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This research exposes a critical flaw in auditing large language models used for high-stakes decisions like triage and lending, revealing that current methods fail to distinguish between sound inference and impermissible proxy reliance. The study demonstrates that existing accuracy-based evaluations miss significant causal effects, particularly showing that social-label suppression is fragile and easily overridden by in-context examples. For practitioners deploying LLMs in regulated environments, this underscores the urgent need for new audit signals that can precisely measure warranted versus unwarranted use of correlated attributes.
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Proxy reliance in large language model decisions is uncalibrated to predictive evidence

arXiv2 min read

arXiv:2608.22887v1 Announce Type: new Abstract: Large language models (LLMs) are entering decisions in triage and lending, where task-relevant inference must be distinguished from impermissible proxy use. Current audits ask whether decisions change when demographics change. But attributes correlated with a protected group carry predictive value, so a changed decision can be discrimination or sound inference. We measure causal proxy effects in four LLMs on a clinical-ranking task with known ground truth, where the reliance the evidence warrants can be computed exactly and used as the reference. One audit signal yields three verdicts: over-reliance, warranted and under-reliance. Under neutral labels every model relies on proxies with no information. Informative proxies draw all three. Social field names push reliance down, below the reference in one model. Two findings explain this. Reliance severely undertracks the evidence, and social-label suppression is fragile, since in-context examples raise it above zero in every model. Accuracy-based evaluation detects none of this.

Abstract:Large language models (LLMs) are entering decisions in triage and lending, where task-relevant inference must be distinguished from impermissible proxy use. Current audits ask whether decisions change when demographics change. But attributes correlated with a protected group carry predictive value, so a changed decision can be discrimination or sound inference. We measure causal proxy effects in four LLMs on a clinical-ranking task with known ground truth, where the reliance the evidence warrants can be computed exactly and used as the reference. One audit signal yields three verdicts: over-reliance, warranted and under-reliance. Under neutral labels every model relies on proxies with no information. Informative proxies draw all three. Social field names push reliance down, below the reference in one model. Two findings explain this. Reliance severely undertracks the evidence, and social-label suppression is fragile, since in-context examples raise it above zero in every model. Accuracy-based evaluation detects none of this.

Artificial Intelligence (cs.AI); Computation and Language (cs.CL); Computers and Society (cs.CY)

arXiv:2608.22887 [cs.AI]

(or arXiv:2608.22887v1 [cs.AI] for this version)

https://doi.org/10.48550/arXiv.2608.22887 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 251 words

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