# Verification-Guided Context Optimization for Tool Calling via Hierarchical LLMs-as-Editors

arXiv: https://arxiv.org/abs/2512.13860 · HTML: https://mlsanity.com/paper/2512.13860/

## Key facts

- Cited by 3 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 21 of its 30 references that are in the map.
- First posted on arXiv 15 Dec 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, 21 of 21)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Large Language Models Are Human-Level Prompt Engineers](https://mlsanity.com/paper/2211.01910/) (2022)
- [AlphaEvolve: A coding agent for scientific and algorithmic discovery](https://mlsanity.com/paper/2506.13131/) (2025)
- [DSPy: Compiling Declarative Language Model Calls into Self-Improving Pipelines](https://mlsanity.com/paper/2310.03714/) (2023)
- [Promptbreeder: Self-Referential Self-Improvement Via Prompt Evolution](https://mlsanity.com/paper/2309.16797/) (2023)
- [ToolRL: Reward is All Tool Learning Needs](https://mlsanity.com/paper/2504.13958/) (2025)
- [ToolACE: Winning the Points of LLM Function Calling](https://mlsanity.com/paper/2409.00920/) (2024)
- [APIGen: Automated Pipeline for Generating Verifiable and Diverse Function-Calling Datasets](https://mlsanity.com/paper/2406.18518/) (2024)
- [APIGen-MT: Agentic Pipeline for Multi-Turn Data Generation via Simulated Agent-Human Interplay](https://mlsanity.com/paper/2504.03601/) (2025)
- [EASYTOOL: Enhancing LLM-based Agents with Concise Tool Instruction](https://mlsanity.com/paper/2401.06201/) (2024)
- [A Survey of Context Engineering for Large Language Models](https://mlsanity.com/paper/2507.13334/) (2025)
- [AnyTool: Self-Reflective, Hierarchical Agents for Large-Scale API Calls](https://mlsanity.com/paper/2402.04253/) (2024)
- [xLAM: A Family of Large Action Models to Empower AI Agent Systems](https://mlsanity.com/paper/2409.03215/) (2024)
- [Confucius: Iterative Tool Learning from Introspection Feedback by Easy-to-Difficult Curriculum](https://mlsanity.com/paper/2308.14034/) (2023)
- [Learning to Use Tools via Cooperative and Interactive Agents](https://mlsanity.com/paper/2403.03031/) (2024)
- [What Are Tools Anyway? A Survey from the Language Model Perspective](https://mlsanity.com/paper/2403.15452/) (2024)
- [From Exploration to Mastery: Enabling LLMs to Master Tools via Self-Driven Interactions](https://mlsanity.com/paper/2410.08197/) (2024)
- [Symbolic Prompt Program Search: A Structure-Aware Approach to Efficient Compile-Time Prompt Optimization](https://mlsanity.com/paper/2404.02319/) (2024)
- [Advancing Tool-Augmented Large Language Models via Meta-Verification and Reflection Learning](https://mlsanity.com/paper/2506.04625/) (2025)

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

- [CollabEval: Enhancing LLM-as-a-Judge via Multi-Agent Collaboration](https://mlsanity.com/paper/2603.00993/) (2026)
- [DOCSCHISEL: Adaptive Tool Documentation Optimization Framework for LLM Agents](https://mlsanity.com/paper/2608.10037/) (2026)
- [JudgePanel: A Compact Judge with Panel Deliberation via Adaptive Multi-Reward Reinforcement Learning](https://mlsanity.com/paper/2608.29168/) (2026)

## Abstract (arXiv)

Tool calling enables large language models (LLMs) to interact with external environments through tool invocation, providing a practical way to overcome the limitations of pretraining. However, the effectiveness of tool use depends heavily on the quality of the associated documentation and knowledge base context. These materials are usually written for human users and are often misaligned with how LLMs interpret information. This problem is even more pronounced in industrial settings, where hundreds of tools with overlapping functionality create challenges in scalability, variability, and ambiguity. We propose Verification-Guided Context Optimization (VGCO), a framework that uses LLMs as editors to automatically refine tool-related documentation and knowledge base context. VGCO works in two stages. First, Evaluation collects real-world failure cases and identifies mismatches between tools and their context. Second, Optimization performs hierarchical editing through offline learning with structure-aware, in-context optimization. The novelty of our LLM editors has three main aspects. First, they use a hierarchical structure that naturally integrates into the tool-calling workflow. Second, they are state-aware, action-specific, and verification-guided, which constrains the search space and enables efficient, targeted improvements. Third, they enable cost-efficient sub-task specialization, either by prompt engineering large editor models or by post-training smaller editor models. Unlike prior work that emphasizes multi-turn reasoning, VGCO focuses on the single-turn, large-scale tool-calling problem and achieves significant improvements in accuracy, robustness, and generalization across LLMs.