Developer Builds AI Agent Governance Tool to Catch Policy Violations Beyond Execution Success

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A developer built 'Second Signature,' an observability system for AI agents, for the SigNoz hackathon to address a critical blind spot in agent workflows. The tool distinguishes between technical execution success and governance compliance, recognizing that a completed action can still violate approval policies. Using OpenTelemetry and SigNoz, it traces the full path from an agent's intent through policy evaluation, approval, and payment execution. The demo illustrates three outcomes of a financial refund scenario: an unsafe success where a legacy agent bypasses approval, a safe stop where payment is blocked after rejection, and a safe success where approval is granted before execution. The project argues that standard observability metrics like latency are insufficient, and that domain-specific trace attributes are needed to audit whether an AI agent was actually authorized to act.

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