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    Decision framework

    When Can AI Assist, Recommend or Act?

    A practical autonomy-risk matrix for material AI-enabled workflows in financial services.

    10-minute readBuildMoat executive resource

    The decision to make

    The useful governance question is not “Is AI safe?” It is: what degree of autonomy is acceptable for this use case, given its potential impact if something goes wrong?

    This framework helps firms make that decision in a structured, risk-proportionate way. It does not replace the firm’s risk appetite, policy, legal analysis or governance processes.

    Autonomy-risk matrix

    Consequence of failure / AutonomyAssistRecommendInitiateExecute
    Low operational impactBasic controlsClear human ownerDefined workflow boundaryRestricted, low-risk automation
    Customer impactHuman reviewOutcome testing and challengeEnhanced approvals and evidenceExceptional approval; normally avoid unless tightly bounded
    Financial or regulatory impactHuman-led decisionIndependent challenge and strong evidenceNarrow mandate, enhanced controlsSenior approval, rigorous assurance and tested intervention
    Material customer, market or resilience impactAssistive use only unless exceptional caseEnhanced governanceGenerally avoid without compelling safeguardsGenerally prohibited or subject to exceptional governance

    Four autonomy levels

    Assist: The system drafts, searches, analyses or summarises. A human decides and acts. Minimum safeguards include safe-use standards, training, appropriate data controls, quality assurance and human responsibility.

    Recommend: The system produces a ranking, classification, score or suggested action that materially influences a person’s decision. Minimum safeguards include a named decision owner, evaluation, meaningful human review, outcome monitoring, challenge and ability to override.

    Initiate: The system triggers a workflow step or creates a proposed action within defined rules, usually requiring later approval for consequential outcomes. Minimum safeguards include an explicit mandate, workflow limits, identity and access control, action records, monitoring and an intervention path.

    Execute: The system takes a consequential action without case-by-case human approval. This requires exceptional governance, narrow scope, explicit risk appetite, strong authority limits, evidence, independent challenge, tested intervention, fallback and remediation.

    Decision questions

    1. What is the worst plausible consequence for a customer, firm or market?
    2. Is the action reversible? If so, how quickly and at what cost?
    3. Can a human meaningfully review the action before harm occurs?
    4. Are authority, permissions and operating limits explicit and enforceable?
    5. Can the firm reconstruct what occurred and demonstrate the control state?
    6. Can the firm restrict, pause or revoke authority with a safe fallback?
    7. Is the expected benefit sufficient to justify the residual risk?

    Practical use

    • Proceed as assistive AI.
    • Proceed with human approval and outcome monitoring.
    • Proceed only within defined bounded-execution controls.
    • Defer or prohibit until controls, evidence and intervention are stronger.

    Set a proportionate autonomy model for your AI estate

    BuildMoat’s AI Accountability Diagnostic maps priority workflows against autonomy and impact, then translates findings into accountable decisions and a 90-day roadmap.

    This resource provides practical governance guidance for discussion and planning. It is not legal advice, an audit, regulatory certification, a compliance score or a substitute for your firm’s own legal, regulatory, risk and governance decisions.