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EU AI Act: Not High Risk

Works Council Coordination Agent

Most failed dismissals fall on a coordination error, not a legal one - the agent finds the right consultation level for every HR measure, starts the correct deadline, and keeps an audit-trail-secure record, so a defect never hands the Employment Tribunal an easy protective award.

Works council coordination: UK ICE Regulations 2004 classification, TULRCA Section 188 + ACAS Code deadlines, GDPR Art. 22 and AI Act Annex III(4)(b) - audit-trail-secured consultation.

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A selection from over 5,000 projects in 25 years of software development

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Every HR measure can trip a different consultation regime - ICE Regulations 2004 for 50-plus undertakings, TULRCA Section 188 for 20-plus redundancies, the ACAS Code for individual cases - and the agent identifies which one applies before the clock starts.

Most of the coordination is deterministic, so the agent runs it on rules: it classifies which regime applies (ICE Regulations 2004 for 50-plus undertakings, TULRCA Section 188 for 20-plus redundancies, the ACAS Code for individual consultation, TUPE on transfer), calculates the 30- or 45-day deadline from receipt of complete documents, and manages escalation. Substantive consultation with employee representatives stays human; the ML layer only checks document completeness and flags expiring deadlines.

Outcome: A defective Section 188 consultation exposes the employer to a Section 189 protective award of up to 90 days' gross pay per affected employee, on top of a 25 per cent ACAS Code uplift under Section 124A, ICO enforcement of up to 4 per cent of global turnover (or 17.5 million pounds), and uncapped discrimination claims once the Equality Act Section 136 reverse burden of proof applies. The agent's value is the auditable consultation chain that closes those gaps.

65% Rules Engine
14% AI Agent
21% Human

Works council coordination therefore has to be deterministic and audit-trail-secured, with a human owning the substantive consultation - which is how the steps break down:

A dismissal that fails consultation costs a TULRCA Section 188 protective award of up to 90 days' gross pay per affected employee. The agent runs the consultation framework so that formal defect never happens.

Works council coordination as compliance obligation

A dismissal without proper consultation with employee representatives is not automatically void in UK law as it is in Germany. But the consequences are severe: TULRCA Section 189 protective award up to 90 days gross pay per affected employee at Employment Tribunal, Section 124A ACAS Code 25 per cent uplift, and uncapped Equality Act discrimination compensation if the redundancy selection is challenged. UK Employment Tribunals receive hundreds of thousands of claims annually. A substantial proportion of these challenge formal defects in consultation procedures - because these defects are the most reliable route to higher tribunal awards.

The problem is not a knowledge problem. HR departments know the rules. The problem is a coordination problem.

Multiple consultation levels with different deadlines

UK employment law has multiple consultation levels with different deadlines and different consequences for breaches:

Level                       Statute              Deadline           Consequence for breach
─────────────────────────────────────────────────────────────────────────────────────────
Individual consultation     ACAS Code            Reasonable          Section 124A 25% uplift
Section 188 (20-99)         TULRCA              30 days minimum     90 days gross pay per employee
Section 188 (100+)          TULRCA              45 days minimum     90 days gross pay per employee
TUPE Regulation 14          TUPE 2006           28 days before      Tribunal claim
ICE Regulations             ICE 2004            Negotiated period    Unlawful act
EWC (cross-border)          Dir 2009/38/EC      Negotiated period    EU enforcement

The challenge is not to know this table. The challenge is, with every individual HR measure - dismissal, recruitment, transfer, grading, working time change - to identify the correct level within seconds, gather the correct documents, and start the correct deadline. In a 1,500-employee company, a dozen consultation procedures may run simultaneously in a single week.

Each of these procedures has a different trigger, different documents, different deadlines, and different escalation paths. And each individual procedure is coordinated in most companies by email, paper, or oral arrangement. There is no central deadline calendar. There is no automatic completeness check of documents. There is no system that recognises whether the intended transfer of an employee triggers a Section 188 consultation obligation or only individual ACAS Code consultation.

Why formal defects upset dismissals

Section 188 TULRCA is the critical touchpoint between HR and Trade Union representatives or elected employee representatives. The requirements are clearly formulated: When 20-plus redundancies are proposed within a 90-day period, the employer must consult meaningfully with appropriate representatives about ways to avoid the dismissals, ways to reduce the number, and ways to mitigate the consequences. The minimum consultation period is 30 days for 20-99 redundancies and 45 days for 100-plus.

In practice, it fails at three points.

First: incomplete information. The employer must provide all reasons that lead to the proposed redundancies. Skeleton or outline-only descriptions are not sufficient under Employment Tribunal case law. The representatives must be able to form an opinion without their own research. If a relevant detail is missing - such as the dependants of the affected when discussing selection criteria - the entire consultation is defective.

Second: incorrect deadline calculation. The 30/45-day minimum starts with receipt of complete information by representatives. Not with sending. Not with the invitation to meeting. With receipt of the complete documents. A dismissal pronounced one day too early is vulnerable to protective award.

Third: post-event reasons. Reasons for which representatives were not consulted cannot be added later in the Employment Tribunal proceeding. What is missing from consultation, is missing in the Tribunal.

Each of these errors is avoidable. None of them requires legal judgment. All three are coordination errors: The correct information was available but not completely passed on. The deadline was known but incorrectly calculated. The reason existed but was not documented.

ICE Regulations 2004 bottleneck for 50-plus undertakings

Section 188 is the visible scene, but not the most common. ICE Regulations 2004 govern employee representative involvement for undertakings with 50-plus employees. Regulation 7 negotiation rights, Regulation 8 default I and C agreement, Regulation 16 information requirements. In undertakings with active I and C agreements, every workplace change requires consultation.

The representatives have a negotiated consultation period. If they raise concerns, the employer must consider them. If consultation is exhausted without agreement, the employer can proceed - but the consultation outcome is recorded. The agent triggers ICE Regulations consultation workflow automatically, manages the negotiated consultation period, and documents the consultation outcome.

For UK groups operating EU subsidiaries, the European Works Council Directive 2009/38/EC adds additional cross-border consultation obligations. The agent manages this hierarchy and triggers the appropriate body.

The rule engine finds the correct UK statute

The Decision Layer decomposes every consultation procedure into individual decision steps and defines for each step: Human, Rule, or AI. The assignment of the consultation level - which statute applies, which documents are needed, which deadline runs - is Rule. The completeness check of documents against a checklist is AI-assisted. The deadline monitoring is Rule. The decision on how to deal with employee representative objection remains with the Human.

Specifically, the procedure changes in four places.

Consultation classification happens automatically. Every planned HR measure is checked against UK statutes. The system detects whether ACAS Code individual consultation, TULRCA Section 188 collective consultation, TUPE Regulation 14, ICE Regulations 2004, or European Works Council Directive applies. Not the HR officer must find the correct statute. The rule engine finds it.

Documents are checked against a checklist. For each consultation level and each measure type, a defined list exists: What information must employee representatives receive? Are the social data of the affected complete? Is the dismissal reason correctly specified? Are the reasons fully drafted instead of only outlined? The check happens before transmission to representatives, not after.

Deadlines are tracked from the moment of transmission. The 30-day minimum for Section 188, the 45-day minimum for 100-plus, the 28-day TUPE notice - each deadline runs with documented start time and automatic escalation on expiry. Representatives have allowed their deadline to expire? The system documents the assumption of consent. Representatives have objected? The HR responsible is immediately informed, with next steps and relevant deadlines for ACAS Early Conciliation.

The entire procedure is documented audit-trail-secure. Every step, every document, every deadline, every statement, every decision. When an employee challenges the dismissal six months later and the solicitor disputes proper consultation, the complete procedural evidence is available. Not as reconstructed chronology from email trails, but as audit trail containing every individual step with timestamp and proof. HMRC PAYE retention requires 6 years, ICO Records Management Code applies.

The agent that serves both sides

Most agents in HR work for one side. The Works Council Coordination Agent is different. It professionalises the formal framework - and both sides benefit.

HR benefits because no procedures fail on formal defects. Because document preparation takes hours instead of days. Because the risk of an unfavourable Employment Tribunal protective award due to defective consultation goes to zero.

Employee representatives benefit because they receive complete documents. Because their deadlines are correctly calculated and not unilaterally interpreted by the employer. Because the documentation creates transparency they previously had to demand. Cross-reference UK ICE Regulations 2004 negotiated I and C agreement with audit-trail access for employee representatives is standard.

The consultation classification engine - which statute for which measure, which documents, which deadline - is not an isolated function. Every agent in the Decision Layer that triggers a measure with consultation relevance uses the same logic. Workforce-Planning-Agent Cluster #58 triggers Section 188 on redundancy. The Onboarding-Agent triggers consultation on recruitment. The Compensation-Benchmarking-Agent Cluster #26 triggers consultation on remuneration changes. The deadline calendar, the checklists, and the audit trail become shared infrastructure.

Micro-Decision Table

Who decides in this agent?

14 decision steps, split by decider

65%(9/14)
Rules Engine
deterministic
14%(2/14)
AI Agent
model-based with confidence
21%(3/14)
Human
explicitly assigned
Human
Rules Engine
AI Agent
Each row is a decision. Expand to see the decision record and whether it can be challenged.
UK ICE Regulations / TULRCA Section 188 consultation classification Does the agent automatically classify which consultation regime applies - the ICE Regulations for 50-plus undertakings, TULRCA Section 188 for 20-plus redundancies, the ACAS Code for individual cases, or TUPE Regulation 14 on transfer? Rules Engine

Classification maps the measure type to one of four consultation levels and its deadline, guided by Employment Tribunal case law and any group-level European Works Council obligation. The rule is deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Document completeness check against ACAS Code checklist Is the completeness and clarity of documents checked against ACAS Code checklist AI-assisted? AI Agent Auditor

An AI-assisted check tests the documents against the checklist - the ACAS Guide bars skeleton outlines, and the social data behind selection criteria must be complete. The model output is a check, not the decision; the responsible HR officer validates it.

Decision Record

Model version and confidence score
Input data and classification result
Decision rationale (explainability)
Audit trail with full traceability

Challengeable: Yes - fully documented, reviewable by humans, objection via formal process.

Challengeable by: Auditor

Deadline calculation from receipt of complete documents Is the deadline calculated automatically from receipt of the complete documents - 30 days for 20-99 redundancies and 45 days for 100-plus under Section 188, 28 days before a TUPE transfer, or the negotiated ICE Regulations period? Rules Engine

The deadline runs from receipt of the complete documents, not from sending - the distinction that decides Section 188 cases - and the agent escalates automatically on expiry. The calculation is deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Document delivery to employee representatives with documented timestamp Are the documents delivered electronically or in writing to employee representatives with documented timestamp after HR approval? Rules Engine

Once HR approves, documents go to the representatives with a recorded timestamp and an audit-trail entry, retained for six years under the ICO Records Management Code. The step is deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Deadline monitoring with automatic escalation on expiry Is the deadline monitored so that expiry escalates automatically to HR leadership, with silence recorded as assumed consent? Rules Engine

The agent monitors the running deadline and escalates to HR leadership the moment it expires, because a Section 188 breach carries a protective award of up to 90 days' gross pay per employee. The monitoring is deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Employee representative statement evaluation (consent, concerns or objection) How is the representatives' statement - consent, concerns or objection - substantively evaluated? Human

Weighing a representative's statement - consent, concerns or objection - is the heart of meaningful consultation under Section 188(7), where a shortfall draws a 25 per cent uplift under Section 124A. The decision must be human.

Decision Record

Decider ID and role
Decision rationale
Timestamp and context

Challengeable: Yes - via manager, works council, or formal objection process.

Escalation on objection with Employment Tribunal preparation How is the escalation conducted on objection from employee representatives with Employment Tribunal preparation? Human

An objection from representatives is for HR leadership and legal to handle, with ACAS Early Conciliation mandatory before any tribunal and a Section 124A uplift in play. The decision must be human.

Decision Record

Decider ID and role
Decision rationale
Timestamp and context

Challengeable: Yes - via manager, works council, or formal objection process.

TULRCA Section 188 consultation with meaningful information, measures and reasons Does the Section 188 consultation carry the required content - full reasons, and ways to avoid, reduce and mitigate the redundancies? Rules Engine

A Section 188 consultation has to carry meaningful information - the reasons in full, not skeleton outlines, along with ways to avoid, reduce and mitigate the redundancies. The required content is rule-bound, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

UK Equality Act Section 19 indirect discrimination audit Is the Equality Act Section 19 audit of consultation procedures quarterly performed on disparate impact across protected characteristics? Rules Engine

A statistical Section 19 audit tests the consultation for disparate impact across protected characteristics against the 80 per cent rule. The audit trail is mandatory because Section 136 reverses the burden of proof. Deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

UK GDPR Article 22 prohibition of solely automated decisions Is UK GDPR Article 22 prohibition of solely automated decisions with legal effects automatically blocked when AI assesses dismissal grounds? Rules Engine

Where AI assesses dismissal grounds, UK GDPR Article 22 is enforced by auto-blocking any outcome with legal effects until a human decides. The CJEU Schufa ruling (C-634/21) confirms the principle applies to derived scores. Deterministic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

ACAS Early Conciliation mandatory pre-tribunal workflow How is the ACAS Early Conciliation workflow triggered before any Employment Tribunal claim with 6-week conciliation period? Human

ACAS Early Conciliation is mandatory before any tribunal claim under Section 18A of the Employment Tribunals Act 1996, with a 25 per cent uplift under Section 124A for non-compliance. Conciliation is a human exchange, so the decision must be human.

Decision Record

Decider ID and role
Decision rationale
Timestamp and context

Challengeable: Yes - via manager, works council, or formal objection process.

Group-level European Works Council consultation for cross-border measures Is European Works Council consultation triggered for cross-border measures affecting UK groups operating EU subsidiaries deterministically classified? Rules Engine

A cross-border measure in a UK group with EU subsidiaries can trigger European Works Council consultation under Directive 2009/38/EC. Detecting that trigger is rule-bound, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Audit-trail secure documentation 6-year retention Is each consultation procedure documented audit-trail-secure and retained for six years, matching HMRC PAYE records and the ICO Records Management Code? Rules Engine

Each consultation is documented audit-trail-secure and retained for six years, matching HMRC PAYE records, the Limitation Act 1980 window and the ICO Records Code. The documentation is automatic, so Decision-Type R.

Decision Record

Rule ID and version number
Input data that triggered the rule
Calculation result and applied formula

Challengeable: Yes - rule application verifiable. Objection possible for incorrect data or wrong rule version.

Auditor sampling review consultation procedure plausibility Are statistical samples reviewed by auditor for consultation procedure plausibility under ISA (UK) 530? AI Agent Auditor

An auditor samples consultation procedures for plausibility under ISA (UK) 530. The model only surfaces the sample; the auditor's human judgement is the decision.

Decision Record

Model version and confidence score
Input data and classification result
Decision rationale (explainability)
Audit trail with full traceability

Challengeable: Yes - fully documented, reviewable by humans, objection via formal process.

Challengeable by: Auditor

Decision Record and Right to Challenge

Every decision this agent makes or prepares is documented in a complete decision record. Affected employees can review, understand, and challenge every individual decision.

Which rule in which version was applied?
What data was the decision based on?
Who (human, rules engine, or AI) decided - and why?
How can the affected person file an objection?
How the Decision Layer enforces this architecturally →

Does this agent fit your process?

We analyse your specific HR process and show how this agent fits into your system landscape. 30 minutes, no preparation needed.

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Governance Notes

EU AI Act: Not High Risk
By default this is not a high-risk system under the EU AI Act: it coordinates and documents consultation without making any decision over an employment relationship. It becomes conditionally high-risk only when the optional module that assesses dismissal grounds or selects redundancies with AI is switched on - which then triggers Annex III(4)(b), a mandatory DPIA under Article 35, deployer obligations under Article 26, and a guaranteed human decision. The compliance weight comes from UK employment law. A defective TULRCA Section 188 consultation can cost a protective award of up to 90 days' gross pay per affected employee, a 25 per cent uplift under Section 124A, ICO enforcement of up to 4 per cent of global turnover (or 17.5 million pounds), uncapped Equality Act compensation and an EHRC investigation. The agent handles the deterministic work - consultation classification, document completeness, deadline management, the audit trail and the group-level European Works Council hierarchy. A human still owns the substantive evaluation of representatives' statements, the response to an objection and any tribunal preparation. The agent serves both sides: it professionalises the framework without replacing the substantive consultation.

Assessment

Agent Readiness 66-73%
Governance Complexity 68-75%
Economic Impact 51-58%
Lighthouse Effect 41-48%
Implementation Complexity 46-53%
Transaction Volume Weekly

Prerequisites

  • Procedures Documentation under DPIA Article 35 UK GDPR + ICO Employment Practices Code
  • Digital communication channel to employee representatives with audit-trail
  • Checklists per consultation level and measure type per UK statute
  • Deadline calendar per UK statute with automatic escalation
  • Document management system with 6-year retention HMRC PAYE + UK GDPR
  • Group-level European Works Council hierarchy model for cross-border groups
  • ICE Regulations 2004 agreement for undertakings with 50-plus employees
  • DPIA for AI-completeness check of documents

Infrastructure Contribution

The consultation engine is shared infrastructure for the wider HR Decision Layer. Its classification logic, deadline calendar, completeness check and audit trail are reused by the Onboarding, Workforce-Planning, Compensation-Benchmarking, Performance-Review, Pre-Hire-Due-Diligence, Sick-Leave and Travel-Expense agents, each of which can trigger a consultation duty. The UK GDPR Article 22 block becomes the foundation for every AI-decision HR agent, the ACAS Early Conciliation workflow the standard for any dismissal-adjacent agent, and the conditional Annex III(4)(b) high-risk template the pattern other dismissal-decision-adjacent agents inherit.

What this assessment contains: 9 slides for your leadership team

Personalised with your numbers. Generated in 2 minutes directly in your browser. No upload, no login.

  1. 1

    Title slide - Process name, decision points, automation potential

  2. 2

    Executive summary - FTE freed, cost per transaction before/after, break-even date, cost of waiting

  3. 3

    Current state - Transaction volume, error costs, growth scenario with FTE comparison

  4. 4

    Solution architecture - Human - rules engine - AI agent with specific decision points

  5. 5

    Governance - EU AI Act, works council, audit trail - with traffic light status

  6. 6

    Risk analysis - 5 risks with likelihood, impact and mitigation

  7. 7

    Roadmap - 3-phase plan with concrete calendar dates and Go/No-Go

  8. 8

    Business case - 3-scenario comparison (do nothing/hire/automate) plus 3×3 sensitivity matrix

  9. 9

    Discussion proposal - Concrete next steps with timeline and responsibilities

Includes: 3-scenario comparison

Do nothing vs. new hire vs. automation - with your salary level, your error rate and your growth plan. The one slide your CFO wants to see first.

Show calculation methodology

Hourly rate: Annual salary (your input) × 1.3 employer burden ÷ 1,720 annual work hours

Savings: Transactions × 12 × automation rate × minutes/transaction × hourly rate × economic factor

Quality ROI: Error reduction × transactions × 12 × EUR 260/error (APQC Open Standards Benchmarking)

FTE: Saved hours ÷ 1,720 annual work hours

Break-Even: Benchmark investment ÷ monthly combined savings (efficiency + quality)

New hire: Annual salary × 1.3 + EUR 12,000 recruiting per FTE

All data stays in your browser. Nothing is transmitted to any server.

Works Council Coordination Agent

Initial assessment for your leadership team

A thorough initial assessment in 2 minutes - with your numbers, your risk profile and industry benchmarks. No vendor logo, no sales pitch.

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Frequently Asked Questions

Does the agent replace consultation with employee representatives?

No. The agent coordinates the formal process: correct consultation level, complete documents, correctly calculated deadlines, audit-trail-secure documentation. The substantive consultation and agreement with employee representatives remains human. The agent professionalises the framework - the consultation outcome remains human. Cross-reference Decision Layer with clear separation Rule vs Human.

How does deterministic consultation classification work?

The rule engine finds the correct statute so the HR officer does not have to. It checks every planned HR measure - dismissal, recruitment, transfer, grading, a working-time change or a remuneration design - against UK law, then detects which regime applies: the ICE Regulations for 50-plus undertakings, TULRCA Section 188 for 20-plus redundancies, the ACAS Code for individual consultation, or TUPE Regulation 14 on transfer. From there it sets which deadline runs and which body is responsible, from local representatives up to a European Works Council. Employment Tribunal case law on meaningful consultation is the reference standard.

What happens with TULRCA Section 188 non-compliance?

Section 189 protective award up to 90 days gross pay per affected employee at Employment Tribunal - constant Employment Tribunal line. Cross-reference Junk-style cases on consultation prerequisite. ACAS Early Conciliation mandatory pre-tribunal. The most common non-compliance reasons are incomplete information, incorrect deadline calculation, or post-event reasons. The agent checks document completeness against ACAS Guide requirement (no skeleton outlines), calculates the deadline from receipt of complete documents, and documents every step audit-trail-secure. Section 124A 25 per cent uplift for ACAS Code non-compliance applies.

How does the consultation escalation on objection work?

If employee representatives object during Section 188 consultation, the employer must keep consulting until the representations have been meaningfully considered. Once consultation is exhausted without agreement, ACAS Early Conciliation triggers automatically. The agent then assembles the Tribunal-ready documentation, because pre-action preparation has to weigh the Section 189 protective award against the Section 124A uplift, the Equality Act discrimination exposure and the UK GDPR Article 22 prohibition all at once.

How does the agent integrate with other HR agents?

The Works Council Coordination Agent is infrastructure for the entire HR Decision Layer. The Onboarding-Agent triggers consultation on recruitment, the Workforce-Planning-Agent triggers Section 188 on redundancy, the Compensation-Benchmarking-Agent triggers consultation on remuneration changes, the Sick-Leave-Processing-Agent triggers consultation on health and safety. Cross-reference European Works Council hierarchy for UK groups operating EU subsidiaries.

Can employee representatives use the agent themselves?

Yes. The agent serves both sides: HR uses it for document preparation and deadline management, employee representatives use it for deadline monitoring and audit-trail access. Joint use increases transparency and reduces conflicts. UK ICE Regulations 2004 negotiated I and C agreement with audit-trail access for employee representatives is standard.

What retention obligations apply to consultation records?

Consultation records are kept for six years, the period set by HMRC PAYE retention, the Limitation Act 1980 window for most contract claims and the ICO Records Management Code; company records under the Companies Act 2006 run to seven years. A live Employment Tribunal claim extends retention until judgment is final, and the Article 17 right to erasure only bites once the statutory periods have expired. The ICO Audit Framework and Security Recommendations are the reference standards.

What Happens Next?

1

30 minutes

Initial call

We analyse your process and identify the optimal starting point.

2

1 week

Discover

Mapping your decision logic. Rule sets documented, Decision Layer designed.

3

3-4 weeks

Build

Production agent in your infrastructure. Governance, audit trail, cert-ready from day 1.

4

12-18 months

Self-sufficient

Full access to source code, prompts and rule versions. No vendor lock-in.

Implement This Agent?

We assess your process landscape and show how this agent fits into your infrastructure.