# EVOLvE: Evaluating and Optimizing LLMs For In-Context Exploration

arXiv: https://arxiv.org/abs/2410.06238 · HTML: https://mlsanity.com/paper/2410.06238/

## Key facts

- Cited by 34 papers in the map (data through 14 Oct 2026).
- Placed in Reinforcement learning for reasoning, one of 17 directions in LLM reasoning.
- Builds on 34 of its 63 references that are in the map.
- First posted on arXiv 8 Oct 2024.

## Placed in

- LLM reasoning / [Reinforcement learning for reasoning](https://mlsanity.com/lr/reinforcement-learning-for-reasoning/)

## Builds on (most cited first, 30 of 34)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Playing Atari with Deep Reinforcement Learning](https://mlsanity.com/paper/1312.5602/) (2013)
- [Gemini 1.5: Unlocking multimodal understanding across millions of tokens of context](https://mlsanity.com/paper/2403.05530/) (2024)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [Gemma 2: Improving Open Language Models at a Practical Size](https://mlsanity.com/paper/2408.00118/) (2024)
- [Scaling LLM Test-Time Compute Optimally can be More Effective than Scaling Model Parameters](https://mlsanity.com/paper/2408.03314/) (2024)
- [Large Language Models Encode Clinical Knowledge](https://mlsanity.com/paper/2212.13138/) (2022)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [Large Language Models as Optimizers](https://mlsanity.com/paper/2309.03409/) (2023)
- [Introduction to Multi-Armed Bandits](https://mlsanity.com/paper/1904.07272/) (2019)
- [Describe, Explain, Plan and Select: Interactive Planning with Large Language Models Enables Open-World Multi-Task Agents](https://mlsanity.com/paper/2302.01560/) (2023)
- [Transformers as Statisticians: Provable In-Context Learning with In-Context Algorithm Selection](https://mlsanity.com/paper/2306.04637/) (2023)
- [(More) Efficient Reinforcement Learning via Posterior Sampling](https://mlsanity.com/paper/1306.0940/) (2013)
- [Large Language Models as General Pattern Machines](https://mlsanity.com/paper/2307.04721/) (2023)
- [In-context Reinforcement Learning with Algorithm Distillation](https://mlsanity.com/paper/2210.14215/) (2022)
- [Distilling System 2 into System 1](https://mlsanity.com/paper/2407.06023/) (2024)
- [Symbolic Chain-of-Thought Distillation: Small Models Can Also "Think" Step-by-Step](https://mlsanity.com/paper/2306.14050/) (2023)
- [Stream of Search (SoS): Learning to Search in Language](https://mlsanity.com/paper/2404.03683/) (2024)
- [Supervised Pretraining Can Learn In-Context Reinforcement Learning](https://mlsanity.com/paper/2306.14892/) (2023)
- [Controlled Decoding from Language Models](https://mlsanity.com/paper/2310.17022/) (2023)
- [NATURAL PLAN: Benchmarking LLMs on Natural Language Planning](https://mlsanity.com/paper/2406.04520/) (2024)
- [SCOTT: Self-Consistent Chain-of-Thought Distillation](https://mlsanity.com/paper/2305.01879/) (2023)
- [Transformers as Decision Makers: Provable In-Context Reinforcement Learning via Supervised Pretraining](https://mlsanity.com/paper/2310.08566/) (2023)
- [Can large language models explore in-context?](https://mlsanity.com/paper/2403.15371/) (2024)
- [Large Language Models for Generative Recommendation: A Survey and Visionary Discussions](https://mlsanity.com/paper/2309.01157/) (2023)
- [Generalization to New Sequential Decision Making Tasks with In-Context Learning](https://mlsanity.com/paper/2312.03801/) (2023)
- [Large Language Models can Implement Policy Iteration](https://mlsanity.com/paper/2210.03821/) (2022)
- [Controlling Large Language Model Agents with Entropic Activation Steering](https://mlsanity.com/paper/2406.00244/) (2024)
- [Inference-Time Language Model Alignment via Integrated Value Guidance](https://mlsanity.com/paper/2409.17819/) (2024)

## Built on by (most cited first, 30 of 34)

- [Towards Reasoning Era: A Survey of Long Chain-of-Thought for Reasoning Large Language Models](https://mlsanity.com/paper/2503.09567/) (2025)
- [Advances and Challenges in Foundation Agents: From Brain-Inspired Intelligence to Evolutionary, Collaborative, and Safe Systems](https://mlsanity.com/paper/2504.01990/) (2025)
- [Optimizing Test-Time Compute via Meta Reinforcement Fine-Tuning](https://mlsanity.com/paper/2503.07572/) (2025)
- [Towards System 2 Reasoning in LLMs: Learning How to Think With Meta Chain-of-Thought](https://mlsanity.com/paper/2501.04682/) (2025)
- [Scaling Test-Time Compute Without Verification or RL is Suboptimal](https://mlsanity.com/paper/2502.12118/) (2025)
- [e3: Learning to Explore Enables Extrapolation of Test-Time Compute for LLMs](https://mlsanity.com/paper/2506.09026/) (2025)
- [LLMs are Greedy Agents: Effects of RL Fine-tuning on Decision-Making Abilities](https://mlsanity.com/paper/2504.16078/) (2025)
- [Reward Is Enough: LLMs Are In-Context Reinforcement Learners](https://mlsanity.com/paper/2506.06303/) (2025)
- [Meta-RL Induces Exploration in Language Agents](https://mlsanity.com/paper/2512.16848/) (2025)
- [BoxingGym: Benchmarking Progress in Automated Experimental Design and Model Discovery](https://mlsanity.com/paper/2501.01540/) (2025)
- [Toward Efficient Exploration by Large Language Model Agents](https://mlsanity.com/paper/2504.20997/) (2025)
- [Formalizing Learning from Language Feedback with Provable Guarantees](https://mlsanity.com/paper/2506.10341/) (2025)
- [Multi-Turn Puzzles: Evaluating Interactive Reasoning and Strategic Dialogue in LLMs](https://mlsanity.com/paper/2508.10142/) (2025)
- [The Illusion of Stochasticity in LLMs](https://mlsanity.com/paper/2604.06543/) (2026)
- [Should You Use Your Large Language Model to Explore or Exploit?](https://mlsanity.com/paper/2502.00225/) (2025)
- [Large Language Models Think Too Fast To Explore Effectively](https://mlsanity.com/paper/2501.18009/) (2025)
- [Large Language Model-Enhanced Multi-Armed Bandits](https://mlsanity.com/paper/2502.01118/) (2025)
- [CaRT: Teaching LLM Agents to Know When They Know Enough](https://mlsanity.com/paper/2510.08517/) (2025)
- [MADE: Benchmark Environments for Closed-Loop Materials Discovery](https://mlsanity.com/paper/2601.20996/) (2026)
- [Scaling In-Context Online Learning Capability of LLMs via Cross-Episode Meta-RL](https://mlsanity.com/paper/2602.04089/) (2026)
- [LLM-First Search: Self-Guided Exploration of the Solution Space](https://mlsanity.com/paper/2506.05213/) (2025)
- [Behavioral Exploration: Learning to Explore via In-Context Adaptation](https://mlsanity.com/paper/2507.09041/) (2025)
- [Comparing Exploration-Exploitation Strategies of LLMs and Humans: Insights from Standard Multi-armed Bandit Experiments](https://mlsanity.com/paper/2505.09901/) (2025)
- [PACEvolve++: Improving Test-time Learning for Evolutionary Search Agents](https://mlsanity.com/paper/2605.07039/) (2026)
- [When Greedy Wins: Emergent Exploitation Bias in Meta-Bandit LLM Training](https://mlsanity.com/paper/2509.24923/) (2025)
- [ReEfBench: Quantifying the Reasoning Efficiency of LLMs](https://mlsanity.com/paper/2601.03550/) (2026)
- [Improving the Data-efficiency of Reinforcement Learning by Warm-starting with LLM](https://mlsanity.com/paper/2505.10861/) (2025)
- [Reasoning aligns language models to human cognition](https://mlsanity.com/paper/2602.08693/) (2026)
- [LatentGym: A Testbed For Cross-Task Experiential Learning With Controllable Latent Structure](https://mlsanity.com/paper/2606.15306/) (2026)
- [Disentangling Exploration of Large Language Models by Optimal Exploitation](https://mlsanity.com/paper/2501.08925/) (2025)

## Abstract (arXiv)

Despite their success in many domains, large language models (LLMs) remain under-studied in scenarios requiring optimal decision-making under uncertainty. This is crucial as many real-world applications, ranging from personalized recommendations to healthcare interventions, demand that LLMs not only predict but also actively learn to make optimal decisions through exploration. In this work, we measure LLMs' (in)ability to make optimal decisions in bandits, a state-less reinforcement learning setting relevant to many applications. We develop a comprehensive suite of environments, including both context-free and contextual bandits with varying task difficulties, to benchmark LLMs' performance. Motivated by the existence of optimal exploration algorithms, we propose efficient ways to integrate this algorithmic knowledge into LLMs: by providing explicit algorithm-guided support during inference; and through algorithm distillation via in-context demonstrations and fine-tuning, using synthetic data generated from these algorithms. Impressively, these techniques allow us to achieve superior exploration performance with smaller models, surpassing larger models on various tasks. We conducted an extensive ablation study to shed light on various factors, such as task difficulty and data representation, that influence the efficiency of LLM exploration. Additionally, we conduct a rigorous analysis of the LLM's exploration efficiency using the concept of regret, linking its ability to explore to the model size and underlying algorithm.
