Final Authority in AI Governance: Frontier-Provider Sovereignty and Action-Centered Deployer Governance

Every system that performs effects has two boundaries: what it can do (expressiveness) and what governance covers (governance). In nearly all deployed AI systems, these boundaries are defined independently, creating three regions: governed capabilities (the only useful region), ungoverned capabilities (risk), and governance policies that address non-existent capabilities (theater). Two of the three regions are failure modes. We focus on the governance of effects: actions that AI systems perform in the world (API calls, database writes, tool invocations). This is distinct from the governance of model outputs (content quality, bias, fairness), which operates at a different level and requires different mechanisms. We present a formal framework for analyzing this structural gap. Rice's theorem (1953) proves the gap is undecidable in the general case for any Turing-complete architecture that attempts to govern effects behaviorally: no algorithm can decide non-trivial semantic properties of arbitrary programs, including the property "this program's effects comply with the governance policy." We define coterminous governance: a system property where the expressivenessboundary equals the governance boundary. We show that coterminous governance requires an architectural decision (separatingcomputation from effect) rather than a governance layer added after the fact. We show that structural governance under this separation subsumes separate governance infrastructure: governance checks become part of the execution pipeline rather than a second system running alongside it. We propose coterminous governance as the testable criterion for any AI governance system: either the two boundaries are provably identical, or risk and theater are structurally inevitable. Proofs are mechanized in Coq (454 theorems, 36 modules, 0 admitted).

Enterprise artificial intelligence is moving from isolated experimentation toward operational dependency across copilots, retrieval-augmented generation systems, autonomous agents, and AI-enabled business workflows. As this transition accelerates, the primary enterprise challenge is no longer only model access or inference scale. It is governed intelligence operations: the ability to enforce authorization, preserve contextual lineage, control persistent memory, detect stale or conflicting knowledge, constrain agentic execution, and produce audit-ready evidence across distributed AI estates. This paper introduces AGL-1, the Enterprise AI Governance Layer, as a vendor-neutral reference model for the control plane that should operate across foundation models, retrieval systems, orchestration frameworks, enterprise memory, policy engines, observability systems, tools, APIs, and business applications. Building on governed knowledge-system principles introduced in GKS-5, AGL-1 generalizes the governance problem from retrieval-specific controls to full AI execution-path governance. It identifies recurring failure modes such as unauthorized retrieval, stale grounding, unmanaged memory, weak provenance, policy drift, fragmented observability, and uncontrolled autonomous execution. It then defines seven governance domains: identity-aware retrieval, policy enforcement, provenance management, memory governance, knowledge integrity monitoring, agentic execution control, and trust observability. The central claim is that durable enterprise value from AI will increasingly depend on the ability to govern intelligence at scale. In complex enterprises, trust is not a property of the model alone. It is a property of the system around the model: identity, knowledge, policy, memory, tools, human oversight, and evidence working together as a managed control plane.

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.