Organizational Control Layer: Governance Infrastructure at the Execution Boundary of LLM Agent Systems

Abstract

LLM-based agents are increasingly deployed in workflows where generated outputs may directly trigger state-changing actions. This creates an execution-boundary problem: proposed actions must be governed before they are executed. We study this problem through economically consequential multi-agent interactions and argue that deployment-grade agent systems should separate proposal generation from environment-facing execution. To operationalize this principle, we introduce the Organizational Control Layer (OCL), a model-agnostic governance infrastructure that intercepts generated actions before execution through policy enforcement and escalation, without modifying the underlying LLM generator. We evaluate OCL on adversarial buyer--seller negotiation environments adapted from AgenticPay. Across multiple frontier LLM backends, OCL reduces unsafe executions from 88% to near-zero while increasing valid success from 12% to 96%. Results further reveal a safety--utility tradeoff: strict governance improves compliance and reliability against policy and constraint violations, but can reduce flexibility in tightly constrained markets. These findings suggest that deployment-grade LLM agent systems require explicit governance at the boundary between language generation and executable actions. The source code is available at: https://github.com/SHITIANYU-hue/amai_ocl