AI Agents and Conflicts of Interest

A new paper by Ella Genasci Smith, Victor Y. Wu, and Jennifer King addresses the challenges of governing agentic AI, particularly concerning conflicts of interest between AI developers and users. The authors highlight the need for legal frameworks to evolve to address new risks posed by non-human agency and suggest policy recommendations such as the duty of loyalty, digital agent identifiers, federal privacy legislation, and adverse incident reporting.

• The spread of non-human agency necessitates an overhaul of liability paradigms.
• Existing legal systems are not yet equipped to handle new risks from AI agents.
• The paper discusses applying the duty of loyalty to AI agents.
• Policy recommendations include digital agent identifiers, federal privacy legislation, and agent adverse incident reporting.
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