Ambiguity-Bearing Outputs (ABO)

What Is an Ambiguity-Bearing Output?

An Ambiguity-Bearing Output (ABO) is an AI-generated output that passes all local validity checks but carries enough semantic latitude to trigger unintended, misaligned, or irreversible interpretations when it is consumed by downstream systems.

The concept was introduced by Myriam Ayada in 2026 to describe a failure mode specific to enterprise environments where multiple AI and non-AI systems exchange outputs across automated pipelines.

Formal Definition

According to Ayada (2026), an output y is an Ambiguity-Bearing Output if:

1. Local validity: y belongs to the set of locally valid outputs.
2. Non-zero semantic latitude: y deviates from the nominal output by δ ≠ 0.
3. Downstream divergence: At least one downstream system produces a differentdecision than the nominal output would have.

How ABOs Differ from Other AI Failure Modes

ABOs are not errors or hallucinations. They are a structural consequence of deploying AI systems whose outputs are semantically open; meaning multiple valid outputs exist for the same input, and local checks cannot distinguish between them.

AMBIGUITY-BEARING OUTPUT (ABO) Locally valid. Downstream destructive. SYSTEM BOUNDARY AI SYSTEM Generates output Passes local checks Output ✓ Locally valid ⚠ Semantically open δ ≠ 0 DOWNSTREAM SYSTEM Reinterprets output Divergent decision risk_score = 0.39 AI model: within normal range → Valid output ✓ 0.39 → MEDIUM (threshold: 0.38) But 0.37 → LOW → different path → Discretisation jump ✗ BOUNDARY Every system reports healthy. The environment is drifting. mind-xo.com/research

Failure Mode Mechanism Key Difference from ABO
Hallucination Model produces incorrect output ABO outputs are locally valid and plausibly correct
Data drift Input distribution changes ABOs cause drift even when inputs remain stable
Fault cascade Component fails, triggering downstream No initiating fault; no threshold violation
Underspecification Multiple predictors fit training data ABO extends from predictors to outputs at interfaces

Industry Context: Semantic Drift & Non-Determinism

In enterprise data engineering, the downstream effects of ABOs are frequently categorised as “semantic drift” or treated as unavoidable “LLM non-determinism.” However, semantic drift is merely the symptom. Even when an LLM’s temperature is set to zero (perfect determinism), it still produces outputs with non-zero semantic latitude. When these semantically open outputs are consumed by legacy systems, the resulting environment-level failure is caused by an Ambiguity-Bearing Output.

Why Do ABOs Matter for Enterprise AI?

Enterprise AI outputs now flow into routing rules, eligibility checks, scoring pipelines, and retraining loops. An AI system can produce a locally acceptable output that is sufficiently underdetermined that downstream systems interpret it inconsistently with organisational intent.
Result: every system appears healthy, but the environment drifts. In simulation of a credit scoring pipeline, a +0.1pp approval rate shift produced 39 excess defaults and 2.5% P&L damage (Ayada, 2026).

Concrete Example: Underwriting Drift

Step 1: An LLM writes: “moderate risk; approve with enhanced verification.” Passes local checks, but “enhanced verification” admits multiple downstream interpretations.

Step 2:
A rules engine discretises into a risk band. Subtle wording differences cross categorisation thresholds: a discretisation jump.

Step 3:
Feedback loops respond with delay, reinforcing the shifted behaviour.

Step 4:
No component is wrong, but portfolio metrics drift. Attribution to the original cause becomes difficult.

Why Generative AI and Agentic AI Amplify ABO Risk

Generative AI places semantically open interfaces into high-throughput machine-to-machine corridors. ABOs that would have been caught by human interpretation now propagate at machine speed.

Agentic AI compounds this: autonomous decision chains across multiple systems without human checkpoints. Each agent-to-agent handoff is a potential ABO propagation point.

Propagation Mechanisms

Discretisation jumps: Corridors mapping continuous AI outputs to categorical decisions. Small semantic latitude produces categorically different outcomes.

Feedback reinforcement:
Deviation re-enters through calibration loops. Insimulation, divergence persisted 400 timesteps after ABO cessation (Ayada,2026).

Simulation Evidence

In a simulation that replicates a realistic AI-integrated underwriting pipeline, e.g. four interconnected systems processing loan applications over 1,200 decision cycles, we measured what happens when a single AI output carries just enough ambiguity to pass local checks but shift downstream behaviour. Below the main results:

Metric No ABO With ABO ABO + ISCIL
Approval rate 72.8% 72.9% (+0.1pp) 72.3%
Total defaults 1,807 1,846 (+39) 1,807 (recovered)
Net P&L +$15,252 +$14,876 (−$376) +$14,968
Detection No system alerts ISCIL at ~t=50
Source: 1,200-timestep simulation, 4-node ISE. Ayada (2026), Table 1.

Learn More

Check the key concepts

ISE Framework →/research/interconnected-systems-environment

ISCIL Architecture→ /research/iscil-containment-architecture

Glossary →/research/glossary

Source & Citation

Ayada, M. (2026). Propagation of Ambiguity-Bearing Outputs Across Interconnected Systems Environment. TechRxiv (in review).

Code: github.com/Myr-Aya/ISE_simulator
Archive: Zenodo DOI 10.5281/zenodo.18719967