What is enterprise ontology?
Enterprise ontology is a formal, governed specification of the entities, states, rules, decisions and responsibilities that constitute a business, expressed in a form AI agents can reason over rather than merely read.
The operative word is reason over. A document can be retrieved and quoted. An ontology can be queried and checked: can this order be cancelled? which states can a claim be in? who is permitted to approve this? what does "active" mean for this entity class? Those are the questions an agent actually needs answered, and they cannot be answered from prose without interpretation. Interpretation is where errors enter.
An ontology is not a database, not a documentation project and not a data model. It sits above all of them and supplies the vocabulary and constraints that everything else is supposed to agree on. Where an enterprise has one, an agent's answer can be traced back to a governed definition. Where it does not, the agent's answer is traceable to a plausible guess.
Singapore and Hong Kong SAR enterprises in regulated sectors usually arrive at this question earlier than others, because the governance frameworks they answer to — ISO/IEC 42001, ISO/IEC 23894, NIST AI RMF, the EU AI Act — all assume a documented and consistent business model exists. What you cannot articulate, you cannot audit.