Organizations: University of California, San Diego
Abstract
Tool-augmented LLM agents tend to call tools indiscriminately, even when the model can answer directly. Each unnecessary call wastes API fees and latency, yet no existing benchmark systematically studies when a tool call is actually needed. We propose When2Tool, a benchmark of 18 environments (15 single-hop, 3 multi-hop) spanning three categories of tool necessity -- computational scale, knowledge boundaries, and execution reliability -- each with controlled difficulty levels that create a clear decision boundary between tool-necessary and tool-unnecessary tasks. We evaluate two families of training-free baselines: Prompt-only (varying the prompt to discourage unnecessary calls) and Reason-then-Act (requiring the model to reason about tool necessity before acting). Both provide limited control: Prompt-only suppresses necessary calls alongside unnecessary ones, and Reason-then-Act still incurs a disproportionate accuracy cost on hard tasks. To understand why these baselines fail, we probe the models' hidden states and find that tool necessity is linearly decodable from the pre-generation representation with AUROC 0.89--0.96 across six models, substantially exceeding the model's own verbalized reasoning. This reveals that models already know when tools are needed, but fail to act on this knowledge during generation. Building on this finding, we propose Probe&Prefill, which uses a lightweight linear probe to read the hidden-state signal and prefills the model's response with a steering sentence. Across all models tested, Probe&Prefill reduces tool calls by 48% with only 1.7% accuracy loss, while the best baseline at comparable accuracy only reduces 6% of tool calls, or achieves a similar tool call reduction but incurs a 5× higher accuracy loss. Our code is available at https://github.com/Trustworthy-ML-Lab/when2tool
Tool calling is central to modern language model agents, but aggregate benchmark scores often hide where tool use fails. A model that never calls a needed tool and a model that calls the tool but ignores the result can look similar under final task accuracy. We introduce ToolFailBench, a diagnostic benchmark for measuring tool-use failures across 1,000 tasks in finance, medicine, law, cybersecurity, and real estate. Tool-required tasks return values the model wouldn't guess, forcing it to trust the tool while control tasks attach the same tools but should be answered directly. We label each trace with Tool-Skip, Result-Ignore, Output-Fabrication, and Unnecessary-Tool-Use, using a rule classifier and two LLM judges aggregated by majority vote. Across 19 headline models, the best reaches 86.33% Clean Tool-Use Rate, showing that faithful tool use is not saturated. More importantly, models with similar aggregate scores fail in different ways: most stay disciplined on no-tool controls, while Llama-3.1 models show an Always-Call pattern, and at the same parameter scale Llama-3.1-70B and Qwen2.5-72B differ by 89 percentage points on control-task accuracy. Tool-use evaluation should measure not only whether agents call tools, but whether they use tool outputs correctly and avoid tools when none is needed.
Agentic AI architectures augment LLMs with external tools, unlocking strong capabilities. However, tool use is not always beneficial; some calls may be redundant or even harmful. Effective tool use, therefore, hinges on a core LLM decision: whether to call or not call a tool when performing a task. This decision is particularly challenging for web search tools, where the benefits of external information depend on the model's internal knowledge and its ability to integrate potentially noisy tool responses. We introduce a principled framework inspired by decision-making theory to evaluate web search tool-use decisions along three key factors: necessity, utility, and affordability. Our analysis combines two complementary lenses: a normative perspective that infers true need and utility from an optimal allocation of tool calls, and a descriptive perspective that infers the model's self-perceived need and utility from their observed behaviors. We evaluate six open and one closed-source frontier models under two harnesses, one conditioning on only the current turn and its search results, the other on the full execution traces, across four web-search tools and three tasks. In every setting, we find that a model's perceived need and utility are frequently misaligned with the true need and utility. Building on this framework, we train lightweight estimators of need and utility from the models' hidden states. These estimators drive simple controllers that improve decision quality and yield stronger task performance than the self-perceived baseline for most of the open-source models.
When a tool-calling agent picks the wrong tool, the failure is invisible until execution: the email gets sent, the meeting gets missed. As agents take on consequential actions, one bad tool call can do real damage. We currently have no way to look inside the model and catch the mistake before it happens; this paper shows that we can. Inside the model, the choice of tool is carried by a single direction in activation space, one direction per pair of tools. Adding that direction during generation switches which tool the model picks. Across 12 instruction-tuned and 6 base models spanning Gemma 3, Qwen 3, Qwen 2.5, and Llama 3.1 (270M to 27B), this works at 83-100% accuracy on 4B+ instruction-tuned models on a 15-tool synthetic benchmark and at 77-94% on the real-API benchmark τ-bench airline. The JSON arguments that follow automatically adapt to the new tool's schema, so flipping the name is enough. The same per-tool directions also flag likely errors before they happen: queries where the model is unsure between two tools fail 21x more often than queries where it is not (Gemma 3 27B). This is not just topic injection: random vectors at the same magnitude give a 0% switch rate, and a probe within a single domain (14 airline tools that share one topic) still reads which tool the model will call at top-1 61-89% across five 4B-14B models. Even base models already carry the right tool internally before they can emit it: reading the chosen tool off the model's internal state (cosine readout) recovers 61-82% accuracy on BFCL while base generation lands at 2-10%, suggesting pretraining forms the representation and instruction tuning later wires it to the output. Our results cover single-turn, fixed-menu settings; on multi-turn agent loops the same intervention is less stable (matched-baseline gain or loss of up to 30 percentage points with no consistent direction).