# On Theoretical Interpretations of Concept-Based In-Context Learning

arXiv: https://arxiv.org/abs/2509.20882 · HTML: https://mlsanity.com/paper/2509.20882/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- Builds on 47 of its 52 references that are in the map.
- First posted on arXiv 25 Sep 2025.

## Builds on (most cited first, 30 of 47)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [Measuring Massive Multitask Language Understanding](https://mlsanity.com/paper/2009.03300/) (2020)
- [Scaling Laws for Neural Language Models](https://mlsanity.com/paper/2001.08361/) (2020)
- [DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement Learning](https://mlsanity.com/paper/2501.12948/) (2025)
- [PaLM: Scaling Language Modeling with Pathways](https://mlsanity.com/paper/2204.02311/) (2022)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [GPQA: A Graduate-Level Google-Proof Q&A Benchmark](https://mlsanity.com/paper/2311.12022/) (2023)
- [MMLU-Pro: A More Robust and Challenging Multi-Task Language Understanding Benchmark](https://mlsanity.com/paper/2406.01574/) (2024)
- [Linformer: Self-Attention with Linear Complexity](https://mlsanity.com/paper/2006.04768/) (2020)
- [What Makes Good In-Context Examples for GPT-3?](https://mlsanity.com/paper/2101.06804/) (2021)
- [Fantastically Ordered Prompts and Where to Find Them: Overcoming Few-Shot Prompt Order Sensitivity](https://mlsanity.com/paper/2104.08786/) (2021)
- [An Explanation of In-context Learning as Implicit Bayesian Inference](https://mlsanity.com/paper/2111.02080/) (2021)
- [Mem0: Building Production-Ready AI Agents with Scalable Long-Term Memory](https://mlsanity.com/paper/2504.19413/) (2025)
- [Transformers learn in-context by gradient descent](https://mlsanity.com/paper/2212.07677/) (2022)
- [What Can Transformers Learn In-Context? A Case Study of Simple Function Classes](https://mlsanity.com/paper/2208.01066/) (2022)
- [What learning algorithm is in-context learning? Investigations with linear models](https://mlsanity.com/paper/2211.15661/) (2022)
- [Learning To Retrieve Prompts for In-Context Learning](https://mlsanity.com/paper/2112.08633/) (2021)
- [Efficient Attention: Attention with Linear Complexities](https://mlsanity.com/paper/1812.01243/) (2018)
- [Data Distributional Properties Drive Emergent In-Context Learning in Transformers](https://mlsanity.com/paper/2205.05055/) (2022)
- [The Unlocking Spell on Base LLMs: Rethinking Alignment via In-Context Learning](https://mlsanity.com/paper/2312.01552/) (2023)
- [Black-Box Tuning for Language-Model-as-a-Service](https://mlsanity.com/paper/2201.03514/) (2022)
- [Selective Annotation Makes Language Models Better Few-Shot Learners](https://mlsanity.com/paper/2209.01975/) (2022)
- [Label Words are Anchors: An Information Flow Perspective for Understanding In-Context Learning](https://mlsanity.com/paper/2305.14160/) (2023)
- [Transformers as Algorithms: Generalization and Stability in In-context Learning](https://mlsanity.com/paper/2301.07067/) (2023)
- [What Algorithms can Transformers Learn? A Study in Length Generalization](https://mlsanity.com/paper/2310.16028/) (2023)
- [Active Example Selection for In-Context Learning](https://mlsanity.com/paper/2211.04486/) (2022)

## Built on by (most cited first, 3 of 3)

- [Bifrost: Steering Strategic Trajectories to Bridge Contextual Gaps for Self-Improving Agents](https://mlsanity.com/paper/2602.05810/) (2026)
- [A Theoretical Interpretation of In-Context Learning via Probabilistic Modeling](https://mlsanity.com/paper/2606.28926/) (2026)
- [CB-Agent: Concept-Based In-Context Learning for Sequential Action Selection](https://mlsanity.com/paper/2610.14574/) (2026)

## Abstract (arXiv)

In-Context Learning (ICL) has emerged as an important new paradigm in natural language processing and large language model (LLM) applications. However, the theoretical understanding of the ICL mechanism remains limited. This paper aims to investigate this issue by studying a particular ICL approach, called concept-based ICL (CB-ICL). In particular, we propose theoretical analyses on applying CB-ICL to ICL tasks, which explains why and when the CB-ICL performs well for predicting query labels in prompts with only a few demonstrations. In addition, the proposed theory quantifies the knowledge that can be leveraged by the LLMs to the prompt tasks, and leads to a similarity measure between the prompt demonstrations and the query input, which provides important insights and guidance for model pre-training and prompt engineering in ICL. Moreover, the impact of the prompt demonstration size and the dimension of the LLM embeddings in ICL are also explored based on the proposed theory. Finally, several real-data experiments are conducted to validate the practical usefulness of CB-ICL and the corresponding theory.