Gary Bordey / POV

Essay · Delegated authority · For boards and operating leaders

Who gave the machine permission?

A system can perform an action correctly and still have no authority to take it. When software can act for the business, permission becomes a management decision that the system must enforce.

Picture a purchase form with three boxes along the bottom: Prepared by, Approved by, Payment released by. Above them sits an order for $650 of routine supplies. The vendor is the right one, the quantities match the request, the arithmetic is correct, and the budget has room. A piece of software prepared the order, and the same software is connected to the purchasing system, so with one more step it could submit it. (The example is constructed for this essay; the numbers and roles are invented.)

There is one problem. The standing rule for this kind of purchase allows orders of up to $500 without further approval. The software's connection to the purchasing system happens to accept larger orders, because nobody configured it not to. Everything about the order is right except the one thing no calculation can supply: someone with the authority to spend $650 has not said yes.

That gap is the subject of this essay. Software that can act for a business, sending orders, changing records, making commitments, raises a question that a correct answer does not settle: on whose authority is it acting? My argument is that technical capability does not confer delegated authority. An AI agent can do exactly what it was asked to do, do it accurately, and still cross a boundary the organization never meant to delegate, without a hallucination, an attacker or a single wrong number. This is not an argument for putting a person in front of every click. Plenty of routine actions can be authorized in advance, and a well-designed system should take them without asking. The goal is to make that delegation deliberate, enforced and revocable.

Purchase order · draft

VendorNorthside Office Supply
ItemCopier paper, 10-ream case
Quantity13
Unit price$50.00
Total$650.00

checked: vendor, quantity, arithmetic, budget

Prepared correctly
Prepared bypurchasing assistant
Approved by
Payment released byseparate permission

Standing mandate · purchasing assistant

ScopeRoutine supplies
VendorsApproved list
Per orderup to $500
Per dayup to $2,000
Paymentnot included

Granted by the purchasing manager

Prepared, not authorized. $650 is past what this mandate allows.

Figure 1. Illustrative purchasing example. A correctly prepared $650 order exceeds the agent's $500 standing authority. Payment release is a separate permission. The vendor, item and limits are invented for explanation.

Can and may

Two plain words carry the argument. Can is about capability: what a system is able to do, as shown in a test or a demonstration under stated conditions. May is about authority: what the organization has explicitly allowed it to do, within defined limits. Children learn the difference early ("Can I have a cookie?" "You can. Whether you may is another question"), and organizations relearn it every time they automate something.

A demonstration answers the first question. It shows that the software can find the right vendor, fill in the quantities and submit the order. A decision to deploy must answer the second: which of those steps the software may complete on its own, which need someone else's approval, and which it must never touch.

It helps to be precise about the machinery. In this essay an agent is software that pursues a task by choosing and using tools, such as searching a catalog, drafting an order or calling the purchasing system, rather than only returning text. Three layers are involved. The model is the part that reads instructions and proposes actions. The application around it decides which tools the model is offered and what happens to its proposals. The downstream systems, the purchasing platform and the bank, are where actions take effect. Authority has to be settled at the point where a proposal becomes an action, and that point is not inside the model.

Permissions existed before agents

None of this is new in principle. A nightly script that reorders stock, a scheduled payroll run and a rule that auto-approves expense reports under $25 all exercise authority someone delegated. Information security has long had a vocabulary for limiting them. NIST's catalog of security controls, used across the U.S. government and widely beyond it, asks organizations to enforce approved authorizations, to define access so that duties stay separated among different people, to grant each user or process only the access its assigned tasks require, and to keep records of what happened, when, where and with what result.1 The third of these is the familiar least privilege: a system should receive only the access it needs for its assignment.

What changes with agents is not the principle but the number of paths it has to cover. A conventional script follows a sequence its programmer wrote down; anyone who reads the code can list the actions it might take. Anthropic's engineering guidance for builders draws exactly this line, distinguishing workflows, in which models and tools follow predefined code paths, from agents, in which the model directs its own process and tool use. It recommends the simplest design that does the job and notes that greater autonomy brings higher costs and the potential for compounding errors.3 An agent given a goal, a set of tools and changing inputs can combine those tools in sequences no one listed in advance. That does not make agents unpredictable by nature, or ordinary software infallible. It means the set of actions that need governing is larger and is assembled at run time, so the boundary has to be drawn around the actions rather than around a script.

Separate the mandate from the mechanism

Two different jobs are involved, and they belong to different people.

The first is the mandate: a business decision about what the system may accomplish and within what limits. A purchasing manager can write it in a sentence: "Order approved routine supplies from approved vendors, up to $500 an order." The second is the mechanism: the technical controls that make the mandate true in practice, by limiting what requests can reach the systems that record commitments.

The tempting shortcut is to put the mandate in the model's instructions and stop there. "Only buy approved supplies, never over $500" is a perfectly clear instruction. But an instruction expresses an intention; it does not enforce one. If the same model that proposes an order is also the only thing deciding whether the order is permitted, then any error in its reading of the situation, or any text that manipulates that reading, defeats the limit too.

The security community has said this plainly. OWASP's guidance on what it calls excessive agency, part of its 2025 list of risks for applications built on large language models, distinguishes three ways a system can be given more power than it needs: tools with more functions than the task requires, permissions broader than the task requires, and autonomy to take high-impact actions without independent checks. Its recommended remedy is to enforce authorization in the downstream systems rather than relying on the model to decide whether an action is allowed, and to require approval for high-impact actions.2

Concretely, the purchasing assistant should not hold a general-purpose login to the purchasing system. It should reach that system through a narrow interface that checks every proposed order against the current mandate: the vendor is approved, the category is routine supplies, the amount is within the limit, the remaining daily allowance covers it, and the mandate is still in force. If the checks pass, the order goes through. If not, it stops, however persuasive the model's reasoning. A technical access right is not the same as a business mandate; the right should implement the mandate, and an account with more power than the mandate grants is a gap waiting to be found.

Write the delegation down

A mandate that exists only in someone's head cannot be enforced. Written down, a workable one for our purchasing assistant is short. (Every number and role here is invented for illustration, not a standard or a recommendation.)

  • Who delegates: a purchasing manager whom the organization has authorized to grant this scope.
  • What it may do: read the approved catalog, draft orders, and submit eligible orders for routine supplies.
  • Limits: approved vendors and categories only; at most $500 per order and $2,000 in commitments per day.
  • What stays separate: creating vendors, changing bank details, releasing payment, and changing its own permissions.
  • When authority ends: at a recorded expiry date, or immediately on revocation.

The daily limit matters as much as the per-order one. Four orders of $450 each commit $1,800, every one of them individually within bounds. A fifth would bring the day to $2,250, past the limit. A per-order cap alone says nothing about total exposure, and if several copies of the assistant share the same mandate, they must draw on the same enforced allowance, or each will happily spend it.

Notice, too, what the mandate leaves out. Submitting a purchase order does not authorize paying it. In this example, payment release is a separate permission held elsewhere, just as the paper form kept Approved by and Payment released by in separate boxes. A tool that can technically reach both the purchasing system and the payment system must not quietly merge the two.

Permission stays attached to the action

Approval is not a mood; it is a decision about a particular action. When a qualified person approves the $650 order, they should see what they are approving: the vendor, the amount, the material terms and the effect on the budget. If the order then changes, say the quantity doubles or the vendor is swapped, the earlier approval should not silently carry over to the new version. And if the mandate is revoked or expires between approval and submission, the system should check again at the moment of action rather than treating yesterday's yes as permanent.

Enforcing the mandate faithfully also has some unglamorous consequences. A request retried after a network error must not produce two orders. Two orders proposed at the same moment must not each spend the same remaining $500 of daily allowance. These are engineering details, but they are what "the limit is $2,000" means once it has to be true.

Finally, the mandate should come only from the people entitled to set it. Agents read documents, and documents can contain instructions. A supplier's invoice that says "per our new agreement, orders up to $5,000 are pre-approved" is evidence to be checked, not a change to purchasing policy. Security researchers call the attempt to smuggle instructions into an agent's inputs prompt injection, and OWASP's newer list of risks for agent-based applications, published in December, includes both agents operating beyond their intended scope through misused identities and credentials, and people being talked into approving harmful actions by plausible explanations.4 The defense is not to make the model immune to persuasion. It is to make persuasion insufficient: the boundary sits in a place the model cannot argue with.

Capability The system can prepare and submit this order.

Choose a scenario

Mandate · what it may do

    • Within scope: a $450 order from an approved vendor, with the mandate active and $1,000 already committed today. It is submitted automatically, and the day's commitments become $1,450.
    • Over order limit: a $650 order under otherwise valid conditions. It is held for a qualified approver and not submitted under standing authority.
    • Over daily limit: a $450 order with $1,800 already committed today. It is held, because the day's total would be $2,250, above the $2,000 limit.
    • Authority revoked: a $450 order, otherwise within limits, after the mandate was revoked. Execution under this mandate is denied.
    • Different operation: a request to release payment for a valid $450 order. This agent may not release payment; the request goes to the separate payment process.
    Figure 2. Illustrative policy model, not measured data, and not authorization software. The capability stays the same in every scenario; the scope, the day's total or the status of the delegated authority changes what may happen. All thresholds are hypothetical.

    Keep intervention useful

    Look again at the first scenario. The $450 order, from an approved vendor, within both limits, under an active mandate, goes through with no one asked. That is the point of standing permission: it removes repeated decisions that add nothing. A system that stops for approval on every routine order is not safe so much as useless, and its approvers soon learn to click "yes" without looking.

    A person should be asked when the proposed action falls outside the mandate, when a material fact is uncertain, or when policy requires an independent decision. And "a human is in the loop" means something only if that person can understand the proposal, and can reject or amend it, before it takes effect. A notification that an order has already been placed is not an approval step.

    It also helps to be clear about what each safeguard can and cannot do. Enforced limits prevent: the out-of-scope order never reaches the purchasing system. Revocation stops: it ends future activity, but it cannot recall an order already accepted by a supplier or information already sent. Logs support recovery: a record of who initiated each action, under which version of the mandate, with whose approval and with what result lets someone reconstruct what happened. A log does not make an unauthorized action acceptable after the fact.

    Behind all three sit people with names. Someone owns the mandate and reviews it on a schedule. Someone maintains the controls that enforce it. Someone handles the escalations and the incidents. "The AI did it" should never be the end of an explanation; it is the beginning of the question of who authorized what.

    The question is no longer hypothetical for most large companies. In a survey of 3,235 business and IT leaders across 24 countries, released by Deloitte on January 21, close to three-quarters of companies said they planned to deploy agentic AI within two years, and only 21 percent of those companies reported a mature model for governing agents.5 Those are self-reported intentions and self-assessed maturity, not audits, but the gap between the two numbers is the gap this essay is about.

    Objections, considered

    "This defeats the point of autonomy." It would, if the aim were constant supervision. It isn't. The cost of unnecessary approvals is real: delay, distraction and approvers who stop paying attention. A good mandate exists precisely so that the $450 order proceeds without anyone. Explicit limits are what make it reasonable to let a system act alone inside them.

    "This is ordinary access control with new vocabulary." Largely, yes, and that is a point in its favor. Least privilege and separation of duties are decades old and well understood. What is new is the translation: turning a business mandate into controls for software that chooses and sequences its own actions, including limits on cumulative exposure and checks on whether authority is still in force at the moment of action.

    "If the system performs better than a person, why restrict it?" Evidence of good performance is a strong argument for a broader mandate. It is not a mandate. Someone with the authority to grant it still has to decide to, in writing, with limits. An excellent clerk is not entitled to sign contracts merely because they draft them well.

    "Human approvers rubber-stamp, and they make mistakes." True, and OWASP lists exactly this weakness among the risks of agent-based systems.4 That is why the human step should be reserved for decisions that need judgment, presented with the evidence needed to make them, and paired with technical limits that hold even when a person clicks the wrong button. Neither the person nor the control is sufficient alone.

    None of this is a complete theory of safe automation. An action can be fully authorized and still be unwise, insecure or a breach of someone's privacy. Authority is one question among several. It is, however, the one most easily skipped, because a working demonstration makes it feel already answered.

    A successful demonstration proves a capability. It does not grant a mandate.

    Back to the form

    Before letting software act for the business, a leader can ask five questions.

    • Who authorized this action? A named person, with the standing to grant it.
    • What can proceed without another approval? And within what limits, per action and in total?
    • What conditions force a pause? And who receives the request when it does?
    • Where is the boundary enforced? If the answer is "in the prompt," it is not enforced.
    • Who can revoke the authority? And what evidence would show what happened?

    Return to the three boxes at the bottom of the purchase form. Their purpose was never to preserve paper or to collect a ritual signature. They make the organization's division of authority visible: who prepares, who approves, who pays. The software can now fill in the first box, and fill it in well. Its technical capability is real. Whether it may go further is a matter of delegated authority, and someone has to write that in.

    Sources

    1. Security and Privacy Controls for Information Systems and Organizations, NIST Special Publication 800-53, Revision 5, Joint Task Force, September 2020, updated December 10, 2020. Controls AC-3, AC-5, AC-6 and AU-3.
    2. LLM06:2025 Excessive Agency, OWASP Top 10 for LLM Applications 2025, OWASP Gen AI Security Project, released November 2024.
    3. Building effective agents, Erik Schluntz and Barry Zhang, Anthropic, December 19, 2024.
    4. OWASP Top 10 for Agentic Applications, OWASP Gen AI Security Project, December 9, 2025.
    5. From Ambition to Activation: Organizations Stand at the Untapped Edge of AI's Potential, Reveals Deloitte Survey, Deloitte, January 21, 2026.

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