# Evaluating Bounded Autonomy in Regulated Agentic AI: A Diagnostic Harness with Constitutional Rewards, Escalation Labels, and Runtime Governance

arXiv: https://arxiv.org/abs/2609.37501 · HTML: https://mlsanity.com/paper/2609.37501/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Agent threats, guardrails and governance, one of 16 directions in LLM agents and tool use.
- Builds on 16 of its 21 references that are in the map.
- First posted on arXiv 28 Sep 2026.

## Placed in

- LLM agents and tool use / [Agent threats, guardrails and governance](https://mlsanity.com/agents/agent-threats-guardrails-and-governance/)

## Builds on (most cited first, 16 of 16)

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- [Tulu 3: Pushing Frontiers in Open Language Model Post-Training](https://mlsanity.com/paper/2411.15124/) (2024)
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- [FinBERT: Financial Sentiment Analysis with Pre-trained Language Models](https://mlsanity.com/paper/1908.10063/) (2019)
- [Closing the AI Accountability Gap: Defining an End-to-End Framework for Internal Algorithmic Auditing](https://mlsanity.com/paper/2001.00973/) (2020)
- [AGrail: A Lifelong Agent Guardrail with Effective and Adaptive Safety Detection](https://mlsanity.com/paper/2502.11448/) (2025)
- [PSG-Agent: Personality-Aware Safety Guardrail for LLM-based Agents](https://mlsanity.com/paper/2509.23614/) (2025)
- [Constitution or Collapse? Exploring Constitutional AI with Llama 3-8B](https://mlsanity.com/paper/2504.04918/) (2025)

## Abstract (arXiv)

We propose RegLLM, a diagnostic harness for bounded autonomy in regulated agentic workflows. It instruments six trustworthiness signals: citation validity, source grounding, schema compliance, escalation correctness, constitutional alignment, and unsafe-action rate. Signals are distinguished by their source of supervision: programmatic verifiers, task-level escalation labels, or AI-judge scores. A deterministic runtime supervisor blocks ungrounded answers and forces escalation, logging interventions. The same domain constitution informs evaluation, training rewards, and serving guardrails. Task-level should-escalate labels make the act-versus-defer decision a measurable training signal. We demonstrate the harness at smoke scale. An offline reference run (n=12) lifts escalation recall from 0 to 0.67 and reduces unsafe-action rate from 0.33 to 0.08 when governance is enabled. Two single-GPU Qwen2.5-3B LoRA/DPO pilots (n=8, same seed and evaluation split) expose substantial variation: nominally identical RL-base configurations yield task success of 0.25 versus 0.12 and escalation recall of 1.0 versus 0.5. An answer-quality adapter changes recall from 1.0 to 0.5 in Run A, but from 0.5 to 1.0 in Run B. An escalation-aware variant produces no measurable change in Run B. These small pilots do not establish reliable adapter effects or production readiness. Their contribution is diagnostic: configuration variance can overwhelm apparent tuning effects on bounded-autonomy metrics, motivating larger evaluation sets and repeated runs.