What It Means
Policy context is the set of rules, regulations, and standards that define what a correct AI decision looks like for a given situation. For a lending decision, this includes ECOA requirements, FCRA obligations, underwriting guidelines, and internal risk policies. For a healthcare prior authorization, it includes step therapy protocols, clinical criteria, CMS guidelines, and state-specific requirements. The policy context transforms AI decision auditing from subjective review ('does this seem right?') to objective evaluation ('does this comply with these specific rules?').
Why It Matters
The same AI output can be right or wrong depending on the policy context. A benefits denial is correct if the applicant doesn't meet eligibility criteria — and incorrect if the AI applied the wrong criteria. A drug authorization denial is valid under one state's step therapy rules and invalid under another's. Policy context is what makes evaluation objective and jurisdiction-specific.
How Bookbag Helps
Bookbag includes policy context as a standard component of the evidence payload. Reviewers evaluate AI decisions against the specific regulations, guidelines, and internal policies that apply — not general principles. The audit trail documents which policy version was used for each evaluation, creating the compliance documentation regulators require.
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