@inproceedings{kim-etal-2026-grace,
title = "{GRACE}: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational {AI}",
author = "Kim, Jinwon and
Lim, Kyunghyun and
Kim, Gayeon and
Yun, Sookeun and
Heo, Min-Oh",
editor = "Wang, Yimu and
Choi, Yee Man and
Wu, Di and
Ouyang, Siqi and
Azadani, Mozhgan Nasr and
Fung, Yi R. (May)",
booktitle = "Proceedings of the 1st Workshop on Grounding Language Models: Learning Faithfully and Efficiently ({G}round{LM} 2026)",
month = oct,
year = "2026",
address = "Budapest, Hungary",
publisher = "Association for Computational Linguistics",
url = "https://aclanthology.org/2026.groundlm-1.59/",
pages = "796--822",
ISBN = "979-8-89176-478-1",
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."
}<?xml version="1.0" encoding="UTF-8"?>
<modsCollection xmlns="http://www.loc.gov/mods/v3">
<mods ID="kim-etal-2026-grace">
<titleInfo>
<title>GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI</title>
</titleInfo>
<name type="personal">
<namePart type="given">Jinwon</namePart>
<namePart type="family">Kim</namePart>
<role>
<roleTerm authority="marcrelator" type="text">author</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Kyunghyun</namePart>
<namePart type="family">Lim</namePart>
<role>
<roleTerm authority="marcrelator" type="text">author</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Gayeon</namePart>
<namePart type="family">Kim</namePart>
<role>
<roleTerm authority="marcrelator" type="text">author</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Sookeun</namePart>
<namePart type="family">Yun</namePart>
<role>
<roleTerm authority="marcrelator" type="text">author</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Min-Oh</namePart>
<namePart type="family">Heo</namePart>
<role>
<roleTerm authority="marcrelator" type="text">author</roleTerm>
</role>
</name>
<originInfo>
<dateIssued>2026-10</dateIssued>
</originInfo>
<typeOfResource>text</typeOfResource>
<relatedItem type="host">
<titleInfo>
<title>Proceedings of the 1st Workshop on Grounding Language Models: Learning Faithfully and Efficiently (GroundLM 2026)</title>
</titleInfo>
<name type="personal">
<namePart type="given">Yimu</namePart>
<namePart type="family">Wang</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Yee</namePart>
<namePart type="given">Man</namePart>
<namePart type="family">Choi</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Di</namePart>
<namePart type="family">Wu</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Siqi</namePart>
<namePart type="family">Ouyang</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Mozhgan</namePart>
<namePart type="given">Nasr</namePart>
<namePart type="family">Azadani</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<name type="personal">
<namePart type="given">Yi</namePart>
<namePart type="given">R</namePart>
<namePart type="given">(May)</namePart>
<namePart type="family">Fung</namePart>
<role>
<roleTerm authority="marcrelator" type="text">editor</roleTerm>
</role>
</name>
<originInfo>
<publisher>Association for Computational Linguistics</publisher>
<place>
<placeTerm type="text">Budapest, Hungary</placeTerm>
</place>
</originInfo>
<genre authority="marcgt">conference publication</genre>
<identifier type="isbn">979-8-89176-478-1</identifier>
</relatedItem>
<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.</abstract>
<identifier type="citekey">kim-etal-2026-grace</identifier>
<location>
<url>https://aclanthology.org/2026.groundlm-1.59/</url>
</location>
<part>
<date>2026-10</date>
<extent unit="page">
<start>796</start>
<end>822</end>
</extent>
</part>
</mods>
</modsCollection>
%0 Conference Proceedings
%T GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI
%A Kim, Jinwon
%A Lim, Kyunghyun
%A Kim, Gayeon
%A Yun, Sookeun
%A Heo, Min-Oh
%Y Wang, Yimu
%Y Choi, Yee Man
%Y Wu, Di
%Y Ouyang, Siqi
%Y Azadani, Mozhgan Nasr
%Y Fung, Yi R. (May)
%S Proceedings of the 1st Workshop on Grounding Language Models: Learning Faithfully and Efficiently (GroundLM 2026)
%D 2026
%8 October
%I Association for Computational Linguistics
%C Budapest, Hungary
%@ 979-8-89176-478-1
%F kim-etal-2026-grace
%X 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.
%U https://aclanthology.org/2026.groundlm-1.59/
%P 796-822
Markdown (Informal)
[GRACE: Generating Conflict-Aware Cases for Evaluating Policy Compliance in Enterprise Conversational AI](https://aclanthology.org/2026.groundlm-1.59/) (Kim et al., GroundLM 2026)
ACL