Is Capability a Liability? More Capable Language Models Make Worse Forecasts When It Matters Most

Forecasting has become a natural benchmark for reasoning under uncertainty. Yet existing evaluations of large language models remain limited to judgmental tasks in simple formats, such as binary or multiple-choice questions. In practice, however, forecasting spans a far broader scope. Across domains such as economics, public health, and social demographics, decisions hinge on numerical estimates over continuous quantities, a capability that current benchmarks do not capture. Evaluating such estimates requires a format that makes uncertainty explicit and testable. We propose prediction intervals as a natural and rigorous interface for this purpose. They demand scale awareness, internal consistency across confidence levels, and calibration over a continuum of outcomes, making them a more suitable evaluation format than point estimates for numerical forecasting. To assess this capability, we introduce a new benchmark QuantSightBench, and evaluate frontier models under multiple settings, assessing both empirical coverage and interval sharpness. Our results show that none of the 11 evaluated frontier and open-weight models achieves the 90% coverage target, with the top performers Gemini 3.1 Pro (79.1%), Grok 4 (76.4%), and GPT-5.4 (75.3%) all falling at least 10 percentage points short. Calibration degrades sharply at extreme magnitudes, revealing systematic overconfidence across all evaluated models.

Existing benchmarks typically report accuracy for a single model on a single run. This systematically understates real-world LLM capabilities, particularly under heterogeneous data distributions: (i) different models get different questions correct according to their specializations, and (ii) given a budget, multiple generations can be sampled and selectively retained. To quantify this gap, we introduce the Capability Frontier: a Pareto frontier over a set of models that characterizes the best achievable performance at each cost level under optimal selection across models and generations (i.e., via an oracle). Our construction corrects for two opposing biases: underestimation from single-model evaluation and overestimation from taking maxima over noisy samples. We study 21 LLMs across 16 widely used benchmarks spanning coding, reasoning, medicine, factuality, instruction following, and agentic tasks, comparing Capability Frontier performance at matched cost to each benchmark's top-performing model. Correcting for single-model evaluation yields a 54% error rate reduction; additionally correcting for single runs yields an 82% improvement, with SOTA accuracy matched at 85% cost reduction. Complementing these empirical results, we use controlled probabilistic simulations to show that higher query topic entropy produces a near-monotonic increase in the performance gap between oracle routing and the best single model. Our findings suggest collective LLM capabilities are substantially underestimated, with implications for evaluation and deployment in data-heterogeneous, multi-domain settings.

Progress in language model development is often driven by comparative decisions: which architecture to adopt, which pretraining corpus to use, or which training recipe to apply. Making these decisions well requires reliable performance forecasts, yet the two commonly used signals are fundamentally limited. Cross-entropy loss is poorly aligned with downstream capabilities, and direct downstream evaluation is expensive, sparse, and often uninformative at early training stages. Instead, we propose to construct proxy metrics by aggregating token-level statistics, such as entropy, top-k accuracy, and expert token rank, from a candidate model's next token distribution over expert-written solutions. Across three settings, our proxies consistently outperform loss- and compute-based baselines: 1) For cross-family model selection, they rank a heterogeneous population of reasoning models with mean Spearman Rho = 0.81 (vs. Rho = 0.36 for cross-entropy loss); 2) For pretraining data selection, they reliably rank 25 candidate corpora for a target model at roughly $10{,}000\times$ less compute than direct evaluation, pushing the Pareto frontier beyond existing methods; and 3) for training-time forecasting, they extrapolate downstream accuracy across an $18\times$ compute horizon with roughly half the error of existing alternatives. Together, these results suggest that expert trajectories are a broadly useful source of signal for assessing model capabilities, enabling reliable performance forecasting throughout the model development life cycle.