# Rethinking Label Consistency of In-Context Learning: An Implicit Transductive Label Propagation Perspective

arXiv: https://arxiv.org/abs/2512.12175 · HTML: https://mlsanity.com/paper/2512.12175/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reasoning benchmarks and evaluation, one of 17 directions in LLM reasoning.
- Builds on 27 of its 49 references that are in the map.
- First posted on arXiv 13 Dec 2025.

## Placed in

- LLM reasoning / [Reasoning benchmarks and evaluation](https://mlsanity.com/lr/reasoning-benchmarks-and-evaluation/)

## Builds on (most cited first, 27 of 27)

- [BERT: Pre-training of Deep Bidirectional Transformers for Language Understanding](https://mlsanity.com/paper/1810.04805/) (2018)
- [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)
- [LLaMA: Open and Efficient Foundation Language Models](https://mlsanity.com/paper/2302.13971/) (2023)
- [Llama 2: Open Foundation and Fine-Tuned Chat Models](https://mlsanity.com/paper/2307.09288/) (2023)
- [Sentence-BERT: Sentence Embeddings using Siamese BERT-Networks](https://mlsanity.com/paper/1908.10084/) (2019)
- [SQuAD: 100,000+ Questions for Machine Comprehension of Text](https://mlsanity.com/paper/1606.05250/) (2016)
- [The Power of Scale for Parameter-Efficient Prompt Tuning](https://mlsanity.com/paper/2104.08691/) (2021)
- [A Broad-Coverage Challenge Corpus for Sentence Understanding through Inference](https://mlsanity.com/paper/1704.05426/) (2017)
- [Making Pre-trained Language Models Better Few-shot Learners](https://mlsanity.com/paper/2012.15723/) (2020)
- [What Makes Good In-Context Examples for GPT-3?](https://mlsanity.com/paper/2101.06804/) (2021)
- [An Explanation of In-context Learning as Implicit Bayesian Inference](https://mlsanity.com/paper/2111.02080/) (2021)
- [A Survey on In-context Learning](https://mlsanity.com/paper/2301.00234/) (2022)
- [DeepSeek LLM: Scaling Open-Source Language Models with Longtermism](https://mlsanity.com/paper/2401.02954/) (2024)
- [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)
- [Why Can GPT Learn In-Context? Language Models Implicitly Perform Gradient Descent as Meta-Optimizers](https://mlsanity.com/paper/2212.10559/) (2022)
- [Self-Adaptive In-Context Learning: An Information Compression Perspective for In-Context Example Selection and Ordering](https://mlsanity.com/paper/2212.10375/) (2022)
- [Text Classification via Large Language Models](https://mlsanity.com/paper/2305.08377/) (2023)
- [An Information-theoretic Approach to Prompt Engineering Without Ground Truth Labels](https://mlsanity.com/paper/2203.11364/) (2022)
- [In-context Learning with Retrieved Demonstrations for Language Models: A Survey](https://mlsanity.com/paper/2401.11624/) (2024)
- [Revisiting Demonstration Selection Strategies in In-Context Learning](https://mlsanity.com/paper/2401.12087/) (2024)
- [How Do In-Context Examples Affect Compositional Generalization?](https://mlsanity.com/paper/2305.04835/) (2023)
- [In-Context Learning Learns Label Relationships but Is Not Conventional Learning](https://mlsanity.com/paper/2307.12375/) (2023)
- [Let's Learn Step by Step: Enhancing In-Context Learning Ability with Curriculum Learning](https://mlsanity.com/paper/2402.10738/) (2024)
- [CausalLM is not optimal for in-context learning](https://mlsanity.com/paper/2308.06912/) (2023)

## Abstract (arXiv)

Large language models (LLMs) perform in-context learning (ICL) with minimal supervised examples, which benefits various natural language processing (NLP) tasks. One of the critical research focus is the selection of prompt demonstrations. Current approaches typically employ retrieval models to select the top-K most semantically similar examples as demonstrations. However, we argue that existing methods are limited since the label consistency is not guaranteed during demonstration selection. Our cognition derives from the Bayesian view of ICL and our rethinking of ICL from the transductive label propagation perspective. We treat ICL as a transductive learning method and incorporate latent concepts from Bayesian view and deduce that similar demonstrations guide the concepts of query, with consistent labels serving as estimates. Based on this understanding, we establish a label propagation framework to link label consistency with propagation error bounds. To model label consistency, we propose a data synthesis method, leveraging both semantic and label information, and use TopK sampling with Synthetic Data (TopK-SD) to acquire demonstrations with consistent labels. TopK-SD outperforms original TopK sampling on multiple benchmarks. Our work provides a new perspective for understanding the working mechanisms within ICL.