GRACE: Step-Level Benchmark for Faithful Reasoning over Context

Chain-of-thought (CoT) reasoning is useful for monitoring language models only when the reasoning trace faithfully reflects the computation that produces the final answer. However, models can rely on prompt-to-answer shortcuts that bypass the CoT, making the visible reasoning trace misleading even when it appears plausible. We study CoT faithfulness through a structural information-flow perspective: faithful reasoning should route answer-relevant information through the mediated path from prompt to CoT to answer, rather than through a direct prompt-to-answer shortcut. This perspective yields a task-agnostic framework based on three complementary properties, sufficiency, completeness, and necessity, which we instantiate with entropy-based, masked-KL, and gradient-based diagnostics. We show that these metrics recover externally judged faithfulness differences in hinted reasoning, and identify a low-entropy failure mode of KL-based diagnostics where gradient-based measures remain more stable. Building on this analysis, we introduce update-time interventions for verifier-based on-policy RL, including attention masking, backward-only gradient masking, CoT gradients, and adversarial perturbations of prompt representations. Across hinted arithmetic, reward-hackable code repair, and DAPO-Math models trained without hints but evaluated under wrong-hint injection, our interventions shift behavioral and structural indicators toward stronger CoT mediation. In particular, they make shortcut and reward-hacking behavior more transparent in the CoT and improve task-agnostic faithfulness metrics, while in some settings also reducing wrong-hint susceptibility. Our results suggest that controlling information flow during training is a practical route toward more faithful and monitorable CoT reasoning. Code is available at https://github.com/safety-research/faithful-cot.

Chain-of-Thought (CoT) reasoning has advanced large language models (LLMs), but outcome-based supervision leads to pervasive post-hoc rationalization, producing plausible yet unfaithful reasoning chains. Most prior faithfulness assessment methods are either unscalable, expensive, or unreliable. We propose GeoFaith, a spatio-temporal framework that leverages latent geometric structure and entropy dynamics to diagnose and enforce faithful reasoning. We develop a scalable bootstrapping pipeline expanding step-level annotations from 1k to 20k samples across four domains, train an 8B faithfulness detector outperforming GPT-5 on standard benchmarks, and design a faithfulness-aware reinforcement learning framework jointly optimizing outcome correctness, process faithfulness, and trajectory consistency. Experiments show the proposed method achieves superior performance on both faithfulness detection and downstream reasoning, producing shorter, more interpretable chains without sacrificing accuracy. Our code will be made available publicly.

Chain-of-thought (CoT) prompting assumes that generated reasoning reflects a model's internal computation. We show this assumption is wrong in a specific, measurable way: models internally detect their own reasoning errors but outwardly express confidence in them. A linear probe on hidden states predicts trace correctness with 0.95 AUROC -- from the very first reasoning step (0.79) -- while verbalized confidence for wrong traces is 4.55/5, nearly identical to correct ones (4.87/5). A text-surface classifier achieves only 0.59 on the same data, confirming a 0.20-point gap invisible in the generated text. This hidden error awareness holds across three model families (Qwen, Llama, Phi), 1.5B-72B parameters, and RL-trained reasoning models (DeepSeek-R1, 0.852 AUROC). The natural question is whether this signal can fix the errors it detects. It cannot. Four interventions -- activation steering, probe-guided best-of-N, self-correction, and activation patching -- all fail; patching destroys output coherence entirely. The signal is diagnostic, not causal: a readout of computation quality, not a lever to redirect it. This delineates a boundary for mechanistic interpretability: error representations during reasoning are fundamentally different from the factual knowledge representations that prior work has successfully edited.