When Steering Fails in Latent Reasoning: A Latent-to-Language Transition Gap

Chain-of-thought (CoT) reasoning often improves language-model performance by giving models additional computation before answering. However, explicit CoT expresses this computation as a sequence of autoregressively generated tokens. Latent reasoning replaces these tokens with compact continuous states, but most autoregressive latent-reasoning methods retain a left-to-right dependency among latent vectors. We introduce LLoCoT: a looped latent-reasoning framework that replaces left-to-right latent generation with iterative refinement of a compact latent workspace. A shared transformer is reapplied for a small number of refinement iterations, jointly updating the latent slots based on the prompt and the evolving workspace state. Using the refined state, a probabilistic head predicts a distribution from which latent tokens are sampled in parallel and used to condition an autoregressive decoder for answer generation. Training uses continuous representations derived from explicit CoT together with a final-answer prediction loss and likelihood-based supervision of the latent states. Across HumanEval and MBPP, LLoCoT achieves the highest mean among the evaluated methods, performing on par in accuracy with Reasoning SFT, our explicit-CoT baseline, while outperforming the base model, answer-only SFT and NF-CoT. Relative to Reasoning SFT, LLoCoT reduces time to the first answer token by approximately $36\times$ and reasoning-phase latency by approximately $42\times$, while increasing end-to-end throughput by $9.2\%$. This design replaces serial thought generation with parallel latent-slot refinement while retaining probabilistic latent modeling and autoregressive answer decoding.

Large Language Models (LLMs) increasingly rely on intermediate reasoning, yet explicit Chain-of-Thought (CoT) suffers from a linguistic space bottleneck: each thought must be decoded into tokens, causing high inference overhead. Latent reasoning moves deliberation into continuous space, but existing methods mostly learn deterministic or reward-maximizing paths, lacking a principled way to allocate probability across trajectories with different correctness and costs. We propose Latent Thought Flow (LTF), which models reasoning as variable-length continuous trajectories and trains a sampler to match a reward-induced posterior over answer quality and computation cost. We instantiate this with a continuous GFlowNet using stochastic latent transitions. To handle sparse answer supervision, we introduce an Entropy-Weighted Subtrajectory Balance objective for intermediate rewards and a reference-prior regularizer to anchor exploration. Experiments under finetuning and transfer learning settings show that LTF outperforms explicit CoT and latent reasoning baselines, improving accuracy by 9.5% while reducing reasoning length by 27.2% on average compared with strong latent reasoning baselines.

Large language models often improve reasoning by generating explicit chain-of-thought (CoT), demonstrating the importance of intermediate computation. However, textual CoT forces this computation through a discrete, serial, and communication-oriented token stream: each reasoning step must be verbalized before the model can proceed, even when the underlying update is semantic, uncertain, or only partially formed. Latent reasoning offers a higher-bandwidth alternative by performing intermediate computation in compact continuous states before committing to text. Yet existing latent-reasoning methods often sacrifice key advantages that make CoT effective in autoregressive language models, including native left-to-right generation, probabilistic sampling, compatibility with KV-cache decoding, and tractable likelihood estimation. We propose NF-CoT, a latent reasoning framework that preserves these advantages by modeling continuous thoughts with normalizing flows. NF-CoT instantiates a TARFlow-style normalizing flow inside the LLM backbone, defining a tractable probability model over compact continuous thoughts distilled from explicit CoT. Continuous-thought positions are generated by an NF head, while text positions are generated by the standard LM head within the same causal stream. This design provides exact likelihoods for latent thoughts, enables probabilistic left-to-right decoding with the original KV cache, and supports direct policy-gradient optimization in the latent reasoning space. On code-generation benchmarks, NF-CoT improves pass rates over explicit-CoT and prior latent-reasoning baselines while substantially reducing intermediate-reasoning cost.