The Kyndryl Interactive Institute Journal Issue 1 | Page 25

test ideas before they hit reality. A government cabinet can ask an AI to model the fiscal, social, and environmental impact of raising fuel taxes versus expanding rail subsidies, with projections broken down by city, income bracket, and carbon intensity.
AI surfaces hidden correlations— say, the linkage between microenterprise defaults and school dropout rates— prompting integrated interventions. This augments human judgment rather than eclipsing it. Officials still weigh trade offs, values, and public sentiment, but with a sharper understanding of consequences.
The partnership works best when humans set direction, ethics, and empathy, and machines provide speed, scale, and precision. Together they form an“ augmented state,” capable of navigating complexity that overwhelms any spreadsheet.

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Sovereign agents:

Protecting human agency

Crucially, the agent stores personal context locally— purchase history, legal preferences, ethical stances— so the user’ s values remain central. When government systems request data, the agent shares only what is necessary, preserving privacy while enabling seamless interaction. Sovereign agents thus anchor human agency in an ocean of automated processes. Without them, the legitimacy of AI-native governance could fracture, as citizens fear losing control.
As AI takes the wheel, who protects the passenger? Enter the sovereign agent: a persistent, loyal digital companion that negotiates on behalf of an individual or organization. Picture a small business owner agent that:
• auto completes license renewals
• checks compliance obligations
• tracks tax incentives
• flags suspicious transactions in real time

We explore how to launch the tech-powered paradigm shift, erect ethical and legal guardrails, supercharge public service efficiency, strengthen cybersecurity, and elevate decision-making.

The Kyndryl Institute Journal 13