Belief-State Engine: Augmenting LLMs for Principled Planning Under Partial Observability

Large language models (LLMs) are increasingly deployed on long-horizon tasks in partially observable environments, where they must act while inferring and tracking a complex environment state over many steps. This leads to two challenges: partial observability requires maintaining uncertainty over unobserved world attributes, and long interaction history causes context to grow without bound, diluting task-relevant information. A principled solution to both challenges is a belief state: a posterior distribution over environment states given past observations and actions, which compactly encodes history for decision making regardless of episode length. In LLM agents, however, the open-ended nature of text makes it unclear how to represent such a distribution. Therefore, we introduce Agent-BRACE: Agent Belief state Representation via Abstraction and Confidence Estimation, a method that decouples an LLM agent into a belief state model and a policy model, jointly optimized via reinforcement learning. The belief state model produces a structured approximation of the belief distribution: a set of atomic natural language claims about the environment, each annotated with an ordinal verbalized certainty label ranging from certain to unknown. The policy model conditions on this compact, structured approximate belief rather than the full history, learning to select actions under explicit uncertainty. Across long-horizon, partially observable embodied language environments, Agent-BRACE achieves an average absolute improvement of +14.5% (Qwen2.5-3B-Instruct) and +5.3% (Qwen3-4B-Instruct), outperforming strong RL baselines while maintaining a near-constant context window independent of episode length. Further analysis shows that the learned belief becomes increasingly calibrated over the course of an episode as evidence accumulates.

Large language models (LLMs) are being used as policies for autonomous decision-making and planning in many domains. Despite their strong reasoning capabilities, LLMs struggle with long-horizon tasks, especially under partial observability. World models are a promising way to enhance policy performance, both during training and inference. During inference, agents currently use world models to simulate the consequences of candidate actions before committing to an action, which can improve decision-making. However, we argue that simulation alone is an incomplete interface for decision-making under partial observability: simulation doesn't adequately capture uncertainty about the current state, which agents may need for accurate decision-making. We address this limitation with Belief-Based World Models (BB-WMs), which model and maintain a belief that LLMs can query to access information on what is known and uncertain about the current state. Before developing methods to learn accurate BB-WMs, we first ask a more fundamental question: does exposing a world model's belief directly to an LLM policy improve decision-making? Our results show that giving LLM agents access to world model beliefs improves task performance under partial observability, while remaining complementary to existing simulation-based world models. Code is released at https://github.com/skumar-ml/belief-world-models.

LLM agents that operate over long context depend on external memory to accumulate knowledge over time. However, existing methods typically store each observation as a single deterministic conclusion (e.g., inferring "API~X failed" from temporary errors), even though such observations are inherently partial and potentially ambiguous. By committing to one conclusion and discarding uncertainty, these methods introduce self-reinforcing error: the agent acts on the stored conclusion, never revisits alternatives, and reinforces the conclusion over time. To address this issue, we propose BeliefMem, which shifts the memory paradigm from committing to a single conclusion per observation to retaining multiple candidate conclusions with their probabilities. Concretely, BeliefMem stores the candidate conclusions as separate memory entries, each carrying a probability that is updated via Noisy-OR rules as new observations arrive. At retrieval, all candidates surface together with their probabilities, keeping alternatives visible to the agent. Since each conclusion in memory retains its probability, BeliefMem preserves the uncertainty that the deterministic paradigm discards, enabling the agent to act with high confidence on well-evidenced knowledge while retaining the capacity to update its confidence when new evidence arrives. Empirical evaluations on LoCoMo and ALFWorld benchmarks show that, even with limited data, BeliefMem achieves the best average performance, remarkably outperforming well-known baselines. More broadly, such probabilistic memory produces substantial gains and explores a new direction for agent memory in partially observable environments.