GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI

Jinwon Kim, Kyunghyun Lim, Gayeon Kim, Sookeun Yun, Min-Oh Heo


Abstract
Policy compliance in enterprise conversational AI is not binary: the same response can satisfy one stakeholder’s policy while violating another’s. Existing evaluations largely treat compliance as a single-policy problem, which makes cross-role conflict cases difficult to construct and assess. GRACE (Generating Conflict-Aware Cases for Evaluating Policy Compliance) addresses this gap by generating matched normal and conflict cases from the same underlying scenario, assigning role-wise expected verdicts through independent per-role policy evaluation, and scoring responses independently for each role rather than collapsing compliance into a single binary label. Across four domains, this process yields 1,109 labeled scenarios, including 309 cross-role conflicts. Evaluating five LLMs shows that deny cases are easiest, allow cases are depressed by over-refusal, and conflict cases are consistently hardest, revealing failures that single-label evaluation obscures. Per-persona analysis further shows that these errors are localized to specific domain-role combinations rather than uniform across models. GRACE therefore supports both policy review and deployment-time model selection.
Anthology ID:
2026.groundlm-1.59
Volume:
Proceedings of the 1st Workshop on Grounding Language Models: Learning Faithfully and Efficiently (GroundLM 2026)
Month:
October
Year:
2026
Address:
Budapest, Hungary
Editors:
Yimu Wang, Yee Man Choi, Di Wu, Siqi Ouyang, Mozhgan Nasr Azadani, Yi R. (May) Fung
Venues:
GroundLM | WS
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
796–822
Language:
URL:
https://aclanthology.org/2026.groundlm-1.59/
DOI:
Bibkey:
Cite (ACL):
Jinwon Kim, Kyunghyun Lim, Gayeon Kim, Sookeun Yun, and Min-Oh Heo. 2026. GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI. In Proceedings of the 1st Workshop on Grounding Language Models: Learning Faithfully and Efficiently (GroundLM 2026), pages 796–822, Budapest, Hungary. Association for Computational Linguistics.
Cite (Informal):
GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI (Kim et al., GroundLM 2026)
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PDF:
https://aclanthology.org/2026.groundlm-1.59.pdf