The Tool-Overuse Illusion: Why Does LLM Prefer External Tools over Internal Knowledge?
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Abstract (arXiv)
Equipping LLMs with external tools effectively addresses internal reasoning limitations. However, it introduces a critical yet under-explored phenomenon: tool overuse, the unnecessary tool-use during reasoning. In this paper, we first reveal this phenomenon is pervasive across diverse LLMs. We then experimentally elucidate its underlying mechanisms through two key lenses: (1) First, by analyzing tool-use behavior across different internal knowledge availability regions, we identify a textitknowledge epistemic illusion: models misjudge internal knowledge boundaries and fail to accurately perceive their actual knowledge availability. To mitigate this, we propose a knowledge-aware epistemic boundary alignment strategy based on direct preference optimization, which reduces tool usage in by 82.8% while yielding an accuracy improvement. (2) Second, we establish a causal link between reward structures and tool-use behavior by visualizing the tool-augmented training process. It reveals that textitoutcome-only rewards inadvertently encourage tool overuse by rewarding only final correctness, regardless of tool efficiency. To verify this, we balance reward signals during training rather than relying on outcome-only rewards, cutting unnecessary tool calls by 66.7% (7B) and 60.7% (32B) without sacrificing accuracy. Finally, we provide theoretical justification in this two lenses to understand tool overuse.
Key facts. Cited by 6 papers in the map (data through 14 Oct 2026). Builds on 28 of its 35 references that are in the map. First posted on arXiv 3 Mar 2026.
Builds on
28 of 35 references.
References · 28
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- 2025ReTool: Reinforcement Learning for Strategic Tool Use in LLMscited by 392
16 more
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Built on by
Citing papers per year: 2026: 6.
6 papers.
- 2026When Top-K Misses the Decision: Tool-Call Drift in Multi-Teacher On-Policy Distillationcited by 4
- 2026From Knowing to Acting: Benchmarking Self-Awareness Capability of LLM Agentscited by 2
- 2026MemToC: Benchmarking Memory-Tool Conflict Resolution in Large Language Modelscited by 1
- 2026Paying to Know: Micro-Transaction Markets for Verified Product Information in Agentic E-Commercecited by 0
- 2026When Tools Get in the Way: The Effect of Unnecessary Tool Availability on LLM Answeringcited by 0
- 2026OverAct: Measuring and Mitigating Proactive Over-Authorization in LLM Tool-Calling Agentscited by 0
- 2026OverAct: Measuring and Mitigating Proactive Over-Authorization in LLM Tool-Calling Agents1 Oct 2026
- 2026When Tools Get in the Way: The Effect of Unnecessary Tool Availability on LLM Answering12 Sep 2026
- 2026MemToC: Benchmarking Memory-Tool Conflict Resolution in Large Language Models26 Aug 2026
- 2026When Top-K Misses the Decision: Tool-Call Drift in Multi-Teacher On-Policy Distillation8 Jul 2026
- 2026Paying to Know: Micro-Transaction Markets for Verified Product Information in Agentic E-Commerce23 Jun 2026
- 2026From Knowing to Acting: Benchmarking Self-Awareness Capability of LLM Agents9 Jun 2026
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- 2025The Reasoning Trap: How Enhancing LLM Reasoning Amplifies Tool Hallucination
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