State-Centric Decision Process

Large Language Model (LLM) agents are deployed in complex environments -- such as massive codebases, enterprise databases, and conversational histories -- where the relevant state far exceeds their context windows. To navigate these spaces, an agent must iteratively explore the environment to find relevant information. However, without explicit infrastructure, an agent's working memory can degrade into lossy representations of the search state, resulting in redundant work (e.g. repetitive looping) and premature stopping. In this work, we formalize this challenge as the Context Gathering Decision Process (CGDP), a specialized Partially Observable Markov Decision Process, where an agent's objective is to adaptively refine its belief state to isolate the necessary information for a task. We model an LLM's behavior as approximate Thompson Sampling within this CGDP, and introduce a predicate-based method that decomposes an LLM's implicit search into explicit and modular operations. We then derive two plug-and-play interventions for iterative LLM agents: a persistent, predicate-based belief state that bounds context while preserving multi-hop reasoning, and a programmatic exhaustion gate that halts unproductive search without premature stopping. Across four methods and three question-answering domains, we empirically validate that replacing an LLM's implicit state with our CGDP-motivated belief state improves multi-hop reasoning by up to $11.4\%$; while the modular programmatic exhaustion detection saves up to $39\%$ of tokens without any degradation in agent performance. Ultimately, we argue that framing the LLM agent loop as a CGDP can guide the design of modular, non-interfering improvements to agentic search harnesses.

Computer-use agents are usually improved by strengthening perception: better models for reading a screenshot and choosing where to click. Yet a screenshot is only a lossy rendering of the underlying program state, e.g., the files, application backends, and DOM that hold the task data. Different states can produce the same pixels, while code can inspect and modify that state directly. StateAct is a code-first, multi-agent harness built around this distinction. Its main agent works directly with program state by using code, while a dedicated GUI subagent handles screenshot-and-click interaction on the few subgoals that need it, just 28 of 108 tasks and 1.1% of main-agent steps. The same direct access to program state also supports verification: an independent finish gate double-checks the saved result for structural failures, e.g., output that is missing, unsaved, or written to the wrong path. To stay on track over hundreds of steps, the main agent hands subgoals to fresh subagents, keeping its own context focused. On OSWorld 2.0, StateAct lifts Claude Opus 4.8 from 20.6% to 26.9% on binary success, and from 54.8% to 61.6% on partial success, at ~ 9x lower cost per task than the same model driven by screenshots alone; a code-only variant with no GUI subagent reaches only 45.9% partial, below that screenshot-based baseline's 54.8%. In general, grounding action, verification, and memory in state, what we call state-grounding, shifts the main bottleneck from perception toward reasoning: failures depend more on what the agent thinks than on what it sees.

World models enable a predictive substrate for planning and action, yet existing formulations merely answer a physical question: what/where it is, and how will it evolve. Human behavior, however, is driven by hidden mental state (what a person believes, wants, intends, feels, and considers socially permissible), so a model that tracks the physical scene but not what each agent knows and believes about it predicts the wrong action for the right-looking scene. We formulate Mental World Modeling (MWM), a generic theoretical framework that makes mental variables core components of a world model rather than posthoc rationales: MWM aintains a coupled physical-mental world state, renders a target-specific partial observation, and simulates how candidate actions jointly update both components. We instantiate the framework in MENTIS, a training-free and fully inspectable baseline that decomposes the process into state parsing, target-observation generation, action decomposition, coupled physical and mental transition, and branch-level value evaluation. On a manually constructed, quality-controlled dataset of situated decision scenarios spanning text, image, and sounding-video stories, experiments with 8 modern LLM-based world models demonstrate that explicitly modeling the mental state is essential for predicting human decisions. Deeper analyses further expose the bottlenecks of current mental world modeling. We expect MWM as a next stage of world modeling, from simulating physical scenes to simulating the minds that act in them.