Lookahead-R: Budget-Aware Tool Retrieval via Execution-Centric Planning

Large language model (LLM) agents increasingly rely on invoking external tools to complete real-world tasks. Tool retrieval, which selects a small task-relevant subset from a library of thousands of tools before the agent acts, has therefore become a critical component of LLM agent pipelines. However, existing retrievers either score each tool in isolation or assemble the tool set sequentially, so the joint utility of a candidate set is never evaluated as a whole. In this paper, we propose HYSET, short for HYperedge-based SEt-level Tool retrieval. Our contributions are threefold: (i) we formulate tool retrieval as query-conditioned hyperedge prediction on a tool co-invocation hypergraph, under which the tool set itself becomes the unit of scoring and most existing retrieval paradigms reduce to restricted instances; (ii) we capture size-dependent tool compatibility through cardinality-specific interactions; and (iii) we design HYSET as a pre-selection module requiring no modification to the downstream agent. Experiments on ToolBench demonstrate that HYSET consistently outperforms state-of-the-art baselines in both tool retrieval performance and end-to-end task success. Beyond the in-domain setting, HYSET further supports zero-shot/few-shot transfer, generalizing to held-out tools/categories and unseen domains with minimal supervision.

Large language models (LLMs) augmented with external tools have demonstrated remarkable capability in solving complex real-world tasks. However, existing approaches suffer from two key challenges: brittle multi-step and multi-turn reasoning caused by incompatible tool output types and API schemas, and performance degradation under large tool catalogues. To address these, we introduce \textbf{Tool Primitives}, a design that replaces rigid API schema-based invocation with natural language as the interface for tool calling, where each tool is wrapped with an LLM interface that handles schema resolution and execution internally, enabling natural inter-tool communication for nested and multi-turn tool calling. Building on Tool Primitives, we host \textbf{ToolFace}, a centralized repository of 25,519 functions from which LLMs dynamically retrieve only the relevant tools at inference time, eliminating the need to enumerate raw API schemas in context. To orchestrate Tool Primitives and ToolFace reliably in complex settings, we further propose \textbf{HEART}, a \textbf{H}arness \textbf{E}ngineering framework via \textbf{A}gent-native, \textbf{R}eusable \textbf{T}ool Primitives, comprising a Planner, Router, and Verifier that jointly support dynamic tool invocation planning, multi-step execution, and feedback-driven recovery. Experiments on five benchmarks demonstrate that HEART outperforms SFT-based models by $10\%$ on average and surpasses GPT-5.4, Claude-4.6-Sonnet, and Gemini-3.1-Pro by $6\%$ on average while reducing API cost by up to $85\%$. On 50 real-world tasks, HEART achieves $84\%$ task completion, $3.8\times$ the average of three frontier commercial models ($22\%$).

Large language models deployed as agents over large tool catalogs face a critical tool-retrieval bottleneck. As embedding-based retrieval approaches rely on compact encoders that may under-capture specialized tool semantics, parametric tool retrieval addresses this by encoding each tool as a virtual token appended to the LLM vocabulary, fine-tuned in two stages (memorization then retrieval SFT) to use the LLM as a retriever, achieving strong performance on standard ToolBench retrieval benchmarks. Yet these benchmarks use verbose, fully-specified queries, and their evaluation applies constrained decoding that restricts outputs to valid token paths, neither reveals whether the model actually understands its tools. We introduce \textbf{ToolSense}, an open-source LLM-powered diagnostic framework that takes any tool catalog as input and automatically generates three benchmarks: a Realistic Retrieval Benchmark (RRB) with queries at three ambiguity tiers, an MCQ probing benchmark, and a QA probing benchmark. Applying ToolSense to ToolBench (~47k tools) and evaluating five parametric model training configurations reveals a knowledge-retrieval dissociation: on RRB queries, several configurations collapse by ~50-64 percentage points compared to fully-specified ToolBench benchmarks, falling below the embedding-model baseline. Additionally, despite strong retrieval performance, some models score near-random on factual probes, suggesting a knowledge-retrieval dissociation. We open-source the ToolSense framework and the ToolBench diagnostic benchmarks at https://github.com/SAP/toolsense.