ToolChoiceConfusion: Causal Minimal Tool Filtering for Reliable LLM Agents

Tool-augmented large language model agents increasingly operate over large tool libraries, but existing evaluations often focus on whether a model can call a tool correctly rather than how the visible tool menu shapes reliability, efficiency, and safety-relevant risk exposure. We introduce ToolMenuBench, a benchmark for evaluating tool-menu construction in multi-step LLM agents. ToolMenuBench varies tool-menu size, distractor type, state-dependent task structure, and risk exposure, and reports both filter-level and downstream agent metrics, including visible-tool count, risky-tool exposure, task success, wrong-tool calls, premature actions, and token usage. In a controlled evaluation across seven model backends, three tool-menu sizes, six filtering methods, and seven evaluation settings, CMTF improves task success from 32.1% under all-tools exposure to 85.7%, while reducing average token usage by roughly 98%. Causal minimal tool filtering achieves the strongest overall tradeoff, reducing visible tools, wrong-tool calls, premature actions, and risky-tool exposure relative to unfiltered exposure, lexical filtering, state-aware filtering, and broader causal-path baselines. ToolMenuBench provides a reusable evaluation framework for studying the agent-interface problem: which tools should be visible, when they should be visible, and under what cost or risk constraints.

Tool-augmented LLM agents rely on runtime filtering to decide which tools should be visible at each step. Causal Minimal Tool Filtering (CMTF) reduces tool-choice confusion by exposing only the next causally necessary tool frontier, but it assumes that the user request has already been mapped to a symbolic goal state. In practice, requests such as "handle my appointment" or "take care of this email" may correspond to multiple possible goals. This creates wrong-goal execution, where an agent follows a valid causal tool path for an unintended objective. We introduce GIST-CMTF, a goal-state inference layer that predicts candidate symbolic goals over the same state-transition vocabulary used by CMTF, estimates ambiguity, and either applies CMTF or exposes clarification as a causal action that produces missing goal or state variables. We evaluate GIST-CMTF across seven model backends, six filtering methods, and 120 controlled tool-use tasks. GIST-CMTF achieves 97.0% task success, compared with 80.1% for top-goal CMTF and 82.9% for semantic-goal CMTF. It reduces wrong-goal execution from 19.4% under top-goal CMTF to 2.5%, while preserving the one-tool exposure of causal filtering and using substantially fewer tokens than all-tools exposure. These results suggest that reliable tool-augmented agents should validate goal state, not only tool relevance, before exposing external actions.

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.