Organizations: 1San Jose State University. · 2Worcester Polytechnic Institute. · 3George Mason University. · 4Algoverse AI Research.
Abstract
Recent latent reasoning methods, such as CODI and COCONUT, face a fundamental interpretability problem: they maintain multiple superimposed candidate traces in the hidden space at each step, unlike explicit- CoT, which follows a single transparent reasoning trace. Existing mechanistic methods show compression, shortcuts, and superposition without explaining how reasoning evolves across latent steps. To address this gap, we model latent token sequences as trajectories in representation space and apply dynamical systems analysis to characterize the evolution of reasoning. Using quantitative measures, such as step-to-step change, direction consistency, and Lyapunov sensitivity, alongside qualitative projections, such as UMAP and DMD/PHATE, we show that latent CoT exhibits structured, non-random dynamics with two distinct stability classes. CODI behaves as a stable attractor, while COCONUT behaves as an unstable expanding system, and SIM-CoT supervision tightens both behaviors without changing the underlying dynamics. This framework advances the interpretability of latent CoT reasoning dynamics and provides actionable insights for improving latent reasoning performance. Code1 and Project page2 available online.
Latent Chain-of-Thought (CoT) internalizes reasoning within continuous hidden states, offering a promising alternative to verbose discrete reasoning traces. However, robust latent reasoning remains difficult because outcome supervision provides weak learning signals and leaves latent trajectories prone to semantic drift. In this work, we analyze Latent CoT from an information-theoretic perspective and identify this failure as a dual collapse: gradient attenuation along the optimization path and representational drift in the latent space. We further decompose process supervision into two complementary dimensions: Trajectory Supervision, which injects dense stepwise reasoning signals, and Space Supervision, which preserves the semantic structure of the latent manifold. Our analysis shows that rigid geometric compression can collapse the reasoning space, whereas generative reconstruction provides a more flexible semantic anchor that better preserves information capacity. To measure these effects, we introduce the Unified Latent Probe (ULP), which quantifies the mutual information between latent trajectories and explicit reasoning steps. Experiments reveal a clear Information-Performance Binding: reasoning accuracy depends on the information fidelity preserved in the latent chain. These findings provide a principled framework for latent reasoning supervision and suggest shifting from geometric imitation toward mutual information maximization. Our code is available at \href{https://github.com/EIT-NLP/Supervision-in-Latent-CoT}{this repository}.
Large Language Models (LLMs) have shown impressive performance on complex tasks through Chain-of-Thought (CoT) reasoning. However, conventional CoT relies on explicitly verbalized intermediate steps, which constrains its broader applicability, particularly in abstract reasoning tasks beyond language. To address this, there has been growing research interest in \textit{latent CoT reasoning}, where the reasoning process is embedded within latent spaces. By decoupling reasoning from explicit language generation, latent CoT offers the promise of richer cognitive representations and facilitates more flexible, faster inference. This paper aims to present a comprehensive overview of this emerging paradigm and establish a systematic taxonomy. We analyze recent advances in methods, categorizing them from token-wise horizontal approaches to layer-wise vertical strategies. We then provide in-depth discussions of these methods, highlighting their design principles, applications, and remaining challenges. We hope that our survey provides a structured foundation for advancing this promising direction in LLM reasoning. The relevant papers will be regularly updated at https://github.com/EIT-NLP/Awesome-Latent-CoT.
Chain-of-thought (CoT) prompting improves reasoning in large language models (LLMs) by externalizing intermediate computation as discrete text tokens, but this textual interface also introduces redundancy and inference overhead. Latent reasoning offers a promising alternative by carrying part of the computation in continuous representations. However, existing methods typically predefine when latent computation is invoked and how it is allocated during decoding, leaving a key problem unresolved: when to invoke latent computation, what type of computation to perform, and how much budget to allocate. We propose \textbf{Ty}ped \textbf{L}at\textbf{e}nt \textbf{R}easoning (Tyler), a typed and budget-aware framework for latent reasoning during autoregressive decoding. Tyler learns a policy that, at each decoding step, chooses between emitting a text token and switching to a latent computation module specialized for a particular reasoning function. Once invoked, an operator maps the current reasoning state into latent tokens that support global planning, local state updates, or reusable procedural abstraction. Across extensive experiments on three backbone LLMs, Tyler improves accuracy by up to 14.49 points over CoT and by up to 4.30 points over the strongest competing baseline. It further generalizes across diverse reasoning domains and achieves the best final-stage performance with the lowest forgetting.