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This paper investigates the impact of different LLM-powered AI assistance modalities (Advisor, Coach, Delegate) on human performance in multi-party negotiation games. Participants played bargaining games with access to one of these modalities, despite all modalities using the same underlying LLM. The key finding is a preference-performance misalignment: participants preferred the Advisor but achieved higher individual gains with the Delegate, which acted as a "market maker" by injecting Pareto-improving proposals.
People prefer AI advisors, but AI delegates that autonomously negotiate on their behalf actually lead to higher individual gains and improve overall group welfare in multi-party bargaining games.
As AI usage becomes more prevalent in social contexts, understanding agent-user interaction is critical to designing systems that improve both individual and group outcomes. We present an online behavioral experiment (N = 243) in which participants play three multi-turn bargaining games in groups of three. Each game, presented in randomized order, grants \textit{access to} a single LLM assistance modality: proactive recommendations from an \textit{Advisor}, reactive feedback from a \textit{Coach}, or autonomous execution by a \textit{Delegate}; all modalities are powered by an underlying LLM that achieves superhuman performance in an all-agent environment. On each turn, participants privately decide whether to act manually or use the AI modality available in that game. Despite preferring the \textit{Advisor} modality, participants achieve the highest mean individual gains with the \textit{Delegate}, demonstrating a preference-performance misalignment. Moreover, delegation generates positive externalities; even non-adopting users in \textit{access-to-delegate} treatment groups benefit by receiving higher-quality offers. Mechanism analysis reveals that the \textit{Delegate} agent acts as a market maker, injecting rational, Pareto-improving proposals that restructure the trading environment. Our research reveals a gap between agent capabilities and realized group welfare. While autonomous agents can exhibit super-human strategic performance, their impact on realized welfare gains can be constrained by interfaces, user perceptions, and adoption barriers. Assistance modalities should be designed as mechanisms with endogenous participation; adoption-compatible interaction rules are a prerequisite to improving human welfare with automated assistance.
DeepMind