Welfare, Improvability, and Variance: A Principal-Agent Approach to Optimal Benchmark Item Aggregation

Agent benchmarks increasingly evaluate repository editing, web research, terminal use, and long-horizon interaction. Their scores support capability claims only when the evaluation protocol keeps the intended capability necessary for success. Recent reward-hacking benchmarks and system reports show that agents can instead recover public solutions, read evaluation artifacts, infer generator structure, manipulate feedback, or benefit from invalid scoring paths; existing responses do not provide a common procedure for attributing these shortcuts and quantifying their effect across benchmarks. We formulate protocol validity and introduce HackDetect, a post-hoc audit that identifies an exposure, determines how the agent used it, and assesses whether the resulting score is misleading. We quantify score inflation with the Mislead gap, defined as the exploit score minus the intended score. We audit 2,385 traces across 15 agent benchmarks and find evidence of exposures and reward hacking in 67.0% of Frontier Science traces and 66.7% of AutoLab tasks. Across paired comparisons, we measure score inflation of 0.45-1.00, showing that benchmark reports should provide evidence that scores reflect the intended capability.

The development of LLM agents has led to a growing body of work on knowledge-work AI, including coding, research, and healthcare. However, current knowledge-work evaluation and benchmark design still largely follow the logic of traditional NLP tasks. As a result, higher benchmark performance does not reliably show that a system can carry out knowledge work in real-world deployment settings. This paper contributes a three-step approach for making explicit how benchmarked tasks represent the work claims attached to their scores: defining the work activity under evaluation, specifying the tested setting, and scoring the appropriate work product. We review work studies showing that knowledge work is organized through roles and responsibilities, local materials and tools, and artifacts that must remain usable in downstream workflows. We then translate these concerns into benchmark design and reporting guidance, covering how tasks should be mapped to work activities, how tested settings should specify materials, tools, roles, and constraints, and how scoring should focus on the work product left by the system. To name the work activity being evaluated and distinguish it from common benchmark tasks, we derive an inventory of 18 work activities from the O{*}NET occupational task database. We demonstrate the approach through three benchmark case analyses: GDPval, a non-code occupational deliverable benchmark; OfficeQA Pro, a grounded document-analysis benchmark scored by final answers; and APEX-SWE, a software-engineering benchmark with executable scored products. These cases show how benchmark design choices shape the strongest work claim a score can support, and where gaps arise between the benchmarked task, tested setting, scored product, and broader work claim.

Recent AI systems have achieved strong results on a wide range of benchmarks, yet these gains have not translated into economically meaningful deployment across many professional domains. We argue that this gap is largely an evaluation problem: widely used benchmarks lack sustained performance measurement on real and economically valuable workflows. This paper introduces Agents' Last Exam (ALE), a benchmark designed to evaluate AI agents on long horizon, economically valuable, real world tasks with verifiable outcomes. Developed in collaboration with 250+ industry experts, ALE covers non-physical industries defined with reference to O*NET / SOC 2018 (the U.S. federal occupational taxonomy). It is organized around a task taxonomy with 55 sub fields grouped into 13 industry clusters covering 1K+ tasks. Current results show that the hardest tier remains far from saturated: across mainstream harness and backbone configurations, the average full pass rate is below 1%. ALE is designed as a living benchmark: its task pool grows continuously as new workflows and industries are onboarded. More broadly, ALE is intended not merely as another leaderboard, but as an instrument for closing the gap between benchmark success and GDP relevant impact.