Highsystemic

Explanation Degradation

As decisions pass through multiple agents, the ability to explain why a decision was made degrades, making the system opaque and non-compliant with explainability requirements.

Overview

How to Detect

Cannot trace reasoning for final decisions. Explanations become circular or incomplete. Regulatory explainability requirements unmet. Users and auditors can't understand system decisions.

Root Causes

Reasoning not propagated between agents. Context summarization loses explanation details. No standard explanation format across agents. Emergent decisions have no single explanation source.

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Deep Dive

Overview

Explanation degradation occurs when multi-agent systems lose the ability to provide coherent explanations for their decisions. As information passes through multiple agents, reasoning chains break down, context is lost, and the final output becomes unexplainable.

The Explanation Problem

Single Agent: Traceable

Input → Reasoning → Output

"I recommended X because:
 1. Data showed Y
 2. Policy Z applies
 3. Calculation: Y + Z = X"

Clear, auditable explanation

Multi-Agent: Degraded

Input → Agent A → Agent B → Agent C → Output

"Why X?"
Agent C: "Agent B told me to"
Agent B: "I processed Agent A's output"
Agent A: "Based on my analysis..."

But what was the actual reasoning chain?

Degradation Patterns

Reasoning Chain Breaks

Agent A: "High risk because metric > threshold"
Agent B: Receives "high risk" (loses metric details)
Agent C: Receives "concern flagged" (loses severity)
Agent D: Outputs "rejected" (no context why)

Final explanation: "Rejected due to concerns"
Actual reason: Lost in translation

Context Compression

Original: "Customer has excellent 10-year history
          but recent missed payment due to
          documented medical emergency"

After 3 agents: "Customer has payment issues"

Nuance lost, explanation misleading

Circular Explanations

Q: "Why was loan denied?"
A: "Risk assessment was negative"
Q: "Why was risk assessment negative?"
A: "Multiple factors indicated high risk"
Q: "What factors?"
A: "The factors that led to denial"
[Circular, no actual explanation]

Black Box Composition

Agent A: Explainable model
Agent B: Explainable model
Agent C: Explainable model

A + B + C: Emergent black box

Individual explanations don't compose
into system-level explanation

Regulatory Requirements

GDPR Article 22

"Meaningful information about the logic involved"

  • Multi-agent: Which agent's logic?
  • Emergent decisions: What logic?

Fair Lending Laws

"Specific reasons for adverse action"

  • Must cite actual factors
  • "AI determined" not acceptable

Healthcare Regulations

"Clinical decision support must be explainable"

  • Physicians must understand AI reasoning
  • Cannot rely on unexplainable recommendations

Financial Services

"Model risk management requires explanation"

  • Regulators audit decision logic
  • Can't audit what can't be explained

Explanation Debt

Explanation quality over agent chain:

Quality
  │
  │  ████
  │  ████ ███
  │  ████ ███ ██
  │  ████ ███ ██ █
  └──────────────────
     A    B   C  D

Each handoff loses explanation fidelity

Solutions

Explanation Preservation Protocol

class ExplainableMessage:
    def __init__(self, content, explanation):
        self.content = content
        self.explanation = ExplanationChain()

    def add_reasoning_step(self, agent_id, reasoning, evidence):
        self.explanation.add_step({
            "agent": agent_id,
            "reasoning": reasoning,
            "evidence": evidence,
            "timestamp": now()
        })

    def get_full_explanation(self):
        return self.explanation.compose_narrative()

Explanation Checkpoints

After every N agents, generate explanation summary:

Checkpoint 1 (After Agent B):
"Decision trending toward X because [A's reasoning] + [B's refinement]"

Checkpoint 2 (After Agent D):
"Final decision X because [Summary 1] + [C's analysis] + [D's validation]"

Counterfactual Preservation

Track what would change the decision:

"Denied because income < $50K
 Would approve if income >= $50K"

Even if reasoning chain lost, counterfactual explains

How to Prevent

Explanation Propagation: Include structured explanations in all inter-agent messages.

Reasoning Checkpoints: Periodically consolidate and verify explanation coherence.

Explanation Schema: Define standard formats for preservable explanations.

Counterfactual Tracking: Maintain what-would-change information alongside decisions.

Audit Trail: Log complete reasoning chains for regulatory review.

Human-Readable Summaries: Generate explanations at each stage, not just the end.

Explanation Testing: Verify explanation quality as part of system testing.

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Real-World Examples

A bank's multi-agent loan processing system was fined $2.5M for ECOA violations when it couldn't provide specific reasons for loan denials. The 6-agent pipeline had lost all meaningful explanation by the final decision.