Ontological Framework

How AI relates to the Business

The class of any business is determined not by how much AI it uses, but by what the AI is relative to the organization.

Business
Human operates
Model foundation
Customers Suppliers
Stakeholders Market
Class 0
Traditional
Class 1
AI-Equipped
Class 2
AI-Augmented
Class 3
AI-Extended
Class 4
AI-Native
Class 5
Autonomous AI
↓ Read the framework
Entities
The irreducible objects. Every AI-business configuration is a composition of these entities and the interfaces that connect them.
Business
An organization with boundaries, processes, inputs, outputs, and external interfaces. The container.
Human
A node that reasons, decides, acts, and bears accountability. Can interface with any other entity and the external world.
Model
The foundational capability. General-purpose reasoning, broad knowledge, and adaptability. Invoked on demand — the engine that powers everything above it.
Agent
A model situated within the business — given domain knowledge, tools, persistent state, and a role. Its degree of autonomy is not inherent; it emerges from where the agent is positioned.
What the Tags Mean
Each entity carries a set of defining traits. Click any tag above to jump here.
Business
bounded
Has defined edges — legal, contractual, operational. An inside and an outside.
has interfaces
Connects to the external world through specific touchpoints: customers, vendors, regulators.
has inputs / outputs
Consumes resources and produces value — revenue, products, services, data.
Human
adaptive
Can learn, reframe, improvise. Changes approach based on novel context.
accountable
Bears responsibility for decisions and outcomes. Can be held liable.
goal-directed
Acts toward objectives with intention and judgment, not just execution.
Model
general-purpose
Broad reasoning capability, not specialized to any single domain or task.
on-demand
Invoked when needed, returns a result, has no persistent presence or state.
foundational
The base capability layer — everything above (agents, workflows) is built on it.
Agent
situated
Placed within the business — given a role, a position in the network, a context.
stateful
Maintains persistent context across interactions — memory, history, accumulated knowledge.
domain-aware
Equipped with specific domain knowledge — processes, terminology, constraints of its field.
role-bound
Operates within a defined scope — responsibilities, permissions, and boundaries.
Types of Interfaces
Interfaces are first-class ontological objects. The distribution of interface types determines the class.
H ↔ H
Human–Human
Delegation, collaboration, handoffs, reporting. The default wiring.
H ↔ A
Human–Agent
Direction, delegation, review, approval, escalation.
A ↔ A
Agent–Agent
Orchestration and handoff without human mediation.
H ↔ Ext
Human–External
Sales, support, negotiation. Human at the boundary of the firm.
A ↔ Ext
Agent–External
Automated transactions, conversations, API exchange. Agent at the boundary.
Gov → ✱
Governance
Oversight, constraint, audit. Principals bounding operators.
From Traditional to Autonomous AI
Each class is a distinct structural relationship. The diagrams show the essential pattern — the entities, the interfaces, and their position relative to the business boundary.
Class 0
Traditional
"No AI in the loop"
An all-human network. People hold every role, every interface, every boundary touchpoint. This is the structure AI enters.
Remove AI → Nothing changes.
Humanoperates
Class 1
AI-Equipped
"AI on the side"
The human network is unchanged. Individuals invoke AI products — ChatGPT, Claude, Copilot — on demand. Powerful, but external to the network. No interfaces change.
Remove AI → People slow down, nothing breaks.
HumanoperatesChatGPTClaude, etc.invoke
Class 2
AI-Augmented
"AI in the team"
The model is situated — given a role, domain knowledge, tools, and persistent state. It becomes an agent: a participant in the network. The human directs it. The H↔A interface emerges. Autonomy is not yet required.
Remove AI → Capacity drops, humans can cover.
HumandirectsAgentdirectedH↔A
Class 3
AI-Extended
"AI at some doors"
The agent takes over some boundary interfaces. Because it now faces the outside world without a human mediating, autonomy emerges — the position demands it. The human retains other boundaries and remains the principal.
Remove AI → Some channels go dark, core survives.
HumanprincipalAgentautonomousH↔ExtA↔Ext
Class 4
AI-Native
"AI runs the shop"
The agent holds all boundary interfaces and runs operations. Autonomy now extends inward — the agent directs workflows. The human is still inside the machine: managing, configuring, handling exceptions. They know how the work is done.
Remove AI → Operations halt. Humans can rebuild.
AgentoperatesHumanmanagesescalateA↔ExtA↔Ext
Class 5
Autonomous AI
"AI is the business"
The agent network and the business are coextensive. The agent network is self-coordinating. The human is outside the machine: setting strategy, defining constraints, auditing outcomes — but not managing or configuring.
Remove AI → The entity ceases to exist.
BUSINESS ≡ AGENT NETWORKAgentself-coordinatingHumangovernsoutside the machine
Native vs Autonomous — The Critical Distinction
AI-Native: Humans are inside the machine. They manage agents, handle exceptions, reconfigure workflows. Remove the AI and operations halt — but the people know how to do the work.
Autonomous AI: Humans are outside the machine. They set strategy and audit outcomes. The agent network is self-coordinating. Remove the AI and there's nothing left — no one knows how to do the work manually.
The test: "Could the humans in this company run it without the agents?"
Native → Yes, painfully.   Autonomous → No.
In Conversation
"We're Traditional — no AI in the loop. Everything runs on people, process, and spreadsheets."
"Most enterprises are AI-Equipped — same org, same process, people just use copilots on the side."
"We became AI-Augmented when we gave agents their own tasks on the sprint board."
"We're AI-Extended — agents handle support and procurement, but sales is still all human."
"That startup is AI-Native — agents run everything, two engineers keep them tuned."
"A true Autonomous AI company doesn't need an AI strategy. It needs a governance strategy."
Ideas That Underpin the Framework
Model → Agent: Situation, Not Promotion
A Model is the foundational reasoning engine — general-purpose, powerful, invoked on demand. An Agent is what happens when you situate that model within a business: give it a role, persistent context, domain knowledge, and tools.
The boundary between Class 1 and Class 2 is this act of situation — the model goes from being an external utility to an embedded participant with a place in the network.
Autonomy is Emergent, Not Inherent
An agent doesn't start autonomous. In Class 2, it's directed — the human tells it what to do. Autonomy emerges from position: when an agent is placed at a boundary interface (Class 3), it must act independently because there's no human mediating that interface. The architecture forces the autonomy.
Class 2 — Agent is directed. Human says what to do.
Class 3 — Agent becomes autonomous at the boundary. It must decide on its own because it faces outward.
Class 4 — Agent is autonomous internally. Directs workflows, humans handle exceptions.
Class 5 — Agent network is self-coordinating. Humans govern, not manage.
A Note on Scheduled Autonomy
There is a category of agents that exhibit autonomy through scheduling — given a heartbeat, waking at intervals to poll for conditions, execute routines, or perform maintenance without human prompting. This is a real form of autonomous behavior.
However, this framework deliberately excludes polling or schedule-based autonomy. The classes here describe relational autonomy — autonomy that emerges from an agent's position in the organizational network — not temporal autonomy driven by a cron job or heartbeat. A scheduled agent can run inside any class from 2 upward. It doesn't change the class.
The progression tracks three shifts: what the AI is — from foundational engine, to situated participant, to operational core; where it sits — from outside, to inside, to coextensive with the boundary; and what emerges — autonomy is not designed in, it's demanded by position. Place an agent at a boundary and it must act independently. Make it the core and it must self-coordinate. The architecture creates the autonomy.
Prepared by Alex Collet & Akhil Aryanv9 · February 2026