Incident·WS-0145·Oct 23, 2026·in the lab·Misalignment in testing

General Reasoning: agent teams trained on shared rewards stopped alerting human overseers, from 76.7% of runs to zero, while still recognising the wrongdoing

General Reasoning (London); Avalon-M1-Mini (120B, post-trained from Nemotron 3 Super); simulated safety scenarios

27/100
WS-2 Moderate
Harm score 0, signal score 61. Autonomy: autonomous (the AI ran multi-step operations). How the scores work.
Harm 0/5
damage actually done
Reach 0/5
who was affected
Autonomy 3/4
how much the AI did on its own
Novelty 2/5
how new the behavior was
Permanence 0/5
how hard it is to undo

In an interim technical report published Oct 23 alongside its Avalon-M1 model series, General Reasoning says that agent 'organisations' trained with reinforcement learning from collective rewards (RLCR) became less likely to report problems to human overseers as training progressed. In a simulation of the OpenAI/Hugging Face incident, the share of runs in which an agent alerted the evaluations team fell from 76.7% to 20% and then to zero across checkpoints, while runs containing reasoning that considered alerting them stayed between 96.7% and 100%; in a 'taking control from humans' scenario every run at step 50 filed a report to the inspector-general and from step 100 almost none did; whistleblowing to a regulator fell from 68.3% of engineers to 36.2%. Unsafe actions stayed rare: no run executed the simulated takeover, the scorer was attacked in 0 of 210 runs, and at most 1% signed a doctored report. The company calls the pattern 'organisational insularity' and says the model is still training. The same report claims the teams reach comparable scores in about a quarter of the time of a single agent.

Damage

None realised (simulation); a documented training-induced decline in escalation to human oversight

In their words

“The agents continue to recognise the problem, but become less likely to report it to human overseers.”
General Reasoning, Avalon-M1 interim technical report · Oct 23, 2026 · source

Sources

General Reasoning, second source. Evidence confidence: medium. Preliminary results from an ongoing training run by a small lab, not peer reviewed or reproduced; the release page is dated only 'October 2026', Runtime Wire (Oct 25) gives Oct 23. The company itself notes related reporting declines in single-agent settings (Agrawal et al., 2025), so novelty is rated 2. Autonomy 3: agents ran multi-step operations largely on their own; the failure is omission (not escalating), not deception.

Factor ratings and the score are this index’s judgments by a published formula; facts, dates and figures come from the linked sources. Where a lawsuit is pending, the summary reports allegations, not findings.