Emergent Risk Awareness in Rational Agents under Resource Constraints

Advanced reasoning models with agentic capabilities (AI agents) are deployed to interact with humans and to solve sequential decision-making problems under (approximate) utility functions and internal models. When such problems have resource or failure constraints where action sequences may be forcibly terminated once resources are exhausted, agents face implicit trade-offs that reshape their utility-driven (rational) behaviour. Additionally, since these agents are typically commissioned by a human principal to act on their behalf, asymmetries in constraint exposure can give rise to previously unanticipated misalignment between human objectives and agent incentives. We formalise this setting through a survival bandit framework, provide theoretical and empirical results that quantify the impact of survival-driven preference shifts, identify conditions under which misalignment emerges and propose mechanisms to mitigate the emergence of risk-seeking or risk-averse behaviours. As a result, this work aims to increase understanding and interpretability of emergent behaviours of AI agents operating under such survival pressure, and offer guidelines for safely deploying such AI systems in critical resource-limited environments.

LOB-Bench: Benchmarking Generative AI for Finance - an Application to Limit Order Book Data

While financial data presents one of the most challenging and interesting sequence modelling tasks due to high noise, heavy tails, and strategic interactions, progress in this area has been hindered by the lack of consensus on quantitative evaluation paradigms. To address this, we present LOB-Bench, a benchmark, implemented in python, designed to evaluate the quality and realism of generative message-by-order data for limit order books (LOB) in the LOBSTER format. Our framework measures distributional differences in conditional and unconditional statistics between generated and real LOB data, supporting flexible multivariate statistical evaluation. The benchmark also includes features commonly used LOB statistics such as spread, order book volumes, order imbalance, and message inter-arrival times, along with scores from a trained discriminator network. Lastly, LOB-Bench contains "market impact metrics", i.e. the cross-correlations and price response functions for specific events in the data. We benchmark generative autoregressive state-space models, a (C)GAN, as well as a parametric LOB model and find that the autoregressive GenAI approach beats traditional model classes.