LLM Tool Use
LLM: Large Language Model
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30 papers in the last four weeks, up 233% on the four weeks before. 0.3% of all new papers.
Latest papers 185
For tool-augmented language models, comparing natural-language reasoning with code-execution pipelines is difficult because the comparison changes both the intermediate representation and the execution mechanism. We separate these factors with an intermediate intervention: the model expresses its reasoning as executable code, and the language model simulates that code in context to produce an answer. On a 40-task verifiable algorithmic benchmark, deterministic code execution outperforms natural-language reasoning by +31.6pp. We observe that the intermediate intervention is not meaningfully different from natural-language reasoning (+0.15pp). These results suggest that, in our evaluated setting, changing the intermediate representation alone does not explain the tool-use advantage, providing evidence for the performance gains requiring reliable external execution. We formalize this intuition with a simple statistical decision-theoretic model that characterizes when execution dominates end-to-end risk in our disentangled trace-generation/execution regime. We validate our theory using a reconstruction intervention that leverages a proxy language model to infer natural-language reasoning traces from code representations, recovering performance comparable to the original natural-language reasoning pipeline. All experiments are at https://github.com/TerryTong-Git/ToolProj.
ToolMenuBench: Benchmarking Tool-Menu Filtering Strategies for Reliable and Efficient LLM Agents
Tool-augmented large language model agents increasingly operate over large tool libraries, but existing evaluations often focus on whether a model can call a tool correctly rather than how the visible tool menu shapes reliability, efficiency, and safety-relevant risk exposure. We introduce ToolMenuBench, a benchmark for evaluating tool-menu construction in multi-step LLM agents. ToolMenuBench varies tool-menu size, distractor type, state-dependent task structure, and risk exposure, and reports both filter-level and downstream agent metrics, including visible-tool count, risky-tool exposure, task success, wrong-tool calls, premature actions, and token usage. In a controlled evaluation across seven model backends, three tool-menu sizes, six filtering methods, and seven evaluation settings, CMTF improves task success from 32.1% under all-tools exposure to 85.7%, while reducing average token usage by roughly 98%. Causal minimal tool filtering achieves the strongest overall tradeoff, reducing visible tools, wrong-tool calls, premature actions, and risky-tool exposure relative to unfiltered exposure, lexical filtering, state-aware filtering, and broader causal-path baselines. ToolMenuBench provides a reusable evaluation framework for studying the agent-interface problem: which tools should be visible, when they should be visible, and under what cost or risk constraints.
Risk-Aware LLM Agents for Geospatial Data Retrieval: Design and Preliminary Adversarial Evaluation
We present an LLM-driven framework for retrieving remote sensing data from cloud-based geospatial catalogues using natural language queries. The system converts user intent into structured API calls, enabling efficient access to satellite imagery and environmental datasets. The architecture integrates three agents: Guardrail for safety and policy enforcement, General-QA for intent interpretation, and Recommender-Analyst for schema-aware API call generation. This coordinated design ensures reliable, semantically aligned interaction with external data services. The modular framework is portable across platforms through API schema substitution and supports applications in environmental monitoring, disaster response, and climate analysis. It establishes a scalable interface between user intent and geospatial infrastructure, enabling streamlined and automated Earth observation workflows. Preliminary experiments under adversarial multi-turn settings show that prompt-level safety instructions improve robustness, although rare high-impact failures persist in API manipulation scenarios and highlight the need for adaptive, system-level defenses that balance safety, usability, and cost efficiency, which motivates the use of our intercept-level Guardrail agent.
From Chatbot to Digital Colleague: The Paradigm Shift Toward Persistent Autonomous AI
Large Language Models (LLMs) are undergoing a fundamental transformation from conversational generators into integrated AI systems capable of reasoning, action, memory, and self-improvement. We conceptualize this transition as a shift from Chatbot to Digital Colleague: from conversational answers to persistent work. We organize this transition along two tightly coupled dimensions. First, at the cognitive core level, LLMs are advancing from Chatbot-era "fast thinking" systems driven by next-token prediction toward Thinking LLMs that leverage inference-time computation, Chain-of-Thought reasoning, reflection, process supervision, and reinforcement learning to support more deliberate and reliable cognition. Second, at the tool-augmented task execution level, LLMs are progressing from tool-calling Agents that invoke external resources in an ad hoc manner toward OpenClaw-style workstation systems (OpenClaw) equipped with persistent Workspaces, skills, verification loops, and governance. The "Workspace + Skill" paradigm makes episodic tool use colleague-like via state persistence, reusable procedures, task closure, and experience reuse. We examine data construction shifts from instruction-response pairs to State-Action-Observation trajectories and evaluation from static benchmarks to sandboxed, auditable, self-evolving AI ecosystems.
HyperTool: Beyond Step-Wise Tool Calls for Tool-Augmented Agents
Tool-augmented LLM agents commonly rely on step-wise atomic tool calls, where each invocation, observation, and value transfer is exposed in the main reasoning trace. This creates an \emph{execution-granularity mismatch}: locally deterministic tool workflows are unfolded into repeated model-visible decisions, consuming context and forcing the model to manage low-level dataflow in the trace. We introduce \textbf{HyperTool}, a unified executable MCP-style tool interface that changes the model-visible unit of tool execution. A model invokes HyperTool with a code block that can call existing tools through their original schemas, manipulate returned values, and pass intermediate results locally, folding deterministic tool subroutines into a single outer call. To train models to use this interface, we synthesize HyperTool-format trajectories from cross-tool compositional tasks and verify them in real MCP environments. On MCP-Universe, HyperTool improves average accuracy from 15.69% to 35.29% on Qwen3-32B and from 9.93% to 33.33% on Qwen3-8B, and surpass GPT-OSS and Kimi-k2.5 on average accuracy, showing that our HyperTool can substantially improve multi-step tool use.
Evoflux: Inference-Time Evolution of Executable Tool Workflows for Compact Agents
Compact language models (LMs) reduce cost, latency, and deployment risk for tool agents. Yet MCP-style tool use requires more than isolated function calling: an agent must discover tools from live catalogs, satisfy schemas, preserve dependencies across intermediate outputs, and ground final responses in executed evidence. Small planners often generate plausible workflow graphs that fail under tool resolution, parameter validation, dependency tracking, or execution. We argue that this failure mode is poorly handled by small-corpus distillation. A few hundred teacher traces can teach workflow format, but rarely cover the recovery behavior needed to repair failed plans over changing tool catalogs. We introduce Evoflux, an inference-time evolutionary search method that treats compact tool use as the repair of executable tool workflows. It evolves typed workflow graphs through structured edits, execution feedback, adaptive intensity, meta-guided redesign, and diversity pruning. On held-out MCP-Bench tasks spanning live MCP servers and 250 tools, Evoflux raises execution feasibility from roughly 3% to 17-24% across small planners. In contrast, SFT and SFT+DPO on the same search-mined data match, underperform, or collapse below zero-shot performance; ReAct reaches higher peaks, but with higher variance and token cost. These results show that execution-grounded search is more reliable under scarce teacher-trace budgets.
Pushing the Limits of LLM Tool Calling via Experiential Knowledge Integration and Activation
Large language models (LLMs) rely on tool use to act as autonomous agents, yet often fail in multi-step execution due to insufficient tool-related knowledge and ineffective knowledge activation. Therefore, we present a systematic study on how knowledge influences tool-use performance, covering the stages of knowledge acquisition, activation, and internalization. In the knowledge acquisition stage, we acquire and evaluate various forms of experiential knowledge, and our analysis shows that simple instance-level knowledge can already provide strong and reliable gains, while abstract intent-level knowledge offers limited benefits. At inference time, to activate knowledge, we find that prompting LLM to expand the depth of reasoning yields diminishing returns, whereas expanding the width of reasoning by parallel sampling with aggregation more effectively activates latent experiential knowledge. At training time, for knowledge internalization, post-training with knowledge-augmented data further improves performance, with reinforcement learning outperforming supervised fine-tuning. Based on these insights, we propose the Knowledge-Augmented Tool Execution (KATE), a knowledge-augmented tool execution framework that integrates experiential knowledge with reasoning-width-expanded inference and knowledge-aware training. Experiments on BFCL-V3 and AppWorld demonstrate consistent and substantial improvements over strong baselines across model scales. Our Code is available at https://github.com/hypasd-art/KATE.
Less Context, Better Agents: Efficient Context Engineering for Long-Horizon Tool-Using LLM Agents
Large language models deployed as autonomous agents for enterprise workflows face a key challenge: verbose tool responses from enterprise systems can cause context overflow, stale-state errors, and high inference cost. We study this problem in automated expense itemization in Microsoft Dynamics 365 Finance and Operations using Model Context Protocol tools. We evaluate four GPT-5 configurations on a 50-task hotel expense benchmark: no user model, full conversation history, context pruned to the last 5 tool call/response pairs, and pruning with automated summarization. Results are averaged across 5 independent runs, with the user model held constant for the context-engineering comparison. The no-user-model baseline achieves only 8.0% complete itemization. Full-context retention improves completion to 71.0%, but consumes 1,480,996 tokens and 14.56 hours per benchmark. Pruning to the last 5 tool calls improves completion to 79.0% while reducing token use to 535,274 and runtime to 5.39 hours. Adding summarization achieves the best result: 91.6% complete itemization and 99.64% average amount itemized, with 553,374 tokens and 5.79 hours. We further report confidence intervals, effect-size analysis, sensitivity over pruning and summary windows, failure analysis, results across five expense types grouped into three categories, and cross-model evidence with Claude Sonnet 4.5. These results show that, for this class of enterprise tool-use workflow, selective retention of recent tool interactions plus compact summarization can improve both reliability and efficiency compared with full-history retention.
QueryWeaver: Reliable Multi-Tool Query Execution Planning via LLM-Based Graph Generation
Many real-world queries over personal data span multiple applications and require structured planning, as individual tools expose only partial information. While LLMs show strong reasoning and tool use, reliably executing multi-step, cross-tool queries remains challenging. We introduce a system that converts natural language queries into structured graphs and executes them via a deterministic planner. Our approach uses depth-first search to resolve dependencies and combine results across tools, improving reliability and enabling queries beyond traditional keyword-based search. We demonstrate high accuracy even with smaller or locally hosted LLMs.
MemToolAgent: Leveraging Memory for Tool Using Agents Based on Environment and User Feedback
Modern large language model (LLM) agents can use external tools to help users solve complex tasks. However, for problems that require learning from long-term historical events or from previous agent-environment interactions, LLM agents are required to use memory mechanisms to store and retrieve experiences. While sophisticated memory systems exist for dialogue agents, few studies have empirically examined how to improve agents' tool-using capabilities through past user-agent conversations. We propose MemToolAgent, a framework that improves tool use through memory management. Our approach contains a memory extraction module that processes past experiences into structured memory entries, and a retrieval module that dynamically selects a subset of the stored memory entries. This enables more personalized and accurate responses aligned with user preferences and feedback without requiring LLM fine-tuning. In summary, this work has three main contributions: (1) a unified memory entry format that improves both general-purpose and personalized tool use without LLM fine-tuning, (2) a reflection-based memory extraction that uses environment and user feedback to distill wrong executions into critiques to store, and (3) a retrieval module that chooses how many past experiences to use based on the memory similarity distribution. MemToolAgent achieves 29%, 80%, and 17% relative improvements compared to strong baselines on the WorkBench, NESTFUL, and PEToolBench benchmarks, respectively.
Are Large Language Models Suitable for Graph Computation? Progress and Prospects
Large language models (LLMs) have been increasingly explored for graph computation, where tasks require reasoning over structured relationships and algorithmic operations. Yet, it remains unclear when LLMs can reliably support such computation and how they should be incorporated into graph-solving pipelines. Existing surveys at the intersection of LLMs and graphs primarily focus on graph learning, text-attributed graphs, or graph-language modeling. To bridge this gap, we provide a comprehensive review of LLMs for graph computation through a role-based taxonomy. Specifically, we identify two major paradigms: i) LLMs as executors, where models directly solve graph tasks from graph descriptions and instructions; and ii) LLMs as planners, where models formulate problems, decompose reasoning steps, and invoke external tools or agents for execution. Based on this taxonomy, we analyze the strengths and limitations of current methods. Our review indicates that LLMs are promising for simple, small-scale tasks, but remain unreliable for large-scale and exactness-demanding tasks. Finally, we summarize available datasets and suggest four future directions.
Translate-R1: Cost-Aware Translation Tool Use via Reinforcement Learning
The performance gap across languages in LLMs is well documented, and closing it natively requires pretraining or fine-tuning on corpora that, for most languages, do not exist. Translation offers an alternative: converting an input into the model's dominant language unlocks its full capabilities at once. Applying translation to every input, however, is wasteful for languages the model already handles, while leaving the choice to the model fails in the opposite way, as LLMs are overconfident and skip the tool even when they cannot understand the input. Prior work resolves this with language-specific rules, domain heuristics, language identifiers, or external routers, each requiring manual engineering. We instead learn a single policy that decides when to translate from reward alone, developing language- and domain-adaptive introspection that assesses its own comprehension and invokes translation only when it cannot solve a task natively. Using data built by our answer-preserving translation pipeline, we continue RL on the post-trained Qwen3-4B across 22 languages in 3 resource tiers (High, Low, XLow) and 5 domains, and introduce confidence-gated GSPO for cost-sensitive tool use. The gated policy lifts reward over the baseline by +4.6 on High, +23.5 on Low, and +17.5 on XLow. Against an unconstrained policy that almost always translates, it preserves full reward at 63% of the cost and is Pareto-optimal across 87% of the cost-sensitivity range. Additionally, to simulate behavior on a completely unseen language, we create 2 synthetic languages, where our gated policy improves +18.7 over the overconfident baseline that underutilizes the tool even on these incomprehensible inputs. The policy transfers zero-shot to 9 held-out languages, and we analyze how tool use emerges over training, per language and per domain.
NTILC: Neural Tool Invocation via Learned Compression
Agentic tool-calling language models depend on large registries of callable APIs, functions, and local actions. Placing full tool specifications directly in the prompt incurs a cost that scales linearly with the size of the tool registry, rapidly consuming the context budget. As the registry grows, this leads to higher latency and degrades selection accuracy, particularly due to interference from irrelevant tools. We overcome these limitations by introducing NTILC, a neural tool selection and invocation framework that replaces in-context registry look-up with learned latent retrieval. NTILC maps both user intent and tool specifications into a shared embedding space, enabling tool selection via external retrieval rather than in-context lookup. The language model is conditioned only on the selected tool schema, allowing for precise, constrained argument generation. Central to our approach is a signature-aware composite objective, which augments semantic similarity with constraints derived from tool signatures (e.g., argument schema, type compatibility, and return types). By combining Circle Loss with a Functional Margin Loss, the model enforces separation between tools that are semantically similar but incompatible under their execution signatures. We evaluate NTILC on public tool-selection and function-calling datasets and report context token usage, retrieval accuracy, and selection latency metrics. Across these settings, NTILC reduces context window consumption by over 95% and inference latency by up to 74% compared to long-context ICT baselines.
ToolChoiceConfusion: Causal Minimal Tool Filtering for Reliable LLM Agents
Large language model agents increasingly rely on external tools, but larger tool menus can reduce reliability and efficiency by increasing wrong-tool calls, premature actions, and token cost. Existing tool-selection methods often optimize semantic relevance, exposing tools whose names or descriptions match the user request. We argue that relevance is insufficient: a tool may be related to the task while still being unnecessary or premature at the current step. We propose Causal Minimal Tool Filtering (CMTF), a training-free method that selects tools by causal sufficiency. CMTF uses lightweight precondition-effect contracts to expose only the minimal next-step tool frontier needed to advance from the current state toward the user goal. Across multi-step tool-use tasks, we compare CMTF with all-tools exposure, keyword retrieval, state-aware filtering, and causal-path ablations, measuring task success, wrong-tool calls, premature actions, tool exposure, and token cost. In the main benchmark with 102 tasks, 100 tools, four LLM backends, and 2448 task-method-model runs, CMTF matches the strongest causal baseline in aggregate success while reducing visible tools from 100 to one per step and reducing token usage by about 90% relative to all-tools exposure.
ToolSense: A Diagnostic Framework for Auditing Parametric Tool Knowledge in LLMs
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.
Design a Reliable LLM-Integrated Interface for Mortality Forecasting
Mortality forecasting plays an important role in actuarial and policy decision-making, but its implementation remains technically complex and inaccessible to non-expert users. This project proposes a reliable large language model (LLM)-integrated interface that improves usability while maintaining statistical power. The LLM is designed as a constrained orchestration layer that translates natural-language inputs into structured configurations for a deterministic forecasting pipeline. A three-phase methodology is employed to ensure accuracy, usability, and transparency. First, a baseline pipeline is implemented using the CoMoMo package, reproducing established mortality forecasting results. Second, the pipeline is extended to generate multi-step forecasts using rolling-origin evaluation and mean squared error (MSE). Third, a prototype interface uses a local LLM to handle users' forecasting requests in plain language. The system demonstrates that LLMs can enhance accessibility without compromising reproducibility, transparency, or actuarial validity in high-stakes analytical workflows.
When Tools Fail: Benchmarking Dynamic Replanning and Anomaly Recovery in LLM Agents
Existing benchmarks evaluate Tool-Integrated Reasoning (TIR) in LLMs on idealized ''happy paths'', largely overlooking real-world tool failures. We introduce ToolMaze, a benchmark for dynamic path discovery and error recovery in TIR agents. To separate systematic replanning from blind trial-and-error, ToolMaze adopts a two-dimensional design: DAG-based topological complexity and a taxonomy of tool perturbations (explicit/implicit, transient/permanent). Evaluations show that perturbations degrade performance across nearly all models, with the sharpest drops under implicit semantic failures. Driven by systemic over-trust in corrupted outputs, Perturbation Recovery Rate (PRR) plummets by around 37% in these scenarios, while complex topologies trap agents in futile trial-and-error loops. Crucially, agentic fault-tolerance improves with model scale slower than basic task execution, highlighting dynamic replanning as a distinct bottleneck unaddressed by model scaling or prompting. Data and code are available at https://github.com/Zhudongsheng75/ToolMaze.
PyraMathBench: Evaluating and Improving Mathematical Capability in Large Language Models
Despite the pivotal role of numerical reasoning as the cornerstone of mathematical capabilities in large language models (LLMs) across applications, few benchmarks evaluate LLMs by integrating numerical processing and mathematical reasoning, hindering the interpretability of failures in math tasks. We introduce PyraMathBench, a comprehensive hierarchical benchmark with 32,505 questions derived from 7,404 math word problems, spanning 4 key cognitive aspects, 14 subcategories, and 2 modalities. Experiments reveal that LLMs' performance is severely compromised by inadequate numerical computation and weak handling of abstract numerical questions. To address this, we propose the Smart Optimization & Learning-based VErsatile module (SOLVE) and Interactive Relative Policy Optimization (IRPO), which enhance LLMs' numerical-mathematical synergy via efficient tool calls (fuzzy matching and low-quality call rejection). Comparative experiments show Qwen-2.5 achieves a 5.0 score improvement with SOLVE and IRPO training.
Beyond Ideal Instruction: A Comprehensive Framework for Evaluating LLMs in Realistic Interactions
Despite great advances in tool-use capabilities of large language models (LLMs), existing evaluation benchmarks struggle to fully align with real-world scenarios. Such benchmarks mostly rely on simulated idealized user assumptions and lacks experience-oriented evaluation. These limitations fail to account for the ambiguity, uncooperative behaviors, and shifting intentions characteristic of real-world users. To fill this gap, we propose RUT-Bench, a dedicated benchmark designed to assess LLMs under diverse Real-world User Tool calling scenarios. RUT-Bench supports high-fidelity simulations covering both ideal rational patterns and heterogeneous non-ideal behaviors across single-turn and multi-turn dialogues. We conduct comprehensive evaluations on 19 widely adopted open-source and proprietary LLMs using our benchmark. Experimental results reveal that no tested LLMs achieve an overall success rate above 40%, and nearly all of them experience noticeable performance drops when facing more complicated non-ideal user inputs. Our code and data is available at https://github.com/Miaow-Lab/RUT-Bench.
AgentPLM: Agentic Protein Language Models with Reasoning-Augmented Decoding for Protein Sequence Design
Protein language models (PLMs) are passive oracles: they generate sequences in a single forward pass with no mechanism to consult external biophysical feedback or redirect generation when a candidate violates thermodynamic or structural constraints. We introduce AgentPLM, which addresses this by equipping a pre-trained PLM with i) Reasoning-Augmented Decoding (RAD), which interleaves autoregressive generation with tool calls (ESMFold, FoldX, AutoDock Vina), and ii) Contrastive Agent Policy Optimisation (CAPO), a trajectory-level extension of direct preference optimisation that trains the policy end-to-end to learn when oracle feedback is informative rather than merely imitating high-fitness sequences. We evaluate AgentPLM on benchmark tasks spanning de novo enzyme design, antibody optimisation, thermostability, PPI interface design, and zero-shot fitness prediction with standardised oracle APIs and controlled sequence-identity splits. AgentPLM achieves state-of-the-art results with a gain in antibody top-10% hit rate over the strongest passive baseline, providing mechanistic evidence of online error correction without explicit backtracking.
MAVEN: Improving Generalization in Agentic Tool Calling
Generalization across agentic tool-calling environments remains a central challenge for reliable agentic reasoning systems. Although large language models achieve strong results on individual benchmarks, their ability to compose reasoning strategies, preserve intermediate states, and coordinate tools across domains remains underexplored. We present MAVEN (Modular Agentic Verification and Execution Network), a lightweight symbolic reasoning scaffold for structured decomposition, adaptive tool orchestration, and intermediate verification. We evaluate MAVEN across established tool-calling benchmarks, including BFCL v3, TauBench, Tau2Bench, AceBench, and introduce MAVEN-Bench, a stress-test benchmark for multi-step mathematical and physical reasoning with explicit verification and adversarial task composition. MAVEN-Bench exposes a substantial gap between partial reasoning quality and end-to-end task success; in direct MAVEN-Bench runs, MAVEN improves its GPT-OSS-120b base model from 48% to 71% accuracy without additional training. It also remains competitive with frontier proprietary baselines while using an open-weight backbone with an estimated cost ratio of roughly 1/10, suggesting that lightweight verification-centered scaffolds can strengthen compositional reasoning and motivate more process-aware evaluation of agents in the wild.
Notation Matters: A Benchmark Study of Token-Optimized Formats in Agentic AI Systems
Large language models in Agentic AI systems consume tool schemas and execution results and emit tool invocations as structured data. The default language for that exchange, JSON, was designed for application-to-application interchange rather than token efficiency, so its structural elements impose substantial token overhead. Recent work proposes token-optimized alternatives such as TOON (Token-Oriented Object Notation) and TRON (Token Reduced Object Notation) as more compact replacements, but these formats have been evaluated only on isolated comprehension or generation tasks. Whether their token reductions hold inside end-to-end agentic loops therefore remains an open question. We evaluate TOON and TRON on four agentic benchmarks (BFCL, MCPToolBenchPP, MCP-Universe, StableToolBench) and five open-weight LLMs, decoupling input compression from output compression to measure comprehension and generation independently. TRON reduces tokens by up to 27% with accuracy within 14pp of the JSON baseline. TOON achieves up to 18% reduction at a similar 9pp accuracy cost, but additionally cascades on multi-turn parsing failures and collapses parallel tool-call output for most models. The code is available at: https://github.com/lkutschka/notation-matters
ParaTool: Shifting Tool Representations from Context to Parameters
Tool calling extends large language models (LLMs) by enabling grounded interaction with external executable interfaces, thereby supporting environment-coupled problem solving. However, mainstream in-context learning (ICL) approaches typically incorporate detailed tool documentation and usage examples directly into the context. This results in substantial inference overhead and heightened risks of hallucination as the context length grows. Conversely, while tuning-based methods improve general tool-calling capabilities, they often fail to effectively internalize the specific details of previously seen tools, thereby retaining a dependency on in-context documentation. To address these limitations, we propose ParaTool, a framework that projects each tool into a dedicated, loadable set of parameters. By equipping a dynamic integration of these parameterized tools, the LLM can perform tool calling without relying on in-context documents or examples. Specifically, our approach consists of three stages: (1) parametric tool pre-training encapsulates the knowledge of different tools into independent parameter modules; (2) soft tool selection employs a gating network to dynamically weigh and aggregate relevant tool parameters; and (3) parametric tool fine-tuning jointly updates tool parameters to align the training and inference processes. Experiments on Stable ToolBench and BFCL demonstrate that ParaTool significantly outperforms strong ICL-based baselines, achieving superior performance while reducing computational complexity.
DeltaMCP: Incremental Regeneration via Spec-Aware Transformation for MCP servers
The rapid development of LLMs coupled with the introduction of Model Context Protocol (MCP) has revolutionized how intelligent agents interact with APIs through deterministic and structured methods \cite{ModelContextProtocolIntro2025}. While some existing systems like AutoMCP attempt to automate a previously completely manual process of generating MCP servers, they fail to address the recurring challenge of maintaining synchronization between evolving enterprise-level APIs and their corresponding MCP toolset implementation \cite{mastouri2025makingrestapisagentready}. This paper introduces DeltaMCP, a specification-aware, incremental regeneration tool for enterprise-grade MCP servers. DeltaMCP enables developers to only update the affected tooling of MCP servers, given a new release of it's corresponding service's OpenAPI specification. Using Azure REST API specifications as the evaluation dataset, DeltaMCP is benchmarked against baseline full generation methods on generation quality and system performance. The results demonstrate the reduction in developer overhead through DeltaMCP whilst improving maintainability and version consistency. This research offers a scalable approach for enterprises seeking to maintain high-fidelity, up-to-date MCP server infrastructures for LLM-based systems.
Knowing When to Ask: Segment-Level Credit Assignment for LLM Tool Use
Humans know when to reach for help e.g. warrants a calculator while does not. Language models do not. Prompt-based approaches can instruct a model when to invoke tools, but this scaffolding does not teach it to recognize the boundary of its own knowledge. RL approaches that assign a single outcome reward to the whole trajectory fare no better: trajectory-level credit cannot isolate which tool call in a successful episode actually helped, nor penalize unnecessary calls. We propose \textbf{CARL} (\textbf{C}ompetence-\textbf{A}ware \textbf{R}einforcement \textbf{L}earning), which trains a critic on the model's own rollouts to learn where parametric knowledge suffices and where it needs external help. By decomposing each rollout at natural tool-use boundaries (e.g., code fence delimiters and context block transitions), CARL assigns independent credit to each segment from a single binary outcome, without external judges or step-level annotations. As a result, erroneous tool calls, incorrect extractions, and unnecessary calls each receive appropriately signed advantages. The trained critic captures the model's domain competence: it separates parametrically solvable from tool-dependent questions with AUC 0.93 at 7B. On five benchmarks spanning arithmetic, multi-hop factual QA, and numerical reasoning over financial tables, CARL improves exact-match accuracy by 6.7 points at 7B and 9.7 points at 3B over the best RL baseline, with the largest gain (+8.3 EM at 7B, +9.0 EM at 3B) on Musique. The model issues 53% fewer tool calls on parametrically answerable questions while remaining EM points more accurate on them. Gains are largest at small scale: the 3B improvement is the 7B improvement, suggesting that knowing when to ask disproportionately benefits models with smaller parametric memory.
Tool-Call Dependency Structure is Linearly Decodable in LLM Agent Residual Streams
Tool-using LLM agents produce trajectories whose calls form a directed dependency graph: earlier tool outputs supply arguments to later calls. Whether this execution structure is represented inside the model is unknown; prior structural probes have targeted static code or chain-of-thought text, not an agent's run-time call graph. A low-capacity edge probe on the residual stream of Qwen3-32B decodes the tool-call dependency graph well above both a Hewitt--Liang random-label control and a positional baseline. A counterfactual contrast between value corruption and structural perturbation indicates the signal tracks abstract topology rather than identifier values, and replicates under an independent, non-substring oracle. The non-positional component replicates on three further interactive multi-hop benchmarks and attenuates as call order alone becomes a sufficient proxy for dependency, vanishing in single-shot planning. Per-layer activation patching shifts the probe at a later, non-patched boundary, evidence that the representation propagates rather than passively reads out, though the realised tool call does not move. To our knowledge this is the first structural probe of an LLM agent's runtime tool-call dependency graph. Our claims concern representation, not behavioural control, and span two model families and one primary domain.
Tool-Schema Compression Enables Agentic RAG Under Constrained Context Budgets
Agentic RAG systems that equip language models with dozens to hundreds of tool definitions face a critical resource conflict: tool schemas consume the same context window needed for retrieval-augmented generation. We present the first systematic study of this tool-context trade-off, evaluating 14 models spanning 1.5B-32B local models plus one frontier API model across 6,566 controlled API calls at three context budgets (8K, 16K, 32K) with 28 tool definitions. Applying TSCG conservative-profile compression (44-50% schema token savings), we observe a binary enablement effect: at 8K tokens, JSON-schema tool definitions overflow the context window entirely, yielding near-zero EM (2.6% average), while compressed schemas restore RAG functionality with +20.5 pp average exact-match lift across all eight models (+24.7 pp among the six exhibiting full enablement). At 32K -- where both formats fit -- four of five tested models show delta <= 1 pp, confirming the effect is purely budget-driven. External validation on HotpotQA (50 multi-hop questions) shows +48 pp EM under the same overflow scenario. Frontier scaling tests demonstrate that JSON schemas overflow at ~494 tools while compressed schemas remain operational beyond 800 tools. Our results establish tool-schema compression as a necessary infrastructure layer for agentic RAG in constrained-context deployments. All code, data, and checkpoints are publicly available.
Memory-Induced Tool-Drift in LLM Agents
Modern LLM agents combine long-term memory for personalization with tool-calling interfaces for taking actions in the world -- a combination underpinning contemporary production systems. We study a previously unexamined failure of this combination: when personality-driven biases stored in memory (cost-consciousness, impatience, risk tolerance, etc.) silently affect tool calls in contexts where they are not applicable. We call this memory-induced tool-drift and operationalize it through MEMDRIFT, a benchmark of 105 scenarios spanning five bias dimensions and seven professional domains, generated through an automated adversarial pipeline. Across seven frontier models -- including those with extended reasoning -- biased memories raise deflection scores (a judge-scored measure of parameter deviation from unbiased baselines) by up to points on a 1--5 scale. Tool-drift persists when memory management is handled by three production memory architectures. The phenomenon affects real-world tools: scanning 6{,}062 tools across 288 verified MCP servers, we flag 608 with susceptible parameters and confirm tool-drift on a validated subset. Mechanistically, biased memories act as implicit steering vectors, pushing activations along the same latent directions as explicit behavioral instructions. They also redistribute attention from task-relevant context toward memory entries with surface-level keyword overlap to the target parameter. Standard defenses -- prompt-based relevance instructions and memory filters -- reduce drift but do not eliminate it. As agents take increasingly consequential actions on a user's behalf, memory-induced tool-drift represents a systematic vulnerability that current safeguards do not address, motivating dedicated defenses at the intersection of memory management and tool-call generation.
HarnessAPI: A Skill-First Framework for Unified Streaming APIs and MCP Tools
Every Python function deployed as an LLM tool must today exist in two forms: an HTTP endpoint for human-facing clients and CI pipelines, and an MCP tool registration for agent runtimes such as Claude and Cursor. These representations share business logic yet diverge in all the surrounding machinery (routing, validation, serialisation, streaming, and schema maintenance), and they drift apart as the underlying code evolves. We present HarnessAPI, a Python framework that eliminates this duplication by treating a typed skill folder as the single source of truth. From one handler.py plus Pydantic schemas, the framework automatically derives a streaming HTTP endpoint with Server-Sent Events, an interactive OpenAPI/Swagger UI, and a zero-configuration MCP tool, all served from a single process. Dual-mode content negotiation lets the same handler serve SSE-streaming and JSON-returning clients with no handler changes. A dynamic code-generation mechanism ensures Pydantic type annotations propagate correctly to FastMCP's inspection layer, resolving a technical limitation that prevents naive closure-based registration. Measured across six representative skills using cloc, HarnessAPI reduces framework-facing boilerplate by 74% compared with a manually maintained dual-stack implementation (FastAPI server + FastMCP server). HarnessAPI subclasses FastAPI, inheriting its full middleware, dependency-injection, and deployment ecosystem. It is available at https://github.com/edwinjosechittilappilly/harnessapi and on PyPI (pip install harnessapi)
Beyond Text-to-SQL: An Agentic LLM System for Governed Enterprise Analytics APIs
Enterprise analytics aims to make organizational data accessible for decision-making, yet non-technical users still face barriers when using traditional business intelligence tools or Text-to-SQL systems. While recent Text-to-SQL approaches based on Large Language Models (LLMs) promise natural language access to structured data, they fall short in enterprise settings where analytics pipelines rely on governed APIs rather than raw databases. In practice, these APIs encapsulate complex business logic to ensure consistency, auditability, and security. However, delegating mathematical or aggregation logic to an LLM introduces reliability and compliance risks. To this end, we present Analytic Agent, an LLM-based agentic system that translates natural language intents into secure interactions with enterprise analytics APIs. Evaluated on 90 real enterprise use cases constructed by domain experts, it reliably interprets user goals, validates permissions, executes governed queries, and generates compliant visualizations through multi-step reasoning and policy-aware orchestration.