The Two Boundaries: Why Behavioral AI Governance Fails Structurally

We present a machine-checked formalization of structurally governed AI workflow architectures and prove that effect-level governance can be imposed without reducing internal computational expressivity. Using Interaction Trees in Rocq 8.19, we define a governance operator G that mediates all effectful directives, including memory access, external calls, and oracle (LLM) queries. Our development compiles with 0 admitted lemmas and consists of 36 modules, ~12,000 lines of Rocq, and 454 theorems. We establishseven properties: (P1) governed Turing completeness, (P2) governed oracle expressivity, (P3) a decidability boundary in which governance predicates are total and closed under Boolean composition while semantic program properties remain non-trivial and undecidable by governance, (P4) goal preservation for permitted executions, (P5) expressive minimality of primitive capabilities (compute, memory, reasoning, external call, observability), (P6) subsumption asymmetry showing structural governance strictly subsumes content-level filtering, and (P7) semantic transparency: on all executions where governance permits, the governed interpretation is observationally equivalent (modulo governance-only events) to the ungoverned interpretation. Together, these results show that governance and computational expressivity are orthogonal dimensions: governance constrains the effect boundary of programs while remaining semantically transparent to internal computation.

Frontier AI governance often centres on the model-level governance paradigm, which assumes that a model's capability profile is primarily a function of the compute and data used during training. This position paper argues that model-level governance becomes less effective when capability progress is increasingly driven by "non-model gains"--improvements that are independent from advances in the base model. We formalise the concept of non-model gains and provide a taxonomy of three distinct vectors of capability gain: inference gain (scaling compute at test-time), systems gain (post-training enhancements such as scaffolds), and asset gain (enhancing a model with restricted assets). We demonstrate how these vectors--alongside potential future impacts from embodiment, continual learning, and AI diffusion--may undermine risk management strategies that hinge mostly on pre-deployment evaluation and mitigation. We provide an overview of governance approaches that go beyond the model level: system, entity, agent, and cloud governance. Finally, we emphasise the importance of societal resilience as a complement to these governance layers.

Autonomous AI agents increasingly perform consequential actions on behalf of human principals, including financial transactions, external communications, and enterprise workflows. Existing agent infrastructure relies on identity federation and delegated authorization to authenticate workloads and control resource access, but it cannot determine whether an authorized action should be executed under the current behavioral and operational context. We present AgentBound, a runtime governance framework that provides verifiable behavioral oversight for autonomous AI agents. AgentBound evaluates each proposed action using three independent authorities: delegated authorization, owner-signed behavioral constitutions, and site action contracts. Their judgments are conservatively composed through a formal decision model to determine whether an action should be permitted, reviewed, or denied before execution. To provide accountability, AgentBound generates cryptographically verifiable governance receipts that bind every action to the exact delegation, policy, and semantic artifacts governing the decision, enabling independent replay verification and policy provenance. The framework also introduces standing delegation for long-running agents, allowing periodic workloads to operate under continuously refreshed governance policies while preserving revocability and bounded authority. We present the formal foundation, system architecture, governance receipt protocol, and AgentBound-Bench, a benchmark framework for evaluating governance correctness, authority composition, and accountability. Rather than replacing model alignment, AgentBound complements it by providing a deterministic governance layer between authorization and execution, transforming governance from a process that must be trusted into one that can be independently verified.