GNAILGJul 28, 2025

Aligning Large Language Model Agents with Rational and Moral Preferences: A Supervised Fine-Tuning Approach

arXiv:2507.20796v12 citationsh-index: 1
Originality Incremental advance
AI Analysis

This work addresses the challenge of ensuring AI agents make economically and morally sound decisions in autonomous settings, though it is incremental as it builds on existing fine-tuning methods with new preference structures.

The paper tackled the problem of aligning large language model (LLM) agents with human-like economic and moral preferences, finding that fine-tuning with small synthetic datasets shifts LLM behavior toward specific preference structures like homo economicus and homo moralis, as demonstrated in applications such as moral dilemmas and algorithmic pricing.

Understanding how large language model (LLM) agents behave in strategic interactions is essential as these systems increasingly participate autonomously in economically and morally consequential decisions. We evaluate LLM preferences using canonical economic games, finding substantial deviations from human behavior. Models like GPT-4o show excessive cooperation and limited incentive sensitivity, while reasoning models, such as o3-mini, align more consistently with payoff-maximizing strategies. We propose a supervised fine-tuning pipeline that uses synthetic datasets derived from economic reasoning to align LLM agents with economic preferences, focusing on two stylized preference structures. In the first, utility depends only on individual payoffs (homo economicus), while utility also depends on a notion of Kantian universalizability in the second preference structure (homo moralis). We find that fine-tuning based on small datasets shifts LLM agent behavior toward the corresponding economic agent. We further assess the fine-tuned agents' behavior in two applications: Moral dilemmas involving autonomous vehicles and algorithmic pricing in competitive markets. These examples illustrate how different normative objectives embedded via realizations from structured preference structures can influence market and moral outcomes. This work contributes a replicable, cost-efficient, and economically grounded pipeline to align AI preferences using moral-economic principles.

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