Glossary — Agentic AI
What is an Autonomous Agent?
An autonomous agent is an AI system capable of operating independently over extended periods, making decisions and taking actions without requiring human approval for each step.
WHY IT MATTERS
Autonomy in AI agents exists on a spectrum. At one end, a human approves every action. At the other, the agent operates entirely independently — setting its own goals, deciding on strategies, and executing without oversight.
Most practical autonomous agents sit somewhere in the middle. They can handle routine decisions independently but escalate novel or high-stakes situations to humans. The challenge is defining where that boundary sits.
In financial contexts, autonomy means the agent can execute transactions without a human clicking 'confirm.' This is essential for speed-sensitive operations like DeFi trading but creates risk — an autonomous agent with unrestricted access can drain a wallet in seconds if something goes wrong.
HOW POLICYLAYER USES THIS
PolicyLayer enables safe autonomy by letting developers define exactly what an agent can do independently. Set per-transaction limits, rolling budgets, and approved recipients — the agent operates autonomously within those boundaries, without needing human approval for every transaction.