The Two Boundaries: Why Behavioral AI Governance Fails Structurally
arXiv cs.AI / 5/1/2026
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Key Points
- The paper argues that effect-capable AI systems have two distinct boundaries—what they can express and what governance covers—and that treating them independently creates “governed,” “ungoverned,” and “theater” regions, two of which are structural failure modes.
- It focuses specifically on governance of effects (e.g., API calls, database writes, and tool invocations), separating this from governance of model outputs like quality and fairness, which requires different mechanisms.
- Using Rice’s theorem, the authors claim the structural gap is undecidable in the general case for Turing-complete architectures, meaning no algorithm can reliably determine whether arbitrary programs’ effects comply with governance policies.
- They propose “coterminous governance,” where the expressiveness boundary matches the governance boundary, and argue this can only be achieved via an architectural separation of computation from effects rather than by adding governance as an afterthought.
- The authors further suggest that, under this separation, governance checks become part of the execution pipeline (subsuming separate governance infrastructure) and they present mechanized proofs in Coq as a testable criterion for governance systems.
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