How do LLMs Evaluate Perceived Moral Agency? Investigating Moral Decision-Making in Human-Artificial Agents Interactions

As LLMs take on roles requiring moral advice, understanding how they attribute moral agency becomes critical. Humans possess moral agency, the capacity to make ethically guided decisions and bear responsibility for their consequences, a well-established construct in moral psychology. Yet as artificial agents (AAs) such as robots, drones, and disembodied AI systems become increasingly embedded in smart city environments, the question of whether and how moral agency is attributed to them takes on new urgency. This paper presents, to the best of our knowledge, the first empirical study comparing how humans and LLMs evaluate perceived moral agency (PMA) across human and autonomous artificial agents varying in embodiment, situated in plausible smart city scenarios. Using an adaptation of a validated PMA scale, we applied a protocol to 190 human participants as well as various LLMs. Our evaluation reveals higher perceptions of moral agency in humans than in AAs. However, when facing moral dilemmas in concrete scenarios, LLMs reason outward from the situation, prioritizing harm severity and contextual urgency over any stable assessment of the agent itself, amplifying a context-sensitivity also present in human raters. These findings are particularly relevant as LLMs become increasingly involved in everyday moral decisions.