Beyond the Black Box: Interpretability of Agentic AI Tool Use
Authors: Hariom Tatsat, Ariye Shater
Organizations: Quantitative Analytics, Barclays
Abstract
AI agents are promising for high-stakes enterprise workflows, but dependable deployment remains limited because these tool-use decisions are difficult to diagnose and control. Agents may skip required tool calls, invoke tools unnecessarily, or take actions whose consequences become visible only after execution. Existing observability methods are external: prompts reveal correlations, evaluations score outputs, and logs arrive only after the model has already acted. In long-horizon settings, these failures are costly because an early tool mistake can alter the rest of the execution trajectory, increase token consumption, and create downstream safety and security risk. We introduce a mechanistic-interpretability toolkit built on Sparse Autoencoders (SAEs), which decompose activations into sparse internal features, and linear probes, lightweight classifiers that read signals from those features. The framework reads model states before each action and infers whether a tool is needed and how risky the next tool action is. It identifies the model layers and features most associated with tool decisions and tests their functional importance through feature ablation. We train the probes on multi-step agent execution traces from the NVIDIA Nemotron function-calling dataset and apply the same workflow to GPT-OSS 20B and Gemma 3 27B models. The goal is not to replace external evaluation, but to add a missing layer: visibility into what the model signaled internally before action. This helps surface deeper causes of agent failure, especially in long-horizon runs where an early mistake can impact subsequent agent behavior. More broadly, the paper shows how mechanistic interpretability can support internal observability for monitoring tool calls and risk in agent systems.
AI agents are typically instrumented through outcome-oriented indicators such as task success, reward, latency, and cost.Although these indicators are operationally important, they provide limited visibility into the internal structure of agent behavior such as the degree of exploration, the rigidity or diversity of action selection, the concentration of tool use, the reduction of uncertainty across a run, and the stability of behavior across repeated executions.This paper proposes Entropy-Based Observability for AI Agents (EOA), a lightweight framework for deriving behavioral telemetry from agent traces.
Modern AI agents execute real-world side effects through tool calls such as file operations, shell commands, HTTP requests, and database queries. A single unsafe action, including accidental deletion, credential exposure, or data exfiltration, can cause irreversible harm. Existing defenses are incomplete: post-hoc benchmarks measure behavior after execution, static guardrails miss obfuscation and multi-step context, and infrastructure sandboxes constrain where code runs without understanding what an action means. We present AgentTrust, a runtime safety layer that intercepts agent tool calls before execution and returns a structured verdict: allow, warn, block, or review. AgentTrust combines a shell deobfuscation normalizer, SafeFix suggestions for safer alternatives, RiskChain detection for multi-step attack chains, and a cache-aware LLM-as-Judge for ambiguous inputs. We release a 300-scenario benchmark across six risk categories and an additional 630 independently constructed real-world adversarial scenarios. On the internal benchmark, the production-only ruleset achieves 95.0% verdict accuracy and 73.7% risk-level accuracy at low-millisecond end-to-end latency. On the 630-scenario benchmark, evaluated under a patched ruleset and not claimed as zero-shot, AgentTrust achieves 96.7% verdict accuracy, including about 93% on shell-obfuscated payloads. AgentTrust is released under the AGPL-3.0 license and provides a Model Context Protocol server for MCP-compatible agents.
Delegation-scoped execution is not identifiable from standard observables: audit logs and execution traces can be identical under multiple incompatible delegation assignments. This gap is especially acute in LLM-based agentic systems, where agents dynamically select tools, vary execution sequences across runs for the same instruction, and spawn cooperating sub-agents. These dynamics fragment and interleave traces, making delegation-scoped reconstruction from causal structure alone structurally underdetermined. Although individual actions are authorized and logged, existing audit, tracing, and security schemas lack the semantics to reconstruct what actions occurred under a given delegation across heterogeneous systems. We focus on delegation-scoped attribution and access/share footprint reconstruction, not intent inference or reasoning reconstruction. We present an agent-aware observability substrate consisting of a lightweight gateway and a common information model that binds delegation context at execution time. This enables reliable cross-tool delegation-scoped reconstruction and direct forensic queries without heuristic time-window correlation.