Induction in Both Directions: A Mechanistic Analysis of In-Context Learning in Masked Diffusion Language Models
Authors: Andy Catruna, Emilian Radoi
Organizations: National University of Science and Technology POLITEHNICA Bucharest · Academy of Romanian Scientists
Abstract
While the internal mechanisms of autoregressive (AR) transformers have been studied extensively, much less is known about diffusion language models (DLMs), an emerging alternative that generates text by iterative denoising. In this work, we study how DLMs implement induction, a mechanism behind in-context learning in which the model finds a repeated context and copies the token that followed it. Our analysis compares attention-only AR models and absorbing-mask DLMs with matched architectures. We find that DLMs learn a bidirectional induction circuit, where previous-token and next-token heads write local context into the residual stream and later induction heads use it to find and copy the answer from the matching source position. The circuit is direction-symmetric, working whether the source appears in the past or in the future. When only left context is visible, matching what an AR model sees, the DLM does not outperform its AR counterpart in induction capabilities. However, we observe it has stronger induction when both sides of the masked token are visible, pointing to bidirectional context access rather than a stronger one-sided mechanism. Beyond induction, we provide causal evidence that DLMs compute the global fraction of masked tokens and use it as an implicit timestep, even though they are given no explicit timestep embedding.
We study the transformation of autoregressive models (ARLMs) into diffusion language models (DLMs). Rather than pretraining from scratch, prior work replaces the causal attention in ARLMs with bidirectional attention and then trains the resulting model using a DLM objective. However, these approaches incur two distribution shifts. First, transitioning from a next-token prediction objective to a DLM objective can discard knowledge acquired by the ARLM during training. Second, standard DLMs suffer from a train-inference mismatch, as the training loss is defined on randomly masked sequences rather than the trajectories encountered at inference produced by confidence-based decoding. To address both challenges, we introduce an On-Policy Diffusion Language Model (OPDLM) in which On-Policy Distillation (OPD) is employed for ARLM-to-DLM transformation. Specifically, OPDLM is trained via self-OPD, where the student, an ARLM with bidirectional attention, generates its own trajectories, and the teacher, the original frozen ARLM, distills its knowledge by providing target logits on these trajectories. By training directly in an on-policy manner, OPDLM eliminates the train-inference mismatch in DLMs, while distillation from the original model enhances knowledge retention from the ARLM. Empirical results demonstrate that OPDLM requires 15x to 7,000x fewer training tokens with strong performance across a wide variety of tasks. OPDLM avoids the prohibitive cost of DLM pretraining and positions DLM transformation as a form of ARLM post-training.
Discrete masked diffusion language models support bidirectional generation and infilling, but adapting pretrained autoregressive (AR) transformers requires reconciling causal pretraining with bidirectional denoising. We study this problem at the level of attention rather than claiming AR-weight reuse itself as novel. PreDiff-LM preserves causal attention within the observed prompt while allowing full bidirectional attention within the masked target. Under a matched GPT-2 Medium, WikiText-103, 90K-step setup, this hybrid mask improves unconditional perplexity from 34.1 to 28.7 and MAUVE from 0.71 to 0.78 over uniform bidirectional attention with the same AR initialization. Attention adaptation also composes with a DiffuGPT-style objective adaptation, reaching 26.9 perplexity. Pretrained initialization reduces the steps required to reach perplexity below 50 from about 350K to 8K, although a compute-matched fine-tuned AR model remains stronger at equal scale (18.9 versus 28.7). Beyond perplexity, PreDiff-LM improves repetition, distributional quality, four zero-shot downstream tasks, and human preference over prior diffusion baselines. The results position hybrid attention as a complementary mechanism for adapting pretrained causal backbones, while making explicit the remaining quality and inference-efficiency gaps to optimized AR models.
We aim to improve the reasoning capabilities of diffusion language models (DLMs). While SFT is a popular post-training recipe for autoregressive models, its use in DLMs faces challenges and can even hurt performance, though the underlying causes remain understudied. Our analysis reveals that vanilla SFT overlooks learnability, namely what and when tokens are learned. Specifically, rare tokens are difficult to learn when most of the input is masked, whereas it is straightforward and thus of little value to learn common tokens when most of the input is unmasked. Motivated by our analysis, we propose LIFT, an efficient SFT-based post-training algorithm for DLMs. LIFT learns easy tokens when most of the input is masked and hard tokens when more context is available, thus aligning the training with the information available at different diffusion time steps. Our results show that LIFT outperforms existing SFT baselines across six reasoning benchmarks, achieving up to a 3x relative gain on AIME'24 and AIME'25. Our code is publicly available at https://github.com/divelab/LIFT.