@inproceedings{gabison-xian-2025-inherent,
    title = "Inherent and emergent liability issues in {LLM}-based agentic systems: a principal-agent perspective",
    author = "Gabison, Garry A.  and
      Xian, R. Patrick",
    editor = "Kamalloo, Ehsan  and
      Gontier, Nicolas  and
      Lu, Xing Han  and
      Dziri, Nouha  and
      Murty, Shikhar  and
      Lacoste, Alexandre",
    booktitle = "Proceedings of the 1st Workshop for Research on Agent Language Models (REALM 2025)",
    month = jul,
    year = "2025",
    address = "Vienna, Austria",
    publisher = "Association for Computational Linguistics",
    url = "https://preview.aclanthology.org/display_plenaries/2025.realm-1.9/",
    pages = "109--130",
    ISBN = "979-8-89176-264-0",
    abstract = "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."
}