Understanding Agentic AI and Its Impact on Government Security Models
Agentic AI is making waves in business sectors, altering foundational approaches to government security contracting. Unlike earlier automation technologies, which simply followed pre-set workflows, agentic systems are designed to interpret intent, autonomously choose actions, and interact with various tools and data in real time. This evolution presents unique opportunities and challenges for small- to medium-sized businesses (SMBs), particularly those engaged with government security contracts.
A great example is how modern surveillance now includes visual agentic AI weapon detection systems that use computer vision to identify firearms, knives, and other threats in real time. Unlike traditional CCTV, which just records, these systems act as an “active” observer, often alerting security teams within 3–15 seconds of a weapon being drawn. Districts like Montgomery County Public Schools (MCPS) and Volusia County are piloting these systems to proactively catch brandished weapons before shots are fired.
What Is Agentic AI?
Agentic AI refers to autonomous software applications that can make decisions and execute tasks without direct human input. For example, agentic AI can manage invoice processing, inventory management, travel bookings, and even infrastructure upkeep. However, these systems also bring significant security risks, including:
1. Financial Loss: Errors in automated decision-making could lead to cost overruns or unapproved expenditures.
2. Data Exposure: Improper handling of sensitive information can expose businesses to data breaches.
3. Safety Risks: Inadequate governance of these systems could compromise safety in critical operations.
Understanding the Shift in Risk Management
As companies begin to leverage agentic AI, the strategy for risk management must evolve. Traditional enterprise security models rely on human approval for essential decisions. With a system that can act independently, it necessitates a shift in responsibility toward system design and oversight. Shahar Peled, co-founder of Terra Security, outlines this change:
“Agentic AI alters the security equation fundamentally in three aspects: speed, scale, and autonomy.”
The rise of these systems raises questions about accountability, necessitating a more robust framework for oversight and monitoring.
Agentic AI is rapidly transforming surveillance from passive monitoring to proactive, autonomous action. Key developments include AI agents that can, on their own, trigger surveillance, investigate security breaches, and analyze video feeds, while also raising significant privacy concerns and prompting new regulatory oversight.
The rise of agentic surveillance is raising concerns about the blurring of the line between national security and unlawful domestic spying, particularly with Pentagon contractors (like Anthropic) facing scrutiny for refusing to allow their models to be used for mass domestic surveillance.
The Challenges with Agentic AI
1. Velocity of Decision Making: Agentic AI operates continuously and alters its actions almost instantaneously. This characteristic increases the risk of agent-to-agent attacks and permissions being misallocated across workflows.
– Solution: Implement real time monitoring systems to address these swift changes.
2. Loss of Visibility: It can become challenging to track how and why decisions are made within these systems. If an agent is not audited properly, determining accountability is complicated.
– Solution: Develop transparent audit trails that document the entire decision-making process.
3. Behavioral Risk: The combination of autonomy and authority can result in behavioral risks. If an AI agent can alter code or approve changes, any mistakes can escalate quickly.
– Solution: Limit the authority of agents where necessary; for instance, allow them to suggest changes but require human approval for execution.
The Importance of Security by Design for Government
Effective design is crucial for the successful deployment of agentic AI systems. The Cybersecurity and Infrastructure Security Agency (CISA) has endorsed a “secure by design” approach, indicating that security should be a core consideration rather than an afterthought. A great example would be the current leading platforms like ZeroEyes and Omnilert, which route AI detections to 24/7 operations centers staffed by humans (often former military or law enforcement) who verify the threat before notifying the police to avoid false alarms. Key considerations include:
– Authority Limits: Establish clear boundaries about what an agent can and cannot do to enforce the principle of least privilege.
– Audit Logs: Maintain immutable and separate records of actions taken by the AI for later review.
– Human Oversight: Define explicit escalation pathways where certain threshold risks are identified.
How SMBs Can Navigate Agentic AI
For SMBs working with government contracts, the implementation of agentic AI can be particularly advantageous, providing efficiency and a competitive edge, but it also demands a proactive approach to managing risks. Here are some actionable steps:
1. Stay Informed About Government Programs: Familiarize yourself with programs designed to assist small businesses, including preferences under 8(a), VOSB, WOSB, and HUBZone initiatives.
2. Invest in Training and Resources: Join training sessions or workshops that educate on compliance and best practices for security when implementing technology. Understanding these guidelines can help safeguard your operations against vulnerabilities.
3. Engage with Established Partners: Collaborating with experienced organizations like Select GCR can provide the necessary resources and strategic insights to ensure your contract compliance while leveraging agentic AI effectively.
– For more information on government contracting, schedule a 15-minute review and our team will do a free contract search for you.
4. Adapt Governance Structures: Implement clear governance protocols to ensure accountability within AI applications. Consider using our resources like our quick assessment to develop these structures effectively.
5. Monitor Development: Keep a close watch on AI behaviors and performance metrics. Ensure you have mechanisms to detect when AI activities diverge from expected norms.
As the landscape of enterprise technology expands, SMBs must adopt a forward-thinking attitude and embrace the potential that agentic AI offers, while remaining vigilant in their security protocols. With the right information and strategies, these businesses can not only adapt but thrive in this rapidly evolving digital environment.
Conclusion
The emergence of agentic AI represents both a tremendous opportunity and a set of new challenges for SMBs, particularly those engaged in government contracting. By understanding the fundamental changes in risk management, implementing robust governance practices, and leveraging the resources available at Select GCR, businesses can position themselves for growth in this new landscape.

