Built for Control and Oversight
What is AI Agent governance for ERP systems?
AI agent governance is the framework of controls, oversight mechanisms, and audit processes that ensure AI agents operate within defined business rules, maintain security standards, and provide complete transparency. It includes access controls, approval workflows, audit trails, human oversight, and the ability to pause or modify agent behavior at any time.
Companies running ERP systems already have security models, approval workflows, and audit requirements.
AI agents work within these existing frameworks. They don't replace your controls. They extend them to automated exception handling.
KEY GOVERNANCE PRINCIPLE
Agents operate within existing ERP security models
Every action is logged and auditable
Human approval required for high-risk decisions
Complete transparency into agent behavior
Immediate stop capability when needed
Security and Access Control
Representative results from recent mid-market implementations:
ERP INTEGRATION SECUTIRY
AI agents operate as users within your ERP system. They authenticate through standard user credentials. They access only the data and functions their permissions allow. They respect your existing role-based access controls.
No separate security layer. No parallel authentication system. No additional administrative overhead
What this means operationally:
-
Agents inherit your ERP security model
-
Permissions managed through existing tools
-
Access audited through standard ERP logs
-
Deactivation works like any user account
DATA PROTECTION
DATA HANDLING
Agents need access to ERP data to make decisions and take actions. This typically involves extracting relevant exception data (invoices, orders, customer records) to a processing environment where the agent can analyze and act. Only data necessary for the specific exception process is accessed.
DEPLOYMENT APPROACH
Most implementations deploy agent infrastructure within your existing cloud environment (AWS, Azure, Google Cloud) or on-premises systems. This means the agent operates within your security perimeter, subject to your existing data protection controls.
YOUR RESPONSIBILITY
You maintain control over where and how agent infrastructure is deployed. You determine what data the agent can access. You configure encryption, network security, and access controls according to your standards.
Audit and Compliance
AUDIT TRAIL
Agent actions can be logged to your ERP system or to separate audit databases depending on your implementation approach. The level of detail captured depends on how you configure the integration.
Typical audit information includes: agent identifier, action taken, timestamp, affected records, and outcome. This provides visibility into what agents are doing and creates documentation for review purposes
What this means operationally:
-
Direct writes to ERP audit tables
-
Separate audit database with ERP record references
-
Event logs captured by your existing monitoring systems
-
Combination of methods based on action type
REGULATORY COMPLAINCE
Your compliance requirements determine how agents are implemented and what controls are necessary.
Companies in regulated industries (financial services, healthcare, manufacturing) deploy agents within their existing compliance frameworks. The agent becomes another system component subject to your standard controls, audit processes, and regulatory procedures.
Your compliance team defines what documentation is required, what approval workflows are needed, and what audit trails must be maintained. Implementation adapts to these requirements.
REPORTING AND VISIBILITY
Standard reports:
📊
Agent Activity Summary
Actions per day, type, outcome
⏱️
Exception Resolution Metrics
Time to resolution, escalation rate
📈
Performance Trends
Improving, stable, degrading
⚠️
Error Analysis
Error and escalation analysis
Custom reporting: Your reporting tools query agent activity the same way they query human activity. Standard SQL access to audit tables. Integration with existing business intelligence platforms.
Human Oversight and Control
APPROVAL WORKFLOW
You define which actions agents handle autonomously and which require approval.
Common approval thresholds:
Manager Approval
Credit adjustments > $5,000
Accounting Approval
Write-offs > $1,000
Procurement Approval
Vendor disputes > $10,000
Sales Manager Approval
Customer returns > $2,500
Agents recognize these thresholds, create approval requests, route to appropriate staff, and wait for decision before proceeding.
What You Control
🎯
Process scope
Which exception types agents handle. Which customer segments. Which dollar thresholds. Which products or services.
🔒
Data access
Which ERP modules agents can read. Which records agents can modify. Which customer or vendor information agents can view.
⚡
Action authority
Which communications agents can send. Which records agents can update. Which approvals agents can request. Which escalations agents can create.
⚠️
Operating parameters
Hours of operation (business hours only, or 24/7). Processing capacity (maximum exceptions per hour). Response timing (immediate, or batched).
📊
Performance monitoring
Success rate thresholds. Escalation rate limits. Response time standards. Error rate tolerances.
Agent Behavior Controls
Decision logic
Agents apply rules you define. These rules come from your current processes, documented as agent logic. When processes change, you update agent rules through configuration, not code changes.
Learning and adaptation
Agents track outcomes and identify patterns (which outreach methods get responses, which vendors respond fastest, which customers need escalation). They present these patterns to you. You decide whether to incorporate them into rules. No automatic behavior changes without approval.
Real-time monitoring
Dashboards show current agent activity, recent decisions, pending approvals, and performance metrics. Alert notifications when thresholds are exceeded or unusual patterns detected.
Override capability
Pause an agent with one action. Modify rules without redeployment. Stop processing entirely while investigating issues. Resume when ready.
Implementation Approach
1
Pilot phase
Most implementations start with documented decision logic for one exception process, defined approval thresholds, and monitoring configuration. Initial deployment typically covers a limited scope (one customer segment, one product line).
2
Expansion
After validating the pilot approach, scope expands based on results. Additional exception processes added incrementally. Rules refined based on operational experience.
3
Ongoing management
Regular review of agent performance and rule effectiveness. Updates made through configuration changes. Stakeholder feedback incorporated into rule refinement.
Technical Controls
CONNECTIVITY
System Integration:
Agents connect to your ERP through available integration methods depending on capabilities and IT policies.
Access is limited to specific modules. Changes follow manual validation rules.
Standard APIs
Database Connections
File-based Transfers
Operational Controls
⚖️
Capacity Management
Processing limits can be configured to prevent system overload. Includes maximum transactions per period and queue load distribution.
🛡️
Error Handling
When agents encounter errors, processing escalates to manual queues. This prevents forced automation of unknown situations.
📡
Monitoring
Dashboards and alerts provide visibility into agent activity. You determine what monitoring is needed and how alerts are configured.
📈
Performance
Dashboards showing processing volume, success rates, and error rates, with configurable alerts for situations requiring attention.
Common Questions
Practical answers on ERP compatibility, timeline, governance, auditability, and how pilots work.
When Governance Matters Most
Governance requirements are not static. They increase based on specific operational triggers:
Financial transaction volume and amounts
Regulatory compliance requirements
Customer and vendor data sensitivity
Company audit obligations
Adaptive Implementation
Your implementation approach adapts to these requirements. Higher-risk environments need more controls, approval workflows, and documentation. Lower-risk situations can start simpler and add controls as needed.