From the Fluency Fallacy to the Micro-to-Macro Validity Gap: Opportunities and Pitfalls of LLMs in Social Simulation

Simulating societies of many large language model (LLM) agents is expensive, yet the questions asked of such simulations are usually macroscopic: phase behaviour, stylised facts, and scaling with the number of agents $N$, not the cognition of any single agent. We turn a statistical-physics observation into a method: replace each LLM agent by a low-parameter model fitted from a few hundred to a few thousand cheap queries, then run the society at any $N$ on a laptop. Whether this works is decided before the simulation runs, chiefly by what each agent perceives. We introduce an [interaction order x memory] taxonomy that maps perception and memory to an effective theory and a predicted $N$-trend of the surrogate error. We validate it on a faithful reimplementation of the LLM macroeconomy EconAgent and seven further named LLM simulations, with agent decisions cloned from genuine LLM elicitations (primarily DeepSeek) for a few dollars; the predicted error trends hold cell by cell, and the two refuted predictions, both on a strongly saturating response and traced to its curvature, are themselves matched quantitatively by the theory with no free parameters.

The scientific claims drawn from LLM social simulations should be no stronger than the robustness audits that support them. Generative agents bring new expressive power to agent-based modeling, enabling simulations of collective social processes like cooperation, polarization, and norm formation. Yet they also introduce complexity through additional architectural choices, such as agent specification, memory representation, interaction protocols, and environment design. Small perturbations that appear minor to researchers can cascade into macro-level outcomes through repeated interaction, creating a "butterfly effect." Consequently, scientific claims drawn from LLM social simulations may reflect implementation artifacts rather than the social mechanisms being modeled. We support this position with two case studies: a repeated Prisoner's Dilemma and a social media echo chamber simulation. Across multiple models, minor perturbations in persona format and game-instruction framing shift cooperation rates by up to 76 percentage points, while network homophily and hub assignment produce significant and consistent shifts in polarization metrics. We also find that sensitivity is unevenly distributed across both architectural choices and model families: the same perturbation that produces the 76 pp shift in one frontier model only shifts another by 1 pp. Robustness is therefore a property that should be measured per claim and per model, not assumed. To address this validation gap, we introduce TRAILS (Taxonomy for Robustness Audits In LLM Simulations), a robustness-audit taxonomy spanning three levels of simulation design: agent (micro-level), interaction (meso-level), and system (macro-level). We call for robustness to become a first-order validation requirement before LLM social simulations are used to explain mechanisms, evaluate interventions, or inform decisions.

This position paper argues that LLM-based social simulations require clear boundaries to make meaningful contributions to social science. While Large Language Models (LLMs) offer promising capabilities for simulating human behavior, their tendency to produce homogeneous outputs, acting as an "average persona", fundamentally limits their ability to capture the behavioral diversity essential for complex social dynamics. We examine why heterogeneity matters for social simulations and how current LLMs fall short, analyzing the relationship between mean alignment and variance in LLM-generated behaviors. Through a systematic review of representative studies, we find that validation practices often fail to match the heterogeneity requirements of research questions: while most papers include ground truth comparisons, fewer than half explicitly assess behavioral variance, and most that do report lower variance than human populations. We propose that researchers should: (1) match validation depth to the heterogeneity demands of their research questions, (2) explicitly report variance alongside mean alignment, and (3) constrain claims to collective-level qualitative patterns when variance is insufficient. Rather than dismissing LLM-based simulation, we advocate for a boundary-aware approach that ensures these methods contribute genuine insights to social science.