Agent-Facing Information Design in LLM Tool Registries: A Preregistered Test of Rhetoric, Position and Structure

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.

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$\times$ higher accuracy loss. Our code is available at https://github.com/Trustworthy-ML-Lab/when2tool

Before an LLM agent can use a tool, a retrieval system must decide which candidate tools to show to the agent. How long should that shortlist be? Show too many tools and the model struggles to choose. Show too few and the correct tool may not appear. Most systems apply a fixed shortlist size to every query, but no standard metric exists to evaluate whether that size was appropriate. We treat the number of tools shown to an LLM agent as the object of evaluation and we apply Bits-over-Random (BoR), a chance-corrected metric that asks whether success at a given depth is better than what random selection would achieve at that same depth. We evaluate BoR across three tool-selection benchmarks, multiple scorers, and registries ranging from 20 to 3,251 tools. We then turn the same principle into a reinforcement learning (RL) reward for choosing tool shortlist depth per query. The RL agent is deliberately simple, serving as a probe of the metric rather than a proposed system. As the shortlist grows, random chance of including the correct tool rises, so the reward naturally decreases, reducing the need for an engineered depth penalty. On BFCL (370 tools), the learned policy nearly matches the coverage of showing 50 tools ($90.3\%$ vs $90.8\%$) while presenting only 7 on average. On ToolBench (3,251 tools), a fixed shortlist of 5 tools achieves higher aggregate coverage ($64.7\%$ vs $61.9\%$) but finds nothing on hard queries (correct tool ranked 6th-20th). The BoR agent finds $16.7\%$ on those same queries by searching deeper. Downstream validation with Claude Sonnet 4.6 indicates that shorter adaptive lists also improve the LLM's ability to select the right tool: $93.1\%$ versus $87.1\%$ when always shown 5 tools, widening to $76.8\%$ vs $60.9\%$ on medium-difficulty queries where the correct tool is present but not ranked first.