# Simulating Complex Multi-Turn Tool Calling Interactions in Stateless Execution Environments

arXiv: https://arxiv.org/abs/2601.19914 · HTML: https://mlsanity.com/paper/2601.19914/

## 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 44 of its 52 references that are in the map.
- First posted on arXiv 6 Jan 2026.

## 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, 30 of 44)

- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [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)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [GPT-4o System Card](https://mlsanity.com/paper/2410.21276/) (2024)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Gemini 1.5: Unlocking multimodal understanding across millions of tokens of context](https://mlsanity.com/paper/2403.05530/) (2024)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [WebGPT: Browser-assisted question-answering with human feedback](https://mlsanity.com/paper/2112.09332/) (2021)
- [LlamaFactory: Unified Efficient Fine-Tuning of 100+ Language Models](https://mlsanity.com/paper/2403.13372/) (2024)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [gpt-oss-120b & gpt-oss-20b Model Card](https://mlsanity.com/paper/2508.10925/) (2025)
- [OSWorld: Benchmarking Multimodal Agents for Open-Ended Tasks in Real Computer Environments](https://mlsanity.com/paper/2404.07972/) (2024)
- [FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performance](https://mlsanity.com/paper/2305.05176/) (2023)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [Identifying the Risks of LM Agents with an LM-Emulated Sandbox](https://mlsanity.com/paper/2309.15817/) (2023)
- [GLM-4.5: Agentic, Reasoning, and Coding (ARC) Foundation Models](https://mlsanity.com/paper/2508.06471/) (2025)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [Small Language Models are the Future of Agentic AI](https://mlsanity.com/paper/2506.02153/) (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)
- [StableToolBench: Towards Stable Large-Scale Benchmarking on Tool Learning of Large Language Models](https://mlsanity.com/paper/2403.07714/) (2024)
- [A Note on Shumailov et al. (2024): `AI Models Collapse When Trained on Recursively Generated Data'](https://mlsanity.com/paper/2410.12954/) (2024)
- [xLAM: A Family of Large Action Models to Empower AI Agent Systems](https://mlsanity.com/paper/2409.03215/) (2024)
- [Thinking about GPT-3 In-Context Learning for Biomedical IE? Think Again](https://mlsanity.com/paper/2203.08410/) (2022)
- [Data-Copilot: Bridging Billions of Data and Humans with Autonomous Workflow](https://mlsanity.com/paper/2306.07209/) (2023)
- [ACEBench: Who Wins the Match Point in Tool Usage?](https://mlsanity.com/paper/2501.12851/) (2025)
- [TOUCAN: Synthesizing 1.5M Tool-Agentic Data from Real-World MCP Environments](https://mlsanity.com/paper/2510.01179/) (2025)

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

- [What Makes Good Agentic Data? An ACE Lens on Data Generation for LLM Agents](https://mlsanity.com/paper/2608.27260/) (2026)
- [Synthesize and Reward -- Reinforcement Learning for Multi-Step Tool Use in Live Environments](https://mlsanity.com/paper/2606.03892/) (2026)
- [Agent Seer: Synthesizing Scenarios from Specification Understanding](https://mlsanity.com/paper/2608.26133/) (2026)

## Abstract (arXiv)

Synthetic data has proven itself to be a valuable resource for tuning smaller, cost-effective language models to handle the complexities of multi-turn tool calling conversations. While many frameworks and systems for producing synthetic multi-turn tool calling data have been proposed, prior works have frequently assumed that any tool calling interactions will take place in an execution environment that maintains state. When such an environment is available, this is advantageous as it allows for the validity of an interaction to be determined by whether or not the state of the execution environment matches to some prespecified objective. Unfortunately, this does not hold in many real-world tool use settings, e.g., in enterprise settings where data security is of the utmost importance or in cases where tool specifications are synthesized from multiple sources. In this work, we address this gap by introducing a data generation method, DiGiT-TC, that is designed to produce tool calling conversations that have the characteristics of conversations generated through search in a stateful environment. The key to our technique lies in a novel generation pattern that allows our approach to implicitly represent certain tool calls in the user request. We validate our approach on standard tool calling benchmarks and demonstrate that, even in stateful problem settings, our approach results in strong performance gains.