Theory of Mind

What if large language models could not only infer human mindsets but also expose every blind spot in team dialogue such as discrepancies in the team members' joint understanding? We present a novel, two-step framework that leverages large language models (LLMs) both as human-style annotators of team dialogues to track the team's shared mental models (SMMs) and as automated discrepancy detectors among individuals' mental states. In the first step, an LLM generates annotations by identifying SMM elements within task-oriented dialogues from the Cooperative Remote Search Task (CReST) corpus. Then, a secondary LLM compares these LLM-derived annotations and human annotations against gold-standard labels to detect and characterize divergences. We define an SMM coherence evaluation framework for this use case and apply it to six CReST dialogues, ultimately producing: (1) a dataset of human and LLM annotations; (2) a reproducible evaluation framework for SMM coherence; and (3) an empirical assessment of LLM-based discrepancy detection. Our results reveal that, although LLMs exhibit apparent coherence on straightforward natural-language annotation tasks, they systematically err in scenarios requiring spatial reasoning or disambiguation of prosodic cues.

Large Language Models (LLMs) have shown potential in simulating human behaviors and performing theory-of-mind (ToM) reasoning, crucial for complex social interactions. We investigate ToM reasoning's role in aligning agentic behaviors with human norms in negotiation tasks, using the ultimatum game as our referenced task. We initialized LLM agents with different prosocial beliefs (Greedy, Fair, Selfless) and reasoning methods (chain of thought and ToM reasoning of varying levels), examining their decision-making processes and outcomes across multiple LLMs, including reasoning models like o3-mini and DeepSeek-R1 Distilled Qwen 32B. We perform 2,700 simulations to show that ToM reasoning enhances behavioral alignment with human norms, decision-making consistency, and negotiation outcomes. Consistent with prior findings, reasoning LLMs exhibit limited capability compared to ToM-enhanced LLMs, with different game roles benefiting from different ToM orders. Agents almost always chose strategies consistent with their assigned beliefs, and doing so aligned better with human norms in nearly every role, yet Greedy and Selfless agents still fell short of their norms in outcomes. Human verification further revealed that Llama 3.3 70B produces reasoning most consistent with its actions and beliefs. Our findings advance understanding of ToM's role in human-AI interaction and cooperative decision-making. The code used for our experiments can be found at https://github.com/Stealth-py/UltimatumToM.