How to Define an AI Agent's Authority Boundaries

An AI authority boundary is the defined limit on what an AI agent may do in a given context. Without boundaries, an agent can attempt any action its tools allow. With boundaries, each protected action is checked before it executes and can be allowed, held, transformed or denied.

Start with permitted actions. List every action the agent is explicitly allowed to attempt. Be specific. 'Update customer records' is too broad. 'Update customer address fields for the agent's assigned customer segment' is a boundary.

Define prohibited actions. These are actions the agent must never attempt, regardless of context. A procurement agent should never modify bank account details. A customer service agent should never access other customers' data. Prohibitions are absolute.

Set financial thresholds. If the agent can approve payments, raise purchase orders or issue refunds, define the maximum value per transaction and the aggregate limit per period. Above the threshold, the action requires human approval.

Define approval requirements. Which actions need a human to approve before they execute? The answer depends on consequence. Actions with financial, regulatory or data-protection consequences typically require approval. Routine actions do not.

Set geographic and contextual restrictions. An agent may be permitted to act in one jurisdiction but not another. It may be permitted during business hours but not overnight. It may be permitted for one customer segment but not another. Context-aware rules make boundaries practical.

Define escalation and failure behaviour. What happens when the agent cannot proceed? What happens when something goes wrong? An agent that fails silently is dangerous. An agent that escalates to a human when it encounters an undefined situation is governed.

Finally, define authority revocation. How is the agent's authority withdrawn if it misbehaves or the use case is retired? Revocation must be immediate and complete. An agent whose authority cannot be revoked is not under control.

Karvin defines and enforces authority boundaries using VORTIQ-X runtime AI Action Authority, integrated with ServiceNow governance. If you are defining boundaries for an AI use case, our AI Authority Readiness Assessment evaluates 19 dimensions of readiness.