Ghost Tool Calls: Issue-Time Privacy for Speculative Agent Tools

Large language models (LLMs) have increasingly moved from standalone text generation systems to agents that invoke external tools, access environments, and execute multi-step tasks. However, conventional function-calling benchmarks mainly evaluate task completion and API correctness, while privacy evaluation benchmarks typically focus on final responses or privacy judgments. Neither perspective captures purpose-bound information flow across an executed multi-tool trajectory. Motivated by this limitation in current agent evaluation, ToolPrivacyBench audits whether task-private atoms are routed only to authorized tools and downstream sinks, thereby evaluating both task completion and privacy over-disclosure during tool use. The benchmark contains 2,150 cases, including 1,150 fully synthetic privacy-sensitive business workflows and 1,000 cases adapted from existing multi-tool and function-calling benchmarks. Each case is represented by a policy knowledge base. After an agent executes against mock business backends, the evaluator compares recorded tool arguments and backend audit logs with this policy knowledge base. The evaluation covers nine widely used agents to characterize purpose-bound privacy over-disclosure. The results show that successful tool execution does not imply appropriate privacy disclosure: an agent may complete a task while transmitting unnecessary private information through intermediate tool calls. ToolPrivacyBench therefore formalizes a need-to-know disclosure boundary, under which each tool should receive only the information necessary for its stated purpose, and uses trajectory-level auditing to identify privacy over-disclosure in multi-tool workflows.

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

Tool-augmented large language model agents increasingly rely on external APIs, but standard tool schemas describe how to call a tool, not when the tool is causally appropriate or what task state it produces. Causal tool filtering addresses this gap by using lightweight contracts that specify each tool's preconditions, effects, risk level, and cost. However, manually writing and maintaining such contracts does not scale to large or changing tool ecosystems. We introduce Contract2Tool, a framework for inferring tool contracts from metadata, schemas, documentation, and execution traces. Contract2Tool converts observable tool evidence into normalized symbolic contracts that can be evaluated intrinsically and deployed inside downstream causal tool filtering. We evaluate learned contracts against gold preconditions, effects, and risk labels, and measure their downstream utility on multi-step agent tasks. Our results show that hybrid documentation-and-trace evidence produces contracts accurate enough to preserve most of the reliability and efficiency benefits of gold contracts. Learned-contract CMTF achieves 0.980 downstream success, close to 0.990 for gold-contract CMTF, while reducing visible tools from 100 to 1 and reducing average token usage from 26,172 to 2,528 relative to all-tools exposure. These results suggest that learned contracts can provide a scalable contract layer between tool schemas and reliable agent execution.