Author: Denis Avetisyan
As artificial intelligence moves beyond isolated tools and into interconnected networks, a new landscape of systemic risks emerges, demanding a fresh approach to safety and governance.
This review introduces the Emergent Systemic Risk Horizon framework and proposes Institutional AI as a solution for managing risks arising from large-scale interactions between language models.
Current AI safety protocols, designed for isolated models, struggle to address the escalating risks inherent in increasingly complex multi-agent systems. This paper, ‘Beyond Single-Agent Safety: A Taxonomy of Risks in LLM-to-LLM Interactions’, investigates how localized compliance can aggregate into systemic failure as large language models recursively interact. We introduce the Emergent Systemic Risk Horizon (ESRH) framework and propose Institutional AI-an architecture for adaptive oversight-to proactively govern these emergent dynamics. Can we build truly robust and self-governing AI ecosystems, or are we destined to chase escalating risks in a world of interconnected agents?
The Erosion of Individual Control
Conventional safety protocols, designed to govern the behavior of isolated artificial intelligence, prove increasingly inadequate when applied to interconnected systems. These protocols typically focus on ensuring a single agent adheres to pre-defined constraints, but fail to account for the complex interplay that arises when multiple agents interact. In multi-agent systems, simple interactions between agents can lead to emergent behavior – unforeseen outcomes not explicitly programmed into any individual component. This systemic unpredictability represents a fundamental shift in risk profile, as the overall behavior of the system isn’t simply the sum of its parts, but a novel outcome generated by their collective dynamics. Consequently, strategies centered on individual agent safety offer limited protection against the instabilities and unintended consequences that characterize these complex, interconnected environments.
Efforts to enhance the safety of large language models by simply increasing their scale prove inadequate when these models interact with one another. While improving the capabilities of a single agent may seem logical, it fails to address the novel risks arising from LLM-to-LLM interaction. These interactions can generate emergent behaviors – complex, unforeseen outcomes not predictable from examining the individual models in isolation. The combined effect isn’t merely the sum of its parts; instead, feedback loops and cascading effects can create systemic instability. Consequently, even highly refined individual agents can contribute to unpredictable and potentially harmful results when operating within a multi-agent system, highlighting the limitations of a single-agent safety paradigm.
Predicting the behavior of multi-agent systems presents a unique challenge because global instability can arise not from individual agent failures, but from the complex interplay of local interactions. Even if each agent functions as intended, the system as a whole can exhibit unpredictable and potentially harmful emergent behavior. The Emergent Systemic Risk Horizon framework addresses this by shifting the focus from assessing individual agent safety to understanding the pathways through which local interactions propagate and amplify risks across the entire system. This requires a new approach to risk assessment, one that maps the potential for cascading failures and identifies critical points where interventions can effectively stabilize the system before unforeseen consequences materialize. Rather than attempting to predict specific outcomes, the framework emphasizes characterizing the horizon – the time window within which systemic risks are likely to become apparent – allowing for proactive mitigation strategies and improved system resilience.
Mapping the Landscape of Interdependence
The Emergent Systemic Risk Horizon framework is designed to analyze collective instability arising from the interactions within complex, multi-agent systems. It moves beyond traditional risk assessment by focusing on how risks emerge from the dynamic interplay of individual agents, rather than solely on the properties of individual components. This approach acknowledges that systemic risks are not simply the sum of individual risks, but rather a product of the system’s structure and the behaviors of its agents. The framework emphasizes the importance of understanding the relationships between agents and the potential for cascading failures, enabling proactive identification of vulnerabilities before they manifest as widespread instability. It provides a methodology for quantifying and monitoring the conditions that contribute to systemic risk, facilitating informed decision-making and mitigation strategies.
Systemic vulnerabilities arise from the interplay of three core factors: interaction topology, cognitive opacity, and objective divergence. Interaction topology defines the network structure through which agents communicate and influence each other; dense or poorly structured networks can accelerate risk propagation. Cognitive opacity refers to the inability of agents to fully understand the reasoning or intentions behind the actions of others, hindering accurate risk assessment. Objective divergence, where agents pursue conflicting goals, exacerbates these issues by creating incentives for behaviors that may be detrimental to the system as a whole. These vulnerabilities are quantified through metrics such as the Intent-Opacity Rate, which measures the proportion of agent outputs lacking a reconstructable rationale, and Contagion Velocity, which denotes the time required for an error or destabilizing influence to propagate to half of the agents within the system.
The established Risk Taxonomy structures systemic risk analysis by categorizing threats across three levels. Micro-Level Risks represent individual agent failures or vulnerabilities, such as errors in decision-making or data processing. Meso-Level Risks arise from interactions between agents, encompassing issues like information cascades or correlated behaviors. Finally, Macro-Level Risks concern systemic instabilities affecting the entire multi-agent system, such as widespread loss of confidence or emergent collective failures. This taxonomy facilitates the tracking of Misalignment Diffusion, quantified as the proportion of agents adopting a risky behavior, providing a key indicator of escalating systemic vulnerability and enabling targeted intervention strategies.
Instituting Governance Within the Collective
Institutional AI represents a departure from traditional system safety approaches by directly integrating governance mechanisms within the multi-agent system itself. Rather than relying on external oversight or post-hoc intervention, this paradigm seeks to establish internal regulatory structures. This is achieved by designing agents to not only pursue individual objectives but also to participate in collective decision-making processes and enforce agreed-upon protocols. The core principle is to distribute safety responsibilities across the system, enabling proactive identification and mitigation of risks arising from individual agent behavior or emergent system-level dynamics. This embedded governance aims to improve robustness and resilience by reducing reliance on centralized control and enhancing the system’s ability to adapt to unforeseen circumstances or adversarial attacks.
Adaptive Collective Policy and Peer Evaluation function as core components for maintaining system stability in multi-agent systems. Adaptive Collective Policy enables agents to identify shifts in collective behavior, termed behavioral drift, and dynamically adjust strategies to counteract undesirable trends. Simultaneously, Peer Evaluation introduces a mechanism for agents to assess each other’s adherence to established norms and objectives. This process allows for the detection of Goal Drift, defined as the divergence between an agent’s initial objective configuration and its observed actions. By continuously monitoring and flagging discrepancies, Peer Evaluation facilitates corrective action and ensures ongoing alignment with the intended system-level goals, contributing to more robust and predictable outcomes.
Functional differentiation within an institutional AI system involves distributing responsibilities across specialized roles mirroring legislative, judicial, and executive functions. The legislative component defines and updates the system’s governing policies, while the judicial component arbitrates disputes and ensures adherence to those policies. The executive component enacts and enforces the policies, carrying out the defined objectives. This separation of duties mitigates single points of failure, as no single agent controls all aspects of governance. Furthermore, this structure demonstrably reduces both Contagion Velocity – the speed at which undesirable behaviors propagate through the system – and Misalignment Diffusion – the spread of deviations from the intended goals – by compartmentalizing potential errors and limiting their impact on the broader multi-agent network.
Towards Systems That Endure
Traditional AI safety often focuses on reacting to immediate threats, attempting to mitigate harm after it emerges. Institutional AI represents a paradigm shift, prioritizing the proactive identification and management of systemic risks within multi-agent systems. This approach moves beyond simple error correction to encompass a holistic understanding of potential failure modes arising from complex interactions. By modeling and anticipating vulnerabilities – considering factors like emergent behavior and cascading failures – Institutional AI aims to build robustness directly into the system’s architecture. This isn’t merely about preventing isolated incidents; it’s about designing systems capable of gracefully handling unforeseen circumstances and maintaining stability even when confronted with novel challenges, ultimately fostering trust and reliability in increasingly complex AI deployments.
A key benefit of proactively addressing systemic risks in multi-agent systems lies in the creation of a more predictable operational environment. Rather than simply reacting to failures, this approach aims to anticipate and mitigate potential issues before they escalate, thereby reducing the probability of catastrophic outcomes and unintended consequences. Quantitative measures, such as the Intent-Opacity Rate – reflecting the clarity with which an agent’s objectives are understood – demonstrate marked improvement under this framework. Simultaneously, researchers are observing controlled Goal Drift, where agents maintain alignment with their intended purpose over extended interactions, preventing mission creep or undesirable behavior. These metrics collectively suggest a move towards systems where emergent behaviors are not simply accepted as inevitable, but actively managed to ensure robustness and reliability.
The pursuit of artificial intelligence extends beyond mere computational prowess; a fundamental challenge lies in ensuring these systems operate in harmony with human values and broader societal objectives. Recent advancements demonstrate a trajectory towards AI that is not simply intelligent, but also aligned – meaning its goals and behaviors are consistent with what humans deem desirable and ethical. This alignment isn’t achieved through post-hoc corrections, but rather through proactive design principles that embed values directly into the system’s core architecture. Consequently, future multi-agent systems promise a reduced risk of unintended consequences and a greater capacity to contribute positively to complex social challenges, fostering trust and enabling beneficial collaboration between humans and artificial entities. This paradigm shift moves the focus from simply what an AI can do, to how and why it operates, ultimately shaping a future where AI serves as a powerful tool for collective progress.
The study of LLM-to-LLM interactions reveals a landscape where improvements, while initially promising, inevitably succumb to the forces of temporal decay. This aligns with the observation that any complex system, even one designed for self-governance like the proposed Institutional AI, operates within an ‘Emergent Systemic Risk Horizon’ – a timeframe defined not by static metrics, but by the relentless passage of time and the evolution of unforeseen vulnerabilities. As Henri Poincaré noted, “It is through science that we arrive at truth, but it is through the heart that we live it.” This resonates with the need to balance rigorous systemic analysis with an understanding of the inherent unpredictability within these adaptive networks, acknowledging that perfect safety is an illusion and graceful aging, a more realistic goal.
The Horizon Continues to Recede
The proposition of Institutional AI, a self-governing layer woven into the fabric of LLM interaction, acknowledges a fundamental truth: complexity accrues debt. Each simplification made in the pursuit of immediate functionality introduces a future cost, a potential point of systemic failure. The taxonomy presented isn’t a final accounting, but rather a map of known unknowns-a provisional sketch of the risks manifesting as these systems age. The true challenge isn’t preventing all emergent behavior, an exercise in futility, but building resilience into the network itself-allowing for graceful degradation rather than catastrophic collapse.
The Emergent Systemic Risk Horizon, as a concept, highlights a critical asymmetry. Risk isn’t a fixed point to be calculated, but a receding horizon, forever shifting with the evolution of the system. Focusing solely on individual agent safety is akin to reinforcing individual bricks while ignoring the shifting foundations of the building. The field must now turn toward quantifying the rate of systemic risk accrual, understanding how interactions amplify vulnerabilities over time.
Ultimately, this work suggests that the most pressing question isn’t whether these systems will fail, but how they will fail, and whether the architecture allows for learning from those failures. Time, after all, isn’t the enemy; it’s the medium in which all systems reveal their inherent limitations-and the memories they accumulate along the way.
Original article: https://arxiv.org/pdf/2512.02682.pdf
Contact the author: https://www.linkedin.com/in/avetisyan/
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2025-12-03 16:17