# Can a Single Model Master Both Multi-turn Conversations and Tool Use? CoALM: A Unified Conversational Agentic Language Model

arXiv: https://arxiv.org/abs/2502.08820 · HTML: https://mlsanity.com/paper/2502.08820/

## Key facts

- Cited by 20 papers in the map (data through 14 Oct 2026).
- Placed in General LLM agent frameworks and benchmarks, one of 16 directions in LLM agents and tool use.
- Builds on 23 of its 41 references that are in the map.
- First posted on arXiv 12 Feb 2025.

## Placed in

- LLM agents and tool use / [General LLM agent frameworks and benchmarks](https://mlsanity.com/agents/general-llm-agent-frameworks-and-benchmarks/)

## Builds on (most cited first, 23 of 23)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Exploring the Limits of Transfer Learning with a Unified Text-to-Text Transformer](https://mlsanity.com/paper/1910.10683/) (2019)
- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [QLoRA: Efficient Finetuning of Quantized LLMs](https://mlsanity.com/paper/2305.14314/) (2023)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [The Flan Collection: Designing Data and Methods for Effective Instruction Tuning](https://mlsanity.com/paper/2301.13688/) (2023)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [Towards Scalable Multi-domain Conversational Agents: The Schema-Guided Dialogue Dataset](https://mlsanity.com/paper/1909.05855/) (2019)
- [Snips Voice Platform: an embedded Spoken Language Understanding system for private-by-design voice interfaces](https://mlsanity.com/paper/1805.10190/) (2018)
- [ToolACE: Winning the Points of LLM Function Calling](https://mlsanity.com/paper/2409.00920/) (2024)
- [Multi-Task Pre-Training for Plug-and-Play Task-Oriented Dialogue System](https://mlsanity.com/paper/2109.14739/) (2021)
- [MultiWOZ 2.4: A Multi-Domain Task-Oriented Dialogue Dataset with Essential Annotation Corrections to Improve State Tracking Evaluation](https://mlsanity.com/paper/2104.00773/) (2021)
- [Hammer: Robust Function-Calling for On-Device Language Models via Function Masking](https://mlsanity.com/paper/2410.04587/) (2024)
- [Granite-Function Calling Model: Introducing Function Calling Abilities via Multi-task Learning of Granular Tasks](https://mlsanity.com/paper/2407.00121/) (2024)
- [SGP-TOD: Building Task Bots Effortlessly via Schema-Guided LLM Prompting](https://mlsanity.com/paper/2305.09067/) (2023)
- [Large Language Models as Zero-shot Dialogue State Tracker through Function Calling](https://mlsanity.com/paper/2402.10466/) (2024)
- [Unsupervised End-to-End Task-Oriented Dialogue with LLMs: The Power of the Noisy Channel](https://mlsanity.com/paper/2404.15219/) (2024)

## Built on by (most cited first, 20 of 20)

- [ToolRL: Reward is All Tool Learning Needs](https://mlsanity.com/paper/2504.13958/) (2025)
- [A Survey of Context Engineering for Large Language Models](https://mlsanity.com/paper/2507.13334/) (2025)
- [Tool-R0: Self-Evolving LLM Agents for Tool-Learning from Zero Data](https://mlsanity.com/paper/2602.21320/) (2026)
- [MUA-RL: Multi-turn User-interacting Agent Reinforcement Learning for agentic tool use](https://mlsanity.com/paper/2508.18669/) (2025)
- [Self-Improving LLM Agents at Test-Time](https://mlsanity.com/paper/2510.07841/) (2025)
- [AgentRM: Enhancing Agent Generalization with Reward Modeling](https://mlsanity.com/paper/2502.18407/) (2025)
- [ToolScope: Enhancing LLM Agent Tool Use through Tool Merging and Context-Aware Filtering](https://mlsanity.com/paper/2510.20036/) (2025)
- [Lost in Execution: On the Multilingual Robustness of Tool Calling in Large Language Models](https://mlsanity.com/paper/2601.05366/) (2026)
- [A Desideratum for Conversational Agents: Capabilities, Challenges, and Future Directions](https://mlsanity.com/paper/2504.16939/) (2025)
- [From Failure to Mastery: Generating Hard Samples for Tool-use Agents](https://mlsanity.com/paper/2601.01498/) (2026)
- [DICE-BENCH: Evaluating the Tool-Use Capabilities of Large Language Models in Multi-Round, Multi-Party Dialogues](https://mlsanity.com/paper/2506.22853/) (2025)
- [PARL-MT: Learning to Call Functions in Multi-Turn Conversation with Progress Awareness](https://mlsanity.com/paper/2509.23206/) (2025)
- [Souper-Model: How Simple Arithmetic Unlocks State-of-the-Art LLM Performance](https://mlsanity.com/paper/2511.13254/) (2025)
- [PA3: Policy-Aware Agent Alignment through Chain-of-Thought](https://mlsanity.com/paper/2603.14602/) (2026)
- [Goal-Oriented Reasoning for RAG-based Memory in Conversational Agentic LLM Systems](https://mlsanity.com/paper/2605.12213/) (2026)
- [Beyond Fast and Slow: Cognitive-Inspired Elastic Reasoning for Large Language Models](https://mlsanity.com/paper/2512.15089/) (2025)
- [Reasoning Gets Harder for LLMs Inside A Dialogue](https://mlsanity.com/paper/2603.20133/) (2026)
- [MAC: A Multi-Agent Framework for Interactive User Clarification in Multi-turn Conversations](https://mlsanity.com/paper/2512.13154/) (2025)
- [Capability-Aligned Hierarchical Learning for Tool-Augmented LLMs](https://mlsanity.com/paper/2606.09371/) (2026)
- [Unified Agent: Managing Interactions across Devices](https://mlsanity.com/paper/2608.05729/) (2026)

## Abstract (arXiv)

Large Language Models (LLMs) with API-calling capabilities enabled building effective Language Agents (LA), while also revolutionizing the conventional task-oriented dialogue (TOD) paradigm. However, current approaches face a critical dilemma: TOD systems are often trained on a limited set of target APIs, requiring new data to maintain their quality when interfacing with new services, while LAs are not trained to maintain user intent over multi-turn conversations. Because both robust multi-turn management and advanced function calling are crucial for effective conversational agents, we evaluate these skills on three popular benchmarks: MultiWOZ 2.4 (TOD), BFCL V3 (LA), and API-Bank (LA), and our analyses reveal that specialized approaches excel in one domain but underperform in the other. To bridge this chasm, we introduce CoALM (Conversational Agentic Language Model), a unified approach that integrates both conversational and agentic capabilities. We created CoALM-IT, a carefully constructed multi-task dataset that interleave multi-turn ReAct reasoning with complex API usage. Using CoALM-IT, we train three models CoALM 8B, CoALM 70B, and CoALM 405B, which outperform top domain-specific models, including GPT-4o, across all three benchmarks. This demonstrates the feasibility of a single model approach for both TOD and LA, setting a new standard for conversational agents.