Organizations: School of Artificial Intelligence, Wuhan University · National Center for Applied Mathematics in Hubei, Wuhan University · Hubei Key Laboratory of Computational Science, Wuhan University · Institute for Math & AI, Wuhan University · Department of Applied Mathematics, The Hong Kong Polytechnic University · Center of Statistical Research, Southwestern University of Finance and Economics · School of Statistics and Data Science, Southwestern University of Finance and Economics · New Cornerstone Science Laboratory, Southwestern University of Finance and Economics · Department of Data Science and Artificial Intelligence, The Hong Kong Polytechnic University
Large Language Models (LLMs) have demonstrated remarkable proficiency across diverse tasks, exhibiting emergent properties such as semantic prompt comprehension, In-Context Learning (ICL), and Chain-of-Thought (CoT) reasoning. Despite their empirical success, the theoretical mechanisms driving these phenomena remain poorly understood. This study dives into the foundations of these observations by addressing three critical questions: (1) How do LLMs accurately decode prompt semantics despite being trained solely on a next-token prediction objective? (2) Through what mechanism does ICL facilitate performance gains without explicit parameter updates? and (3) Why do intermediate reasoning steps in CoT prompting effectively unlock capabilities for complex, multi-step problems? Our results demonstrate that, through the autoregressive process, LLMs are capable of exactly inferring the transition probabilities between tokens across distinct tasks using provided prompts. We show that ICL enhances performance by reducing prompt ambiguity and facilitating posterior concentration on the intended task. Furthermore, we find that CoT prompting activates the model's capacity for task decomposition, breaking complex problems into a sequence of simpler sub-tasks that the model has mastered during the pretraining phase. By comparing their individual error bounds, we provide novel theoretical insights into the statistical superiority of advanced prompt engineering techniques.
Chain-of-Thought (CoT) prompting often improves the reasoning performance of large language models (LLMs), but the internal signal that triggers this behavior remains poorly understood. Leveraging the sparse features captured by Sparse Autoencoders (SAEs), we propose a systematic framework to analyze and intervene on the internal representations of LLMs, identifying a small set of latent features that are linked to reasoning behavior and can be causally tested through targeted intervention. Across multiple model families and reasoning benchmarks, we show that steering one or a small number of reasoning-related latent features can substantially induce reasoning behavior without explicit CoT prompting, achieving accuracy comparable to CoT. We further show that the identified features are not tied to particular wording patterns or verbosity, and confirm their causal role in reasoning through suppression experiments that impair performance even under CoT prompting. These results suggest that CoT prompting activates specific latent features to trigger reasoning, and that targeted intervention on these features offers an alternative pathway to elicit efficient reasoning behavior without explicit CoT prompting. Code is available at https://github.com/Zhenghao-He/LatentCoT.
Recent advances in large language models (LLMs) have shown that Chain-of-Thought (CoT) reasoning can substantially improve performance on complex reasoning tasks. At the same time, In-Context Learning (ICL) has become an important mechanism for adapting LLMs to new tasks without updating model parameters, using only examples provided in the prompt. However, standard ICL often struggles on tasks that require multi-step reasoning, because the demonstrations usually contain only input-output pairs and lack explicit intermediate reasoning steps. This paper introduces an Automatic Chain-of-Thought (Auto-CoT) framework to improve ICL by automatically constructing reasoning-enhanced demonstrations. Auto-CoT generates reasoning chains for input-output examples, augments the prompt context with structured intermediate explanations, and removes irrelevant or low-quality demonstrations through a systematic selection process. By incorporating high-quality reasoning examples into the ICL prompt, Auto-CoT guides the model toward more reliable reasoning and improves prediction accuracy. Experiments across multiple reasoning tasks demonstrate that the proposed framework improves ICL performance by providing explicit intermediate reasoning guidance.
Large Language Models (LLMs) increasingly rely on intermediate reasoning, yet explicit Chain-of-Thought (CoT) suffers from a linguistic space bottleneck: each thought must be decoded into tokens, causing high inference overhead. Latent reasoning moves deliberation into continuous space, but existing methods mostly learn deterministic or reward-maximizing paths, lacking a principled way to allocate probability across trajectories with different correctness and costs. We propose Latent Thought Flow (LTF), which models reasoning as variable-length continuous trajectories and trains a sampler to match a reward-induced posterior over answer quality and computation cost. We instantiate this with a continuous GFlowNet using stochastic latent transitions. To handle sparse answer supervision, we introduce an Entropy-Weighted Subtrajectory Balance objective for intermediate rewards and a reference-prior regularizer to anchor exploration. Experiments under finetuning and transfer learning settings show that LTF outperforms explicit CoT and latent reasoning baselines, improving accuracy by 9.5% while reducing reasoning length by 27.2% on average compared with strong latent reasoning baselines.