Law
Inherent and emergent liability issues in LLM-based agentic systems: a principal-agent perspective
Gabison, Garry A., Xian, R. Patrick
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.
CF-RAG: A Dataset and Method for Carbon Footprint QA Using Retrieval-Augmented Generation
Zhao, Kaiwen, Balaji, Bharathan, Lee, Stephen
Product sustainability reports provide valuable insights into the environmental impacts of a product and are often distributed in PDF format. These reports often include a combination of tables and text, which complicates their analysis. The lack of standardization and the variability in reporting formats further exacerbate the difficulty of extracting and interpreting relevant information from large volumes of documents. In this paper, we tackle the challenge of answering questions related to carbon footprints within sustainability reports available in PDF format. Unlike previous approaches, our focus is on addressing the difficulties posed by the unstructured and inconsistent nature of text extracted from PDF parsing. To facilitate this analysis, we introduce CarbonPDF-QA, an open-source dataset containing question-answer pairs for 1735 product report documents, along with human-annotated answers. Our analysis shows that GPT-4o struggles to answer questions with data inconsistencies. To address this limitation, we propose CarbonPDF, an LLM-based technique specifically designed to answer carbon footprint questions on such datasets. We develop CarbonPDF by fine-tuning Llama 3 with our training data. Our results show that our technique outperforms current state-of-the-art techniques, including question-answering (QA) systems finetuned on table and text data.
Software Fairness Dilemma: Is Bias Mitigation a Zero-Sum Game?
Chen, Zhenpeng, Li, Xinyue, Zhang, Jie M., Sun, Weisong, Xiao, Ying, Li, Tianlin, Lou, Yiling, Liu, Yang
Fairness is a critical requirement for Machine Learning (ML) software, driving the development of numerous bias mitigation methods. Previous research has identified a leveling-down effect in bias mitigation for computer vision and natural language processing tasks, where fairness is achieved by lowering performance for all groups without benefiting the unprivileged group. However, it remains unclear whether this effect applies to bias mitigation for tabular data tasks, a key area in fairness research with significant real-world applications. This study evaluates eight bias mitigation methods for tabular data, including both widely used and cutting-edge approaches, across 44 tasks using five real-world datasets and four common ML models. Contrary to earlier findings, our results show that these methods operate in a zero-sum fashion, where improvements for unprivileged groups are related to reduced benefits for traditionally privileged groups. However, previous research indicates that the perception of a zero-sum trade-off might complicate the broader adoption of fairness policies. To explore alternatives, we investigate an approach that applies the state-of-the-art bias mitigation method solely to unprivileged groups, showing potential to enhance benefits of unprivileged groups without negatively affecting privileged groups or overall ML performance. Our study highlights potential pathways for achieving fairness improvements without zero-sum trade-offs, which could help advance the adoption of bias mitigation methods.
Strategic Hypothesis Testing
Hossain, Safwan, Chen, Yatong, Chen, Yiling
We examine hypothesis testing within a principal-agent framework, where a strategic agent, holding private beliefs about the effectiveness of a product, submits data to a principal who decides on approval. The principal employs a hypothesis testing rule, aiming to pick a p-value threshold that balances false positives and false negatives while anticipating the agent's incentive to maximize expected profitability. Building on prior work, we develop a game-theoretic model that captures how the agent's participation and reporting behavior respond to the principal's statistical decision rule. Despite the complexity of the interaction, we show that the principal's errors exhibit clear monotonic behavior when segmented by an efficiently computable critical p-value threshold, leading to an interpretable characterization of their optimal p-value threshold. We empirically validate our model and these insights using publicly available data on drug approvals. Overall, our work offers a comprehensive perspective on strategic interactions within the hypothesis testing framework, providing technical and regulatory insights.
Can Large Language Models Bridge the Gap in Environmental Knowledge?
Smail, Linda, Calonge, David Santandreu, Kamalov, Firuz, Orak, Nur H.
The investigation employs a standardized tool, the Environmental Knowledge Test (EKT - 19), supple mented by targeted questions, to evaluate the environmental knowledge of university students in comparison to the responses generated by the AI models. The results of this study suggest that while AI models possess a vast, readily accessible, and valid kno wledge base with the potential to empower both students and academic staff, a human discipline specialist in environmental sciences may still be necessary to validate the accuracy of the information provided. Keywords: En vironmental Education; AI Models; EKT - 19 1. Introduction Extreme weather events, increasing global temperatures, rising sea - levels, and changes to ecosystems and biodiversity are all consequences of climate change, which is mostly caused by anthropogenic greenhouse gas emissions ( Masson - Delmotte et al., 2018). Meanwhile, the loss of biodiversity due to habitat degradation, pollution, overexploitation, and invasive species threatens the resilience of society's ecosystems (Nature, 2021). These consequences pose questions regarding food security, public he alth, and socioeconomic stability. Thus, effective access to accurate environmental knowledge is crucial for developing sustainable solutions and informed environmental policies.
Using the NANDA Index Architecture in Practice: An Enterprise Perspective
Wang, Sichao, Raskar, Ramesh, Lambe, Mahesh, Chari, Pradyumna, Singhal, Rekha, Gupta, Shailja, Ranjan, Rajesh, Huang, Ken
The proliferation of autonomous AI agents represents a paradigmatic shift from traditional web architectures toward collaborative intelligent systems requiring sophisticated mechanisms for discovery, authentication, capability verification, and secure collaboration across heterogeneous protocol environments. This paper presents a comprehensive framework addressing the fundamental infrastructure requirements for secure, trustworthy, and interoperable AI agent ecosystems. We introduce the NANDA (Networked AI Agents in a Decentralized Architecture) framework, providing global agent discovery, cryptographically verifiable capability attestation through Agent-Facts, and cross-protocol interoperability across Anthropic's Modal Context Protocol (MCP), Google's Agent-to-Agent (A2A), Microsoft's NLWeb, and standard HTTPS communications. NANDA implements Zero Trust Agentic Access (ZTAA) principles, extending traditional Zero Trust Network Access (ZTNA) to address autonomous agent security challenges including capability spoofing, impersonation attacks, and sensitive data leakage. The framework defines Agent Visibility and Control (AVC) mechanisms enabling enterprise governance while maintaining operational autonomy and regulatory compliance. Our approach transforms isolated AI agents into an interconnected ecosystem of verifiable, trustworthy intelligent services, establishing foundational infrastructure for large-scale autonomous agent deployment across enterprise and consumer environments. This work addresses the critical gap between current AI agent capabilities and infrastructure requirements for secure, scalable, multi-agent collaboration, positioning the foundation for next-generation autonomous intelligent systems.
ContractEval: Benchmarking LLMs for Clause-Level Legal Risk Identification in Commercial Contracts
Liu, Shuang, Li, Zelong, Ma, Ruoyun, Zhao, Haiyan, Du, Mengnan
The potential of large language models (LLMs) in specialized domains such as legal risk analysis remains underexplored. In response to growing interest in locally deploying open-source LLMs for legal tasks while preserving data confidentiality, this paper introduces ContractEval, the first benchmark to thoroughly evaluate whether open-source LLMs could match proprietary LLMs in identifying clause-level legal risks in commercial contracts. Using the Contract Understanding Atticus Dataset (CUAD), we assess 4 proprietary and 15 open-source LLMs. Our results highlight five key findings: (1) Proprietary models outperform open-source models in both correctness and output effectiveness, though some open-source models are competitive in certain specific dimensions. (2) Larger open-source models generally perform better, though the improvement slows down as models get bigger. (3) Reasoning ("thinking") mode improves output effectiveness but reduces correctness, likely due to over-complicating simpler tasks. (4) Open-source models generate "no related clause" responses more frequently even when relevant clauses are present. This suggests "laziness" in thinking or low confidence in extracting relevant content. (5) Model quantization speeds up inference but at the cost of performance drop, showing the tradeoff between efficiency and accuracy. These findings suggest that while most LLMs perform at a level comparable to junior legal assistants, open-source models require targeted fine-tuning to ensure correctness and effectiveness in high-stakes legal settings. ContractEval offers a solid benchmark to guide future development of legal-domain LLMs.
AGENTiGraph: A Multi-Agent Knowledge Graph Framework for Interactive, Domain-Specific LLM Chatbots
Zhao, Xinjie, Blum, Moritz, Gao, Fan, Chen, Yingjian, Yang, Boming, Marquez-Carpintero, Luis, Pina-Navarro, Mรณnica, Fu, Yanran, Morikawa, So, Iwasawa, Yusuke, Matsuo, Yutaka, Park, Chanjun, Li, Irene
AGENTiGraph is a user-friendly, agent-driven system that enables intuitive interaction and management of domain-specific data through the manipulation of knowledge graphs in natural language. It gives non-technical users a complete, visual solution to incrementally build and refine their knowledge bases, allowing multi-round dialogues and dynamic updates without specialized query languages. The flexible design of AGENTiGraph, including intent classification, task planning, and automatic knowledge integration, ensures seamless reasoning between diverse tasks. Evaluated on a 3,500-query benchmark within an educational scenario, the system outperforms strong zero-shot baselines (achieving 95.12% classification accuracy, 90.45% execution success), indicating potential scalability to compliance-critical or multi-step queries in legal and medical domains, e.g., incorporating new statutes or research on the fly. Our open-source demo offers a powerful new paradigm for multi-turn enterprise knowledge management that bridges LLMs and structured graphs.
When AIs Judge AIs: The Rise of Agent-as-a-Judge Evaluation for LLMs
As large language models (LLMs) grow in capability and autonomy, evaluating their outputs-especially in open-ended and complex tasks-has become a critical bottleneck. A new paradigm is emerging: using AI agents as the evaluators themselves. This "agent-as-a-judge" approach leverages the reasoning and perspective-taking abilities of LLMs to assess the quality and safety of other models, promising calable and nuanced alternatives to human evaluation. In this review, we define the agent-as-a-judge concept, trace its evolution from single-model judges to dynamic multi-agent debate frameworks, and critically examine their strengths and shortcomings. We compare these approaches across reliability, cost, and human alignment, and survey real-world deployments in domains such as medicine, law, finance, and education. Finally, we highlight pressing challenges-including bias, robustness, and meta evaluation-and outline future research directions. By bringing together these strands, our review demonstrates how agent-based judging can complement (but not replace) human oversight, marking a step toward trustworthy, scalable evaluation for next-generation LLMs.
LLM-based IR-system for Bank Supervisors
Bank supervisors face the complex task of ensuring that new measures are consistently aligned with historical precedents. To address this challenge, we introduce a novel Information Retrieval (IR) System tailored to assist supervisors in drafting both consistent and effective measures. This system ingests findings from on-site investigations. It then retrieves the most relevant historical findings and their associated measures from a comprehensive database, providing a solid basis for supervisors to write well-informed measures for new findings. Utilizing a blend of lexical, semantic, and Capital Requirements Regulation (CRR) fuzzy set matching techniques, the IR system ensures the retrieval of findings that closely align with current cases. The performance of this system, particularly in scenarios with partially labeled data, is validated through a Monte Carlo methodology, showcasing its robustness and accuracy. Enhanced by a Transformer-based Denoising AutoEncoder for fine-tuning, the final model achieves a Mean Average Precision (MAP@100) of 0.83 and a Mean Reciprocal Rank (MRR@100) of 0.92. These scores surpass those of both standalone lexical models such as BM25 and semantic BERT-like models.