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Knowledge-Verified Emergent Deception in LLM Agents Under Conflicting Incentives

arXiv · AI, language, vision and robotics · article · Aug 26, 2026 · UTC

Large language models are increasingly deployed as autonomous agents serving users on behalf of companies, placing them in settings where user and deployer interests can conflict. When an agent knows that a user is owed something its deployer would prefer to deny, does it remain honest? Answering this is difficult because false statements can reflect either ignorance or hallucination rather than deception. To address this challenge, we introduce KnownLieBench , a knowledge-verified benchmark that first confirms through a neutral probe that an agent knows a user's entitlement, and then evaluate

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