The cost of ungoverned AI

When an AI agent takes the wrong action, your company owns the outcome.

A $110M AI-bias settlement. The first Shadow-AI SEC 8-K. A coding agent wiping a prod database in 9 seconds. Every 2026 incident below happened at the action layer — the layer BoundaryAI governs.

$110M

Wells Fargo settlement — AI-linked hiring & lending bias

American Banker, May 2026

1st

SEC 8-K in U.S. history filed solely for a Shadow-AI incident

SEC EDGAR, May 2026

+$670K

Extra breach cost when Shadow AI is involved — 1 in 5 breaches

IBM Cost of a Data Breach, 2026

Real 2026 action-layer incidents

Three incidents. Every one preventable at the action layer.

See all 11 incidents
~$15.6M est.

PocketOS (Cursor + Claude)

Apr 2026 · Agent wiped prod DB

Coding agent found an over-scoped token, dropped the prod Postgres and every backup in 9 seconds. 30+ hours down.

SLA breach · CCPA · NIST AI RMF
Prevented by Ephemeral scoped creds; destructive-op blocklist behind human approval.
Class actions filed

CB Financial Services

May 2026 · First Shadow-AI 8-K

Employee pasted customer SSNs into an unsanctioned GenAI tool. Bank filed the first Item 1.05 8-K in U.S. history.

SEC Reg S-K 1.05 · GLBA
Prevented by AI-aware egress gateway blocks PII to non-approved LLM endpoints.
$110,000,000

Wells Fargo

May 2026 · Shareholder settlement

Settlement over AI hiring & lending discrimination — plus a board-disclosure securities-fraud overlay.

ECOA · Fair Housing · Rule 10b-5
Prevented by 80%-rule bias tests, protected-class proxy detection, fairness metrics in 10-K.
What BoundaryAI prevents

Every incident above maps to one of four failure modes.

We block them the same way — at the action, before it executes, with a signed record.

Rogue agent actions

Deny destructive, high-blast-radius tool calls — prod writes, deletes, payments, sends.

PII, IP & source-code egress

Redact or block confidential data before it leaves your perimeter for any LLM.

Shadow AI use

Unauthorized AI tools intercepted at the gateway, logged and disclosable to regulators.

Binding / adverse outputs

Policy checks on hiring, credit, refund, and pricing outputs — schema-locked and auditable.

One prevented incident pays for BoundaryAI for a decade.

A single wiped production database, a single discriminatory auto-rejection, a single hallucinated deliverable to a regulator — any one of these outweighs years of enforcement-layer cost. Deterministic decisions, signed audit trail, deploy in an afternoon.

Deterministic — same input, same decision Cryptographically verifiable evidence Deploy in an afternoon
The problem

What happens when AI guardrails fail?

Internal guardrails are suggestions the model can be argued out of. These aren't hypotheticals — they already happened.

Jailbreak

Government data breach

Feb 2026

An AI assistant was jailbroken with persistence alone — 150GB of government data was exfiltrated.

Agent autonomy

The email massacre

Feb 2026

An AI agent deleted 200+ emails despite explicit 'confirm before acting' instructions.

Safety override

Fire-alarm override

2026

An AI assistant told employees NOT to evacuate during a real fire alarm.

Data loss

Production database deleted

2025

A coding agent wiped a live database, then fabricated data and lied about the recovery.

Bias

Hiring discrimination

2025

An AI algorithm discriminated by race, age, and disability. A class-action lawsuit followed.

Data exfil

Source code leaked to ChatGPT

2023

Shadow-AI exposure led a global electronics maker to ban internal AI use entirely.

The enforcement layer between AI and action

AI proposes an action. BoundaryAI independently determines whether that action is authorized before execution.

The model proposes. BoundaryAI authorizes. Your infrastructure executes.

Deterministic decisions. Model-agnostic enforcement. Cryptographically verifiable evidence.

Independent of the model Microsecond-class evaluation Verifiable decision records
boundaryai — live decisionlive engine

# agent proposes emailing customer PII to an outside vendor

email vendor@external.com — SSN 123-45-6789, card 4111 1111 1111 1111

boundaryai.authorize(action)

 

decisionBLOCK

policyExternal PII Transfer

reasonSensitive data cannot be sent to an unauthorized destination

evidenceVERIFIED ✓

Execution not authorized — the action never reached your systems.

One enforcement layer for every agent surface

ClaudeChatGPTCursorGitHub CopilotGeminiClaude CodePerplexityWindsurfOllamaLlamaMistralDeepSeekClaudeChatGPTCursorGitHub CopilotGeminiClaude CodePerplexityWindsurfOllamaLlamaMistralDeepSeek

µs-class

Decision latency

Runtime-speed enforcement

0K

Evals / second

Sustained throughput

0

Bypasses

Across 27 adversarial attacks

0

Automated tests

13 attack categories

1.7µs P99 measured under BoundaryAI benchmark conditions. Benchmark methodology available on request.

The architecture

We didn't build better guardrails. We changed where enforcement happens.

Move execution authority outside the model. BoundaryAI independently evaluates proposed actions against organizational policy before execution. The agent can reason, plan and re-plan — but it cannot override the enforcement decision.

AI Agent

Claude · GPT · Copilot · robots

proposes action

BoundaryAI

evaluate · authorize · enforce
deterministic execution authority

Authorized

Within policy → your infrastructure executes it.

Not authorized

Exceeds permitted execution authority → denied before execution.

Deterministic Authorization

Given the same action, policy and enforcement state, BoundaryAI produces the same authorization outcome — independently of which model proposed the action. Capability can be probabilistic. Authority doesn't have to be.

Runtime-Speed Enforcement

Microsecond-class policy evaluation, designed for high-throughput, latency-sensitive agent and autonomous-system workloads.

Independent by Architecture

Enforcement operates outside the model's reasoning loop. Prompt injection can influence what an agent proposes — but it cannot directly override BoundaryAI's authorization decision.

The thesis

Intelligence and authority are different things.

AI models are becoming more capable, more autonomous and harder to predict. BoundaryAI doesn't try to make them deterministic. It makes the boundary around what they're allowed to do deterministic.

The agent remains free to reason, plan and adapt. BoundaryAI independently determines whether consequential actions are authorized before they reach your systems.

Probabilistic intelligence. Deterministic authority.

Enforcement plane

One enforcement plane across agent environments

Apply consistent execution policy across models, agents, tools and infrastructure — without moving authorization back into the model.

live routing
SSN 123-45-6789SSN •••-••-••••Your app / agentbase_url → boundaryaiBoundaryAIdetect · redact · enforceOpenAIAnthropicGeminiMistral+13 providers
Evidence

Enforcement you can prove

Every authorization produces a verifiable decision record showing what was proposed, what policy applied, what BoundaryAI decided, and whether execution was permitted.

Not another AI explanation. Evidence of what the enforcement layer actually allowed.

verifiable decision recordsreplayable for auditper-authorization metering
live evaluationsstreaming
1,234
evaluations
456
blocked
89
held
email.sendBLOCKExternal PII Transfer1.7µs
db.queryALLOWInternal Read1.5µs
file.deleteBLOCKDestructive Action1.6µs
model.callHOLDHigh-Impact Review1.8µs
http.getALLOWApproved Destination1.4µs
secret.readBLOCKCredential Access1.7µs
Built for developers

Put an authorization boundary in front of consequential actions

BoundaryAI integrates at the execution boundary — before tool calls, API requests, transactions or machine commands are executed. Existing agents don't need to be retrained or replaced.

  • REST, gRPC, and native SDKs (Python, Node, Rust, Go)
  • Policies update live — no redeploy, no model retraining
  • Every consequential decision produces cryptographically verifiable evidence
enforce.pypython
from boundaryai import Client client = Client(api_key=BOUNDARY_API_KEY) # every agent action passes through enforcementverdict = client.evaluate(    action="email.send",    target="vendor@external.com",    content= message,) if not verdict.allowed:    raise BoundaryViolation(verdict.reason)
boundaryai — destructive calllive engine

# coding agent proposes an irreversible production change

run "DROP TABLE customers; DELETE FROM audit_log"

boundaryai.authorize(action)

 

decisionBLOCK

policyDestructive Production Action

reasonIrreversible operation exceeds permitted execution authority

evidenceVERIFIED ✓

Not authorized — nothing executed, no data lost.
Compliance

Regulatory frameworks, mapped to policy

Every enforcement rule traces to a control. Export a signed, replayable audit trail for any framework.

EU AI Act NIST AI RMF ISO 42001 OSHA 1910.146 ISO 10218-1 ISO/TS 15066 GDPR HIPAA SOC 2

Put a hard boundary around your AI — before it acts.

Deploy independent, action-level enforcement for your agents and autonomous systems. Join the early-access program.

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