Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective
On the map: LLM agents and tool use → Agent threats, guardrails and governance
Abstract (arXiv)
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.
Key facts. Cited by 12 papers in the map (data through 7 Oct 2026). Placed in Agent threats, guardrails and governance, one of 16 directions in LLM agents and tool use. Builds on 79 of its 170 references that are in the map. First posted on arXiv 4 Apr 2025.
Builds on
79 of 170 references.
Closest ancestors · 4
Same direction, newest first
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Other references · 75
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Citing papers per year: 2025: 7; 2026: 5.
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