Where divergence comes from
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.
Designing oversight after delegation
The discussion centers on shareholders delegating management decisions to AI and extends to workplaces, public administration, professional services, and asset management. It considers how instructions, monitoring, approval, and stop authority can balance the gains from delegation with the cost of oversight.