mlsanityData to 7 Oct 2026

Failure Modes in LLM Systems: A System-Level Taxonomy for Reliable AI Applications

arXiv 2511.19933 ↗First posted 25 Nov 2025cs.AIcited by 9

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Abstract (arXiv)

Large language models (LLMs) are being rapidly integrated into decision-support tools, automation workflows, and AI-enabled software systems. However, their behavior in production environments remains poorly understood, and their failure patterns differ fundamentally from those of traditional machine learning models. This paper presents a system-level taxonomy of fifteen hidden failure modes that arise in real-world LLM applications, including multi-step reasoning drift, latent inconsistency, context-boundary degradation, incorrect tool invocation, version drift, and cost-driven performance collapse. Using this taxonomy, we analyze the growing gap in evaluation and monitoring practices: existing benchmarks measure knowledge or reasoning but provide little insight into stability, reproducibility, drift, or workflow integration. We further examine the production challenges associated with deploying LLMs - including observability limitations, cost constraints, and update-induced regressions - and outline high-level design principles for building reliable, maintainable, and cost-aware LLM systems. Finally, we outline high-level design principles for building reliable, maintainable, and cost-aware LLM-based systems. By framing LLM reliability as a system-engineering problem rather than a purely model-centric one, this work provides an analytical foundation for future research on evaluation methodology, AI system robustness, and dependable LLM deployment.

Key facts. Cited by 9 papers in the map (data through 7 Oct 2026). Builds on 40 of its 60 references that are in the map. First posted on arXiv 25 Nov 2025.

Builds on

40 of 60 references.

References · 40

  1. 2021Pre-train, Prompt, and Predict: A Systematic Survey of Prompting Methods in Natural Language Processingcited by 2,222
  2. 2023A Survey on Evaluation of Large Language Modelscited by 1,227
  3. 2023FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performancecited by 791
  4. 2025Why Do Multi-Agent LLM Systems Fail?cited by 559
  5. 2024A Systematic Survey of Prompt Engineering in Large Language Models: Techniques and Applicationscited by 428
  6. 2023Tool Learning with Foundation Modelscited by 302
  7. 2023Evaluating Large Language Models at Evaluating Instruction Followingcited by 290
  8. 2024Knowledge Conflicts for LLMs: A Surveycited by 274
  9. 2023Certifying LLM Safety against Adversarial Promptingcited by 248
  10. 2025Why Language Models Hallucinatecited by 205
  11. 2025Evaluation and Benchmarking of LLM Agents: A Surveycited by 145
  12. 2024Multi-Step Reasoning with Large Language Models, a Surveycited by 140
28 more
  1. 2023An Empirical Study of the Non-determinism of ChatGPT in Code Generationcited by 134
  2. 2024LLM Maybe LongLM: Self-Extend LLM Context Window Without Tuningcited by 133
  3. 2025Where LLM Agents Fail and How They can Learn From Failurescited by 118
  4. 2024The Good, The Bad, and The Greedy: Evaluation of LLMs Should Not Ignore Non-Determinismcited by 113
  5. 2023Unleashing the potential of prompt engineering for large language modelscited by 72
  6. 2024Risk Taxonomy, Mitigation, and Assessment Benchmarks of Large Language Model Systemscited by 63
  7. 2024Exploring LLM-based Agents for Root Cause Analysiscited by 60
  8. 2024Factual Confidence of LLMs: on Reliability and Robustness of Current Estimatorscited by 59
  9. 2025Large Language Models Hallucination: A Comprehensive Surveycited by 45
  10. 2023Two Failures of Self-Consistency in the Multi-Step Reasoning of LLMscited by 36
  11. 2024LIFBench: Evaluating the Instruction Following Performance and Stability of Large Language Models in Long-Context Scenarioscited by 31
  12. 2024The Current Challenges of Software Engineering in the Era of Large Language Modelscited by 21
  13. 2024Exploring Context Window of Large Language Models via Decomposed Positional Vectorscited by 18
  14. 2025Guidelines for Empirical Studies in Software Engineering involving Large Language Modelscited by 18
  15. 2024A Survey of AIOps for Failure Management in the Era of Large Language Modelscited by 16
  16. 2025Understanding Multimodal LLMs Under Distribution Shifts: An Information-Theoretic Approachcited by 15
  17. 2025An overview of model uncertainty and variability in LLM-based sentiment analysis. Challenges, mitigation strategies and the role of explainabilitycited by 15
  18. 2024Distilling Mathematical Reasoning Capabilities into Small Language Modelscited by 14
  19. 2025ThriftLLM: On Cost-Effective Selection of Large Language Models for Classification Queriescited by 14
  20. 2025Anthropomimetic Uncertainty: What Verbalized Uncertainty in Language Models is Missingcited by 14
  21. 2025The Confidence Paradox: Can LLM Know When It's Wrongcited by 11
  22. 2024Evaluation of an LLM in Identifying Logical Fallacies: A Call for Rigor When Adopting LLMs in HCI Researchcited by 10
  23. 2024As an AI Language Model, "Yes I Would Recommend Calling the Police": Norm Inconsistency in LLM Decision-Makingcited by 10
  24. 2025Clarifying Ambiguities: on the Role of Ambiguity Types in Prompting Methods for Clarification Generationcited by 10
  25. 2024Detecting LLM Hallucination Through Layer-wise Information Deficiency: Analysis of Ambiguous Prompts and Unanswerable Questionscited by 9
  26. 2025AIRepr: An Analyst-Inspector Framework for Evaluating Reproducibility of LLMs in Data Sciencecited by 4
  27. 2024Human-Readable Adversarial Prompts: An Investigation into LLM Vulnerabilities Using Situational Contextcited by 3
  28. 2025Specification and Evaluation of Multi-Agent LLM Systems -- Prototype and Cybersecurity Applicationscited by 3

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Cited by year (2026 to 7 Oct)

Citing papers per year: 2026: 9.

9 papers.

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  1. 2024ToolScan: A Benchmark for Characterizing Errors in Tool-Use LLMs
  2. 2024Designing Algorithms Empowered by Language Models: An Analytical Framework, Case Studies, and Insights
  3. 2026AgentFixer: From Failure Detection to Fix Recommendations in LLM Agentic Systems
  4. 2025How Do LLMs Fail In Agentic Scenarios? A Qualitative Analysis of Success and Failure Scenarios of Various LLMs in Agentic Simulations
  5. 2025Challenges in Testing Large Language Model Based Software: A Faceted Taxonomy
  6. 2025Rethinking Testing for LLM Applications: Characteristics, Challenges, and a Lightweight Interaction Protocol
  7. 2026When Agents Fail to Act: A Diagnostic Framework for Tool Invocation Reliability in Multi-Agent LLM Systems
  8. 2026A Self-Healing Framework for Reliable LLM-Based Autonomous Agents