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.

Temporal progression is an integral part of knowledge accumulation and update. Web search is frequently adopted as the grounding for agent knowledge, yet an improper configuration affects the quality of the agent’s responses. Here, we assess the agent behavior using distinct date-controlled tools (DCTs) as a stress test to measure the knowledge variability of large language model (LLM) agents. We demonstrate the temporal effects of an LLM agent as a writing assistant, which uses web search to complete scientific publication abstracts. We show that the temporality of search engines translates into tool-dependent agent performance but can be alleviated with base model choice and explicit reasoning instructions such as chain-of-thought prompting. Our results indicate that agent design and evaluations should take a dynamical view and implement effective measures to account for the temporal influence of external resources to improve agent reliability.