A Policy Algebra for Trust-Preserving Agentic AI Execution
This study addresses critical trust challenges in enterprise AI agents, including privilege escalation, data misuse, and audit deficiencies, by proposing a formal policy algebra framework. The approach defines reliable capability envelopes through compositional security constraints, integrating mechanisms for runtime obligation composition, budget tightening, and evidence accumulation to enable multi-agent trust propagation and cost-aware artifact materialization. Experimental evaluations demonstrate that the system intercepts 94.8% of violation events while achieving an 86.9% task completion rate and 98.6% audit integrity. These results indicate that the framework effectively eliminates critical security vulnerabilities, significantly enhancing both the reliability and auditability of agent execution while maintaining strict regulatory compliance.