IFAR: Multi-Perspective and Multi-Level Causal Discovery with LLMs

Large language models (LLMs) excel at pattern recognition and text generation, but their capacity for abductive inference - inferring latent hypotheses that explain observed behavior - remains poorly understood. Here, we introduce Elenchos (named after the Socratic method of cross-examination), a generative evaluation framework that measures abductive reasoning as a structural inverse problem. Given a reference formal system, such as the lambda-calculus, and a potentially mutated counterpart, agents must determine whether a mutation has occurred and infer the rule modifications responsible for the resulting behavioral differences. Evaluating frontier and mid-tier LLMs reveals a consistent detection-attribution dissociation: models often recognize that a system has been altered but struggle to identify the latent mutations causing the observed discrepancies. Performance degrades substantially under interacting mutations, where models frequently recover only a subset of the underlying mutations. Preliminary evidence also suggests diminishing returns from increased inference-time reasoning, with only modest improvements under larger reasoning budgets, though this finding requires further validation.

Abductive reasoning requires forming hypotheses that explain observed evidence and revising them as new evidence becomes available. While large language models (LLMs) are often evaluated on whether they solve abductive reasoning tasks correctly, less is known about how they acquire evidence, update their hypotheses, and decide when to stop. We introduce Alien Abduction game, an interactive probe for studying these behaviours under different interaction modes. The modes vary in whether evidence is provided upfront or across turns, and whether queries are selected by the model or examples are provided by the oracle. Across models, providing evidence upfront leads to higher success rates than distributing it across turns. In multi-turn settings, some models commit before using the available evidence, while others exhaust the turn budget without converging. Models also achieve higher success rates when examples are provided by the oracle than when they select their own queries, although their final hypotheses are more consistent with the evidence they selected. These findings suggest that models may form hypotheses that fit self-selected evidence without sufficiently distinguishing them from alternatives, and may struggle to validate and refine their hypotheses or determine when to stop.

Despite the importance of causal reasoning, training LLMs to reason causally remains underexplored. Existing data efforts mostly focus on benchmarking LLMs on specific aspects of causality, making them less suitable for training generalizable causal reasoners. To address this, we propose UniCo, a data generation framework that both (1) addresses 18 causal query types across Pearl's Causal Ladder and (2) translates natively symbolic examples into code and natural language forms to simulate real-world use cases where causal terms are not explicitly specified. To ensure data quality, UniCo grounds answers with exact causal inference and filters cases with reasoning shortcuts. Upon supervised finetuning with 66.6K UniCo-generated instances, Qwen3-4B, Qwen3-8B and Olmo-3-7B-Instruct achieve an average of 22.9% improvements across all 18 in-distribution query types, and 8.1% over state-of-the-art causal data generation frameworks on 7 established causal benchmarks outside the training distribution. More importantly, in real-world medical understanding, legal decision, and tabular reasoning, UniCo-trained models consistently display more faithful reasoning traces, outperforming the base models by an average of 20.2% in faithfulness metrics. These suggest that causality-centered training not only strengthens causal reasoning, but also equips LLMs with a causal mindset in general reasoning tasks.