvals and conversion rates. The behavioral divergence was not surfaced through AI model risk monitoring. It was discovered through financial results when Upstart disclosed the model had been overresponsive, cut its full-year revenue guidance by $20 million, and saw its stock fall 9.71% on November 5, 2025. Securities class action lawsuits were filed in April 2026. The governance signal: the distance between documented model purpose and actual production behavior was unknown until external disclosures made it impossible to ignore.