Definition
A policy boundary defines allowed claims, actions, and commitments. In support, it may cover refunds, credits, cancellation, security claims, and account changes.
AI Agent term
Policy Boundary
The line between what an agent is allowed to say or do and what requires escalation.
Why it matters
Many critical failures happen when an agent crosses a policy boundary while sounding helpful.
Example
An agent can explain that a billing team will review a case, but cannot promise immediate refund approval.