# Disambiguation-Centric Finetuning Makes Enterprise Tool-Calling LLMs More Realistic and Less Risky

arXiv: https://arxiv.org/abs/2507.03336 · HTML: https://mlsanity.com/paper/2507.03336/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- Placed in Tool learning and function calling, one of 16 directions in LLM agents and tool use.
- Builds on 16 of its 30 references that are in the map.
- First posted on arXiv 4 Jul 2025.

## Placed in

- LLM agents and tool use / [Tool learning and function calling](https://mlsanity.com/agents/tool-learning-and-function-calling/)

## Builds on (most cited first, 16 of 16)

- [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)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [ZeRO: Memory Optimizations Toward Training Trillion Parameter Models](https://mlsanity.com/paper/1910.02054/) (2019)
- [LLMs Get Lost In Multi-Turn Conversation](https://mlsanity.com/paper/2505.06120/) (2025)
- [Scaling Synthetic Data Creation with 1,000,000,000 Personas](https://mlsanity.com/paper/2406.20094/) (2024)
- [MINT: Evaluating LLMs in Multi-turn Interaction with Tools and Language Feedback](https://mlsanity.com/paper/2309.10691/) (2023)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [APIGen: Automated Pipeline for Generating Verifiable and Diverse Function-Calling Datasets](https://mlsanity.com/paper/2406.18518/) (2024)
- [Clarify When Necessary: Resolving Ambiguity Through Interaction with LMs](https://mlsanity.com/paper/2311.09469/) (2023)
- [Instruction Tuning With Loss Over Instructions](https://mlsanity.com/paper/2405.14394/) (2024)
- [LLM Self-Correction with DeCRIM: Decompose, Critique, and Refine for Enhanced Following of Instructions with Multiple Constraints](https://mlsanity.com/paper/2410.06458/) (2024)

## Built on by (most cited first, 2 of 2)

- [MirrorBench: A Benchmark to Evaluate Conversational User-Proxy Agents for Human-Likeness](https://mlsanity.com/paper/2601.08118/) (2026)
- [AgentGym2: Benchmarking Large Language Model Agents in De-Idealized Real-World Environments](https://mlsanity.com/paper/2607.05174/) (2026)

## Abstract (arXiv)

Large language models (LLMs) are increasingly tasked with invoking enterprise APIs, yet they routinely falter when near-duplicate tools vie for the same user intent or when required arguments are left underspecified. We introduce DiaFORGE (Dialogue Framework for Organic Response Generation & Evaluation), a disambiguation-centric, three-stage pipeline that (i) synthesizes persona-driven, multi-turn dialogues in which the assistant must distinguish among highly similar tools, (ii) performs supervised fine-tuning of open-source models with reasoning traces across 3B - 70B parameters, and (iii) evaluates real-world readiness via a dynamic suite that redeploys each model in a live agentic loop and reports end-to-end goal completion alongside conventional static metrics. On our dynamic benchmark DiaBENCH, models trained with DiaFORGE raise tool-invocation success by 27 pp over GPT-4o and by 49 pp over Claude-3.5-Sonnet, both under optimized prompting. To spur further research, we release an open corpus of 5000 production-grade enterprise API specifications paired with rigorously validated, disambiguation-focused dialogues, offering a practical blueprint for building reliable, enterprise-ready tool-calling agents.
