Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective

Fuente: arXiv
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Auteurs principaux: Gabison, Garry A., Xian, R. Patrick
Format: Preprint
Publié: 2025
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author Gabison, Garry A.
Xian, R. Patrick
author_facet Gabison, Garry A.
Xian, R. Patrick
contents Agentic systems powered by large language models (LLMs) are becoming progressively more complex and capable. Their increasing agency and expanding deployment settings attract growing attention to effective governance policies, monitoring, and control protocols. Based on the emerging landscape of the agentic market, we analyze potential liability issues arising from the delegated use of LLM agents and their extended systems through a principal-agent perspective. Our analysis complements existing risk-based studies on artificial agency and covers the spectrum of important aspects of the principal-agent relationship and their potential consequences at deployment. Furthermore, we motivate method developments for technical governance along the directions of interpretability and behavior evaluations, reward and conflict management, and the mitigation of misalignment and misconduct through principled engineering of detection and fail-safe mechanisms. By illustrating the outstanding issues in AI liability for LLM-based agentic systems, we aim to inform the system design, auditing, and tracing to enhance transparency and liability attribution.
format Preprint
id arxiv_https___arxiv_org_abs_2504_03255
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective
Gabison, Garry A.
Xian, R. Patrick
Computers and Society
Computation and Language
Multiagent Systems
Agentic systems powered by large language models (LLMs) are becoming progressively more complex and capable. Their increasing agency and expanding deployment settings attract growing attention to effective governance policies, monitoring, and control protocols. Based on the emerging landscape of the agentic market, we analyze potential liability issues arising from the delegated use of LLM agents and their extended systems through a principal-agent perspective. Our analysis complements existing risk-based studies on artificial agency and covers the spectrum of important aspects of the principal-agent relationship and their potential consequences at deployment. Furthermore, we motivate method developments for technical governance along the directions of interpretability and behavior evaluations, reward and conflict management, and the mitigation of misalignment and misconduct through principled engineering of detection and fail-safe mechanisms. By illustrating the outstanding issues in AI liability for LLM-based agentic systems, we aim to inform the system design, auditing, and tracing to enhance transparency and liability attribution.
title Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective
topic Computers and Society
Computation and Language
Multiagent Systems
url https://arxiv.org/abs/2504.03255