# Dynamic Strategy Adaptation in Multi-Agent Environments with Large Language Models

arXiv: https://arxiv.org/abs/2507.02002 · HTML: https://mlsanity.com/paper/2507.02002/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning.
- Builds on 15 of its 36 references that are in the map.
- First posted on arXiv 1 Jul 2025.

## Placed in

- LLM reasoning / [Reasoning for agents, planning and code](https://mlsanity.com/lr/reasoning-for-agents-planning-and-code/)
- LLM agents and tool use / [Reinforcement learning for LLM agents](https://mlsanity.com/agents/reinforcement-learning-for-llm-agents/)

## Builds on (most cited first, 15 of 15)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [PaLM-E: An Embodied Multimodal Language Model](https://mlsanity.com/paper/2303.03378/) (2023)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [MetaGPT: Meta Programming for A Multi-Agent Collaborative Framework](https://mlsanity.com/paper/2308.00352/) (2023)
- [Learning to Communicate with Deep Multi-Agent Reinforcement Learning](https://mlsanity.com/paper/1605.06676/) (2016)
- [Deal or No Deal? End-to-End Learning for Negotiation Dialogues](https://mlsanity.com/paper/1706.05125/) (2017)
- [Multi-Agent Cooperation and the Emergence of (Natural) Language](https://mlsanity.com/paper/1612.07182/) (2016)
- [How Well Can LLMs Negotiate? NegotiationArena Platform and Analysis](https://mlsanity.com/paper/2402.05863/) (2024)
- [Can Large Language Models Serve as Rational Players in Game Theory? A Systematic Analysis](https://mlsanity.com/paper/2312.05488/) (2023)
- [Large Language Models Play StarCraft II: Benchmarks and A Chain of Summarization Approach](https://mlsanity.com/paper/2312.11865/) (2023)
- [MAgent: A Many-Agent Reinforcement Learning Platform for Artificial Collective Intelligence](https://mlsanity.com/paper/1712.00600/) (2017)
- [Game-theoretic LLM: Agent Workflow for Negotiation Games](https://mlsanity.com/paper/2411.05990/) (2024)

## Abstract (arXiv)

Large language models (LLMs) demonstrate strong reasoning abilities across mathematical, strategic, and linguistic tasks, yet little is known about how well they reason in dynamic, real-time, multi-agent scenarios, such as collaborative environments in which agents continuously adapt to each other's behavior, as in cooperative gameplay settings. In this paper, we bridge this gap by combining LLM-driven agents with strategic reasoning and real-time adaptation in cooperative, multi-agent environments grounded in game-theoretic principles such as belief consistency and Nash equilibrium. The proposed framework applies broadly to dynamic scenarios in which agents coordinate, communicate, and make decisions in response to continuously changing conditions. We provide real-time strategy refinement and adaptive feedback mechanisms that enable agents to dynamically adjust policies based on immediate contextual interactions, in contrast to previous efforts that evaluate LLM capabilities in static or turn-based settings. Empirical results show that our method achieves up to a 26% improvement in return over PPO baselines in high-noise environments, while maintaining real-time latency under 1.05 milliseconds. Our approach improves collaboration efficiency, task completion rates, and flexibility, illustrating that game-theoretic guidance integrated with real-time feedback enhances LLM performance, ultimately fostering more resilient and flexible strategic multi-agent systems.