Section 7 of OMB's AI memo counts risks even when "an AI application performs a background task or silently declines to take an action." That is a fair description of what an AI agent does all day. This post covers agentic AI in government through the three federal sources that now speak to it, OMB M-25-21, GSA's AI clause and NIST's proposed agent identity tenets, and where human approval belongs once software acts on its own.
What is agentic AI in government?
An AI agent is a system that takes actions in other systems to reach a goal, choosing its own steps along the way. NIST's Center for AI Standards and Innovation (CAISI) described AI agent systems in a January 2026 request for information as "capable of taking autonomous actions that impact real-world systems or environments."
The Office of Management and Budget (OMB) memo M-25-21 doesn't use the word agent, but its definition of AI "includes systems that are fully autonomous, partially autonomous, and not autonomous," with and without human oversight. It leaves out robotic process automation and other systems "whose behavior is defined only by human-defined rules." A scripted bot that moves files on a schedule is likely outside the memo. An agent that uses a model to decide which file to move, and where, is likely inside it, and the Chief AI Officer's process settles the close cases.
Does a human reviewer make an agent low-risk?
Not by itself. Section 4(a) of M-25-21 says a high-impact determination "is possible whether there is or is not human oversight for the decision or action." What decides it is whether the AI's output "serves as a principal basis for decisions or actions" with a legal, material, binding or significant effect on rights, access to programs or services, safety, critical infrastructure or sensitive assets.
Footnote 27 adds the other side: AI can sit inside a high-impact process without being high-impact if its output doesn't actually serve as a principal basis for the decision. So the honest question about a reviewer is how much they rely on the agent. A caseworker who checks the agent's work against the file is different from one who clicks approve on a summary.
Section 7 matters more for agents than for chat tools. It counts risk whether the AI "merely informs the decision or action, partially automates it, or fully automates it," and whether or not it is apparent that anything happened. An agent triaging a shared inbox makes decisions every time it leaves a message alone. Testing usually covers what the agent did; the risk review has to cover what it didn't do as well.
For uses that are high-impact, the seven minimum practices in Section 4(b) apply (our M-25-21 explainer walks through all of them and the waiver and pilot exemptions). Two read differently for agents. Ongoing monitoring must detect "changes to an AI system after deployment," and for an agent a new tool connection or a rewritten instruction is that kind of change. Practice (v) asks for human oversight, intervention and accountability, plus a fail-safe "when practicable," and footnote 31 accepts that some safety actions have to be immediate and automated while still requiring an oversight and accountability process for them.
What does GSA's AI clause ask of agentic systems?
GSA's clause 552.239-7001 names agents directly. GSAR 539.71 tells contracting officers to insert it when buying a "Large Language Model (LLM), generative assistant, chatbot, agentic system" or similar system where LLM functionality is a material feature and government data goes to or comes from the model. Paragraph (a)(1)(i) of the clause repeats that list.
Paragraph (f)(4), "Human oversight, intervention, and traceability," is the part agent builders will notice. Where the model uses "intermediary processing (reasoning, retrieval, or agentic steps)," it must make a summary of the steps it records available through the user interface where there is one, a documented API, and an administrative audit trail. To the extent the model performs and records them, the summary covers intermediate actions and decision points, model routing decisions, data retrieval methods including "tool calls, or agent actions," and any human reviewer's access to government data. Paragraph (f)(4)(iii) limits this to "a summary of recorded steps, not a faithful explanation of the model's internal reasoning."
That is useful to agencies even outside GSA contracts, because it describes a record a reviewer or an appeal can use. Whether the clause applies to a particular order is the contracting officer's call; our GSA AI clause explainer covers its scope and the rest of its requirements.
Where should human approval sit?
At actions that are hard to reverse, leave the agency, or change someone's status, money or access. Steps that are internal, reversible and easy to check later, such as gathering documents or drafting a response, are reasonable for an agent to do alone.
NIST's proposed tenet on human-in-the-loop triggers frames this as organization-defined "risk thresholds and tolerances" that send an action to "the correct authority for escalated decisions," with enough context for the reviewer to judge it. The same tenet warns about "consent fatigue where human escalation becomes so frequent that agentic actions are approved habitually, rather than through careful risk consideration."
Approval queues tend to fail that way. A reviewer who sees dozens of sound proposals in a row starts approving on sight. Track how often reviewers change or reject what the agent proposes; if that almost never happens, either routine work is being escalated or the review has turned into a formality.
What has NIST proposed for agent identity?
On October 27, 2026, NIST published ten design tenets for agent identity, authentication and authorization, drawn from public comments on its NCCoE agent identity and authorization project. NIST calls them "an initial set" and says "not all of these design tenets will be immediately fulfilled by the current state of standards and technology." The table pairs each one with a question to ask before a pilot.
| NIST tenet | What it asks for | Question for your pilot |
|---|---|---|
| 01 Distinct Agent Identification | Agents get their own verifiable identity, separate from people and service accounts | Does the agent sign in as itself, or as a person? |
| 02 Agent Linking, Delegation & Attenuation | Actions link to whoever started the task; sub-agents never claim more authority than the parent | Can you trace any action to the person or office that tasked it? |
| 03 Least & Zero Standing Privilege | No persistent rights when idle; access limited to the task | What can the agent reach between tasks? |
| 04 Short-Lived, Dynamic & Revocable Authorization | Just-in-time, time-bounded access; no long-lived bearer tokens or static secrets | Is there an API key sitting in a configuration file? |
| 05 Human-in-the-Loop Triggers | Risk thresholds route actions to the right person, with context | Which actions always need approval, and from whom? |
| 06 Mandates and Constraints | The task originator can issue signed statements of intended outcome and limits | Is the task's scope written where downstream systems can check it? |
| 07 Architectural Separation of Policy from Reasoning | What the agent may do is enforced outside the model | Could text in a document the agent reads widen its permissions? |
| 08 Deterministic Access Decisions | Deterministic systems are the primary mechanism for access decisions | What says yes when the agent asks for access? |
| 09 Continuous Monitoring | Agent-specific metrics and alerts for unusual behavior | Would you notice if its behavior drifted next month? |
| 10 Immutable Evidence | Append-only, tamper-evident records the agent can't reach | Can the agent edit or delete its own logs? |
Tenet 07 explains why: large language models take data and instructions through a single stream, so a prompt injection can't be ruled out inside the model and has to be contained by the architecture around it. "Guardrails alone are insufficient," NIST writes. Its August 27, 2026 post makes the plainer point that people handing their own credentials to agents "has quickly become a common pattern," and calls credential sharing "a bad idea in all contexts." The same post says many of these problems "are not new": most of the work extends identity, privilege and logging practice they already run to a new kind of account.
Before the first agent pilot
Start with the action inventory, because every later decision depends on it: each tool and system the agent can call, which actions can be undone, and which ones touch a person's case or leave the agency. That list sets the approval thresholds, tells the Chief AI Officer's process what it is assessing, and gives the security review its boundary.
Next, decide the risk tier on what the agent's actions decide, with footnote 27 in mind rather than the presence of a reviewer, and name the things the agent can decline or leave undone so they get tested too. Give the agent its own identity and short-lived, task-scoped access, never a person's credentials. Keep its records somewhere it can't modify, detailed enough that someone can explain any action to the person who appeals it. If the purchase goes through a GSA vehicle, raise the clause's step summary with the contracting officer early, since it shapes what the vendor has to make available.
Our analytics and AI services page describes how we approach AI governance and engineering for agencies.
The Bottom Line
Treat an agent as AI that acts under its own identity, assess its risk on what its actions decide, and put human approval where an action is hard to undo. If GSA's AI clause applies to the purchase, ask the vendor early what summary of recorded steps it will make available.
FAQ
Is robotic process automation the same as agentic AI?
Not under OMB's definition. M-25-21 excludes "robotic process automation or other systems whose behavior is defined only by human-defined rules." An agent that uses a model to choose its next step likely falls inside the definition, and the agency's Chief AI Officer process makes the call.
Does OMB M-25-21 apply to AI agents in national security systems?
No. Section 1(c) says the memo "does not cover AI when it is being used as a component of a National Security System." Footnote 8 says those systems "are governed through other policy" and points to existing guidance such as the Department of Defense's Responsible AI Strategy and Implementation Pathway.
Are NIST's agent identity design tenets mandatory?
No. They appeared in a NIST Cybersecurity Insights blog post on October 27, 2026 as "an initial set of ten design tenets." NIST says they will guide its National Cybersecurity Center of Excellence (NCCoE) demonstrations and that not all of them can be met with current standards and technology.
What is agent hijacking?
It is an attacker getting an agent to act for them. NIST's January 2026 request for information said AI agent systems "may be susceptible to hijacking, backdoor attacks, and other exploits." One common route is prompt injection, where instructions hidden in data the agent reads steer what it does; NIST's design tenets answer it with least privilege and by keeping access decisions outside the model.
Does an AI agent need its own ATO?
M-25-21 footnote 29 says agencies must keep following applicable authorization to operate requirements from OMB Circular A-130 for AI systems. Whether an agent needs a new authorization or fits an existing one depends on the system boundary, and the authorizing official decides. Either way, the agent's tools, credentials and the systems it can change belong in the security review.
Sources
- OMB Memorandum M-25-21, Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (April 3, 2025), Sections 1(c), 4(a), 4(b), 5 and 7, footnotes 8, 27, 29 and 31
- GSA, RGO-2026-01 deviation and GSAR text, 539.71 and clause 552.239-7001 paragraphs (a) and (f)(4)
- NIST Cybersecurity Insights, Design Tenets for Agent Identity Management Systems (October 27, 2026)
- NIST Cybersecurity Insights, Back to the Future: Why Agentic AI Needs a Strong Identity Foundation (August 27, 2026)
- Federal Register, NIST CAISI, Request for Information Regarding Security Considerations for Artificial Intelligence Agents (January 8, 2026)
How we researched this. Every number, date and requirement here is checked against the sources listed above, primary documents first, and the post is fact-checked again before publication. When a rule, date or status changes, we update the post and log the change below. Read our editorial standards or send a correction.





