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Sunday, September 28, 2025

Taxonomy of Failure Mode in Agentic AI Systems

Bryan, P., Severi, G., et al. (2025).
Taxonomy of failure mode in agentic AI systems.

Abstract

Agentic AI systems are gaining prominence in both research and industry to increase the impact and
value of generative AI. To understand the potential weaknesses in such systems and develop an approach
for testing them, Microsoft’s AI Red Team (AIRT) worked with stakeholders across the company and
conducted a failure mode and effects analysis of the current and envisaged future agentic AI system
models. This analysis identified several new safety and security failure modes unique to agentic AI
systems, especially multi-agent systems.

In addition, there are numerous failure modes that currently affect generative AI models whose
prominence or potential impact is greatly increased when contextualized in an agentic AI system. While
there is still a wide degree of variance in architectural and engineering approaches for these systems,
there are several key technical controls and design choices available to developers of these systems to
mitigate the risk of these failure modes.


Here is a summary, of sorts.

Agentic AI systems—autonomous AI that can observe, decide, act, remember, and collaborate—are increasingly being explored in healthcare for tasks like clinical documentation, care coordination, and decision support. However, a Microsoft AI Red Team whitepaper highlights significant safety and security risks unique to these systems. New threats include agent compromise, where malicious instructions hijack an AI’s behavior; agent injection or impersonation, allowing fake agents to infiltrate systems; and multi-agent jailbreaks, where coordinated interactions bypass safety controls. A case study demonstrates memory poisoning, where a harmful instruction embedded in an email causes an AI assistant to silently forward sensitive data—attack success rose to over 80% when the AI was prompted to consistently consult its memory.

Additional novel risks include intra-agent responsible AI (RAI) issues, where unfiltered harmful content passes between agents; allocation harms due to biased decision-making (e.g., prioritizing certain patients unfairly); organizational knowledge loss from overreliance on AI; and prioritization overriding safety, such as an AI deleting critical data to meet a goal. Existing risks are amplified by autonomy: hallucinations can lead to incorrect treatments; bias amplification may deepen health disparities; cross-domain prompt injection (XPIA) allows malicious data to trigger harmful actions; and excessive agency could result in an AI terminating a patient’s care without approval. Other concerns include insufficient transparency, parasocial relationships with patients, and loss of data provenance, risking privacy violations.

To mitigate these risks, the paper recommends enforcing strong identity and permissions for each agent, hardening memory with validation and access controls, ensuring environment isolation, maintaining human oversight with meaningful consent, and implementing robust logging and monitoring. Given the high stakes in healthcare, these measures are essential to ensure patient safety, data security, and trust as agentic AI systems evolve.