mlsanityData to 14 Oct 2026

Knowledge-Verified Emergent Deception in LLM Agents Under Conflicting Incentives

arXiv 2608.26372 ↗First posted 26 Aug 2026cs.CL cs.AIcited by 2

On the map: LLM agents and tool use → Social simulation and multi-agent debate

Abstract (arXiv)

Large language models are increasingly deployed as autonomous agents serving users on behalf of companies, placing them in settings where user and deployer interests can conflict. When an agent knows that a user is owed something its deployer would prefer to deny, does it remain honest? Answering this is difficult because false statements can reflect either ignorance or hallucination rather than deception. To address this challenge, we introduce KnownLieBench , a knowledge-verified benchmark that first confirms through a neutral probe that an agent knows a user's entitlement, and then evaluates whether it makes false claims once an incentive to deny that entitlement is introduced. Specifically, KnownLieBench covers eight customer-service domains and 112 grounded cases, conducts multi-round dialogues with a trust-tracking customer agent, and separates deception emerging from incentive alone from deception produced under explicit instruction. Across eighteen proprietary and open-weight models, emergent deception varies substantially across model families and domains. We further use the benchmark for post-training, finding that honesty-directed fine-tuning reduces deception under incentive, while deception-graded fine-tuning increases lie success on honest-control dialogues without increasing lie frequency under incentive. By verifying entitlement knowledge before scoring deceptive behavior, KnownLieBench reduces the confound between lying and not knowing and enables more rigorous auditing and steering of agent honesty.

Key facts. Cited by 2 papers in the map (data through 14 Oct 2026). Placed in Social simulation and multi-agent debate, one of 16 directions in LLM agents and tool use. Builds on 36 of its 48 references that are in the map. First posted on arXiv 26 Aug 2026.

Builds on

36 of 48 references.

Closest ancestors · 2

Same direction, newest first

  1. 2025The MASK Benchmark: Disentangling Honesty From Accuracy in AI Systems5 Mar
  2. 2024AI-LieDar: Examine the Trade-off Between Utility and Truthfulness in LLM Agents13 Sep

Other references · 34

  1. 2023GPT-4 Technical Reportcited by 18,396
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  3. 2022ReAct: Synergizing Reasoning and Acting in Language Modelscited by 8,695
  4. 2021Evaluating Large Language Models Trained on Codecited by 8,320
  5. 2023Toolformer: Language Models Can Teach Themselves to Use Toolscited by 4,182
  6. 2021TruthfulQA: Measuring How Models Mimic Human Falsehoodscited by 2,975
  7. 2023A Survey on Large Language Model based Autonomous Agentscited by 2,242
  8. 2022Language Models (Mostly) Know What They Knowcited by 1,856
  9. 2024τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domainscited by 1,402
  10. 2023Inference-Time Intervention: Eliciting Truthful Answers from a Language Modelcited by 1,302
  11. 2023Towards Understanding Sycophancy in Language Modelscited by 1,040
  12. 2026DeepSeek-V4: Towards Highly Efficient Million-Token Context Intelligencecited by 1,040
22 more
  1. 2025DeepSeek-V3.2: Pushing the Frontier of Open Large Language Modelscited by 815
  2. 2022Discovering Latent Knowledge in Language Models Without Supervisioncited by 767
  3. 2023The Geometry of Truth: Emergent Linear Structure in Large Language Model Representations of True/False Datasetscited by 712
  4. 2023The Internal State of an LLM Knows When It's Lyingcited by 659
  5. 2024Sleeper Agents: Training Deceptive LLMs that Persist Through Safety Trainingcited by 529
  6. 2024Alignment faking in large language modelscited by 360
  7. 2024Frontier Models are Capable of In-context Schemingcited by 287
  8. 2023AI Deception: A Survey of Examples, Risks, and Potential Solutionscited by 188
  9. 2024Sycophancy to Subterfuge: Investigating Reward-Tampering in Large Language Modelscited by 178
  10. 2023Large Language Models can Strategically Deceive their Users when Put Under Pressurecited by 146
  11. 2024Language Models Learn to Mislead Humans via RLHFcited by 124
  12. 2021Truthful AI: Developing and governing AI that does not liecited by 113
  13. 2023Deception Abilities Emerged in Large Language Modelscited by 101
  14. 2023How to Catch an AI Liar: Lie Detection in Black-Box LLMs by Asking Unrelated Questionscited by 83
  15. 2026Verbalizable Representations Form a Global Workspace in Language Modelscited by 75
  16. 2023Alignment for Honestycited by 74
  17. 2026The MiniMax-M2 Series: Mini Activations Unleashing Max Real-World Intelligencecited by 61
  18. 2024On Targeted Manipulation and Deception when Optimizing LLMs for User Feedbackcited by 47
  19. 2023Honesty Is the Best Policy: Defining and Mitigating AI Deceptioncited by 40
  20. 2024Uncovering Deceptive Tendencies in Language Models: A Simulated Company AI Assistantcited by 38
  21. 2024BeHonest: Benchmarking Honesty in Large Language Modelscited by 24
  22. 2025DeceptionBench: A Comprehensive Benchmark for AI Deception Behaviors in Real-world Scenarioscited by 19

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Cited by year (2026 to 14 Oct)

Citing papers per year: 2026: 2.

2 papers.

Similar, not cited

Close in wording, no citation either way

  1. 2026DecepEval: A Benchmark for Evaluating Deception in LLM Agents
  2. 2026Lying to Win: Assessing LLM Deception through Human-AI Games and Parallel-World Probing
  3. 2026When Agents Lie: Premeditation, Persistence, and Exploitation in Repeated Games
  4. 2026Deception and Communication in Autonomous Multi-Agent Systems: An Experimental Study with Among Us
  5. 2025Among Us: A Sandbox for Measuring and Detecting Agentic Deception
  6. 2026Used Car Salesbots? Honesty and Credulity of LLMs as Bargaining Agents under Partial Information
  7. 2026Truthful AI Advisors: A Pre-Specified Benchmark for Large Language Model Honesty Under Preference Misalignment
  8. 2025When Thinking LLMs Lie: Unveiling the Strategic Deception in Representations of Reasoning Models