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A paper on delegating work to and overseeing AI agents

Atlas Support’s Economic Research team introduces a paper that uses agency theory to explain how an AI agent’s actions can diverge from the intentions of the person delegating work.

The Principal–AI Agent Problem: Governance in the Age of AI Agents and Principal–AI Agent Theory

Even if the AI pursues no private interest, a principal can struggle to communicate objectives and constraints, observe actions, or intervene in time. The paper calls the resulting divergence “AI agency slack” and examines the costs of preventing, detecting, and correcting it, along with the losses that remain.