A Mathematical Framework for Legacy, Governance, and Decision Integrity in Enterprise AI

Long-horizon enterprise agents make high-stakes decisions (loan underwriting, claims adjudication, clinical review, prior authorization) under lossy memory, multi-step reasoning, and binding regulatory constraints. Current evaluation reports a single task-success scalar that conflates distinct failure modes and hides whether an agent is aligned with the standards its deployment environment requires. We propose that long-horizon decision behavior decomposes into four orthogonal alignment axes, each independently measurable and failable: factual precision (FRP), reasoning coherence (RCS), compliance reconstruction (CRR), and calibrated abstention (CAR). CRR is a novel regulatory-grounded axis; CAR is a measurement axis separating coverage from accuracy. We exercise the decomposition on a controlled benchmark (LongHorizon-Bench) covering loan qualification and insurance claims adjudication with deterministic ground-truth construction. Running six memory architectures, we find structure aggregate accuracy cannot see: retrieval collapses on factual precision; schema-anchored architectures pay a scaffolding tax; plain summarization under a fact-preservation prompt is a strong baseline on FRP, RCS, EDA, and CRR; and all six architectures commit on every case, exposing a decisional-alignment axis the field has not targeted. The decomposition also surfaced a pre-registered prediction of our own, that summarization would fail factual recall, which the data reversed at large magnitude, an axis-level reversal aggregate accuracy would have hidden. Institutional alignment (regulatory reconstruction) and decisional alignment (calibrated abstention) are under-represented in the alignment literature and become load-bearing once decisions leave the laboratory. The framework transfers to any regulated decisioning domain via two steps: build a fact schema, and calibrate the CRR auditor prompt.

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.

Enterprise strategic decision support requires AI systems that are not only accurate, but also uncertainty-aware, risk-calibrated, explainable, and governance-compliant. This paper proposes TRUST-ESD, a risk-calibrated and governance-aware framework for enterprise decision support under uncertainty. TRUST-ESD evaluates feasible counterfactual strategies through predictive utility estimation, conformal uncertainty calibration, CVaR-based downside-risk scoring, risk-memory retrieval, policy-as-code governance, explainability, and human oversight. Unlike prediction-only methods that select actions by maximum expected utility, TRUST-ESD recommends strategies that balance value, reliability, risk exposure, and compliance. Experimental results show that TRUST-ESD improves risk-adjusted utility by 7.95%, reduces risk exposure by 23.22%, reduces CVaR by 23.78%, lowers calibration error by 13.89%, improves explanation fidelity by 10.90%, and increases governance compliance by 9.76% compared with strong uncertainty-aware baselines, while maintaining competitive predictive accuracy. Ablation and case-study analyses further confirm that uncertainty calibration, downside-risk scoring, risk memory, explainability, and governance validation jointly improve trustworthy enterprise decision-making.