A retailer’s AI system flags fraudulent returns. The documentation is flawless.
Then auditors ask for logs, override records, and proof that human review actually happened. The system passes policy review. It fails infrastructure review. This is the new compliance reality. Across the EU, US, and Asia-Pacific, enforcement is shifting from what policies say to what systems actually do. This piece explains why AI governance is becoming an infrastructure problem, what auditors are starting to look for, and what happens when documentation and architecture tell different stories.

