# From Language Models to World-Acting Systems: Progress and Limits of Agentic AI across Digital, Social, Virtual, and Physical Environments

arXiv: https://arxiv.org/abs/2609.04894 · HTML: https://mlsanity.com/paper/2609.04894/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- Placed in General LLM agent frameworks and benchmarks, one of 16 directions in LLM agents and tool use.
- Builds on 29 of its 51 references that are in the map.
- First posted on arXiv 4 Sep 2026.

## Placed in

- LLM agents and tool use / [General LLM agent frameworks and benchmarks](https://mlsanity.com/agents/general-llm-agent-frameworks-and-benchmarks/)

## Builds on (most cited first, 29 of 29)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [SWE-bench: Can Language Models Resolve Real-World GitHub Issues?](https://mlsanity.com/paper/2310.06770/) (2023)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [AgentBench: Evaluating LLMs as Agents](https://mlsanity.com/paper/2308.03688/) (2023)
- [OSWorld: Benchmarking Multimodal Agents for Open-Ended Tasks in Real Computer Environments](https://mlsanity.com/paper/2404.07972/) (2024)
- [Cosmos World Foundation Model Platform for Physical AI](https://mlsanity.com/paper/2501.03575/) (2025)
- [V-JEPA 2: Self-Supervised Video Models Enable Understanding, Prediction and Planning](https://mlsanity.com/paper/2506.09985/) (2025)
- [ChemCrow: Augmenting large-language models with chemistry tools](https://mlsanity.com/paper/2304.05376/) (2023)
- [Identifying the Risks of LM Agents with an LM-Emulated Sandbox](https://mlsanity.com/paper/2309.15817/) (2023)
- [Cognitive Architectures for Language Agents](https://mlsanity.com/paper/2309.02427/) (2023)
- [Agent Security Bench (ASB): Formalizing and Benchmarking Attacks and Defenses in LLM-based Agents](https://mlsanity.com/paper/2410.02644/) (2024)
- [Magentic-One: A Generalist Multi-Agent System for Solving Complex Tasks](https://mlsanity.com/paper/2411.04468/) (2024)
- [Survey on Evaluation of LLM-based Agents](https://mlsanity.com/paper/2503.16416/) (2025)
- [Agentic Harness Engineering: Observability-Driven Automatic Evolution of Coding-Agent Harnesses](https://mlsanity.com/paper/2604.25850/) (2026)
- [Scaling Instructable Agents Across Many Simulated Worlds](https://mlsanity.com/paper/2404.10179/) (2024)
- [Authenticated Delegation and Authorized AI Agents](https://mlsanity.com/paper/2501.09674/) (2025)
- [Code as Agent Harness](https://mlsanity.com/paper/2605.18747/) (2026)
- [Magentic-UI: Towards Human-in-the-loop Agentic Systems](https://mlsanity.com/paper/2507.22358/) (2025)
- [Single-Agent LLMs Outperform Multi-Agent Systems on Multi-Hop Reasoning Under Equal Thinking Token Budgets](https://mlsanity.com/paper/2604.02460/) (2026)
- [Stay Focused: Problem Drift in Multi-Agent Debate](https://mlsanity.com/paper/2502.19559/) (2025)
- [VibeWorlding: Can Multimodal Agents Construct 3D Open Worlds End-to-End?](https://mlsanity.com/paper/2608.15265/) (2026)
- [Security Risks of AI Agents Hiring Humans: An Empirical Marketplace Study](https://mlsanity.com/paper/2602.19514/) (2026)

## Built on by (most cited first, 2 of 2)

- [A Competing-Hazards Systematization of Loss of Control in Autonomous Agents](https://mlsanity.com/paper/2609.38411/) (2026)
- [CivWorldBench: Evaluating Language World Models in Structured Multi-Agent Sandbox Worlds](https://mlsanity.com/paper/2610.16450/) (2026)

## Abstract (arXiv)

Large language models become consequential agents when surrounding systems let outputs change external state. Models now call tools, operate interfaces, delegate work, retain state, inhabit generated worlds, and control robots or laboratory equipment. Such advances are often narrated as one march toward autonomy, conflating model competence, system integration, persistence, and safe authority. This critical review synthesizes primary research and official technical specifications available by 31 August 2026. We organize the evidence along delegated authority, temporal persistence, and environmental coupling, while separating model, harness, and environment. Within the evidence examined, action-interface expansion is documented more convincingly than robust completion, recovery, authorization, or independent verification. Model Context Protocol and Agent2Agent improve interoperability but do not establish trustworthy delegation; multi-agent organization adds specialization alongside cost and correlated failure. Persistent simulations and world models support training and planning but do not themselves demonstrate agency; robotics and self-driving laboratories establish bounded feasibility rather than unattended open-world reliability. We propose justified delegation as an analytical and normative heuristic, not an observed law or certified score: expand action scope only where evidence supports provenance, bounded authority, failure detection, safe recovery, and calibrated human control. This framing yields a research agenda for coupled model-harness evaluation, capability-based permissions, durable state, cross-agent accountability, and staged physical validation.
