# ParaTool: Shifting Tool Representations from Context to Parameters

arXiv: https://arxiv.org/abs/2605.29561 · HTML: https://mlsanity.com/paper/2605.29561/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Tool learning and function calling, one of 16 directions in LLM agents and tool use.
- Builds on 33 of its 40 references that are in the map.
- First posted on arXiv 28 May 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 33)

- [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)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Parameter-Efficient Transfer Learning for NLP](https://mlsanity.com/paper/1902.00751/) (2019)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Prefix-Tuning: Optimizing Continuous Prompts for Generation](https://mlsanity.com/paper/2101.00190/) (2021)
- [Sparks of Artificial General Intelligence: Early experiments with GPT-4](https://mlsanity.com/paper/2303.12712/) (2023)
- [Emergent Abilities of Large Language Models](https://mlsanity.com/paper/2206.07682/) (2022)
- [Qwen2 Technical Report](https://mlsanity.com/paper/2407.10671/) (2024)
- [AutoGen: Enabling Next-Gen LLM Applications via Multi-Agent Conversation](https://mlsanity.com/paper/2308.08155/) (2023)
- [ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs](https://mlsanity.com/paper/2307.16789/) (2023)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [Cognitive Architectures for Language Agents](https://mlsanity.com/paper/2309.02427/) (2023)
- [Augmented Language Models: a Survey](https://mlsanity.com/paper/2302.07842/) (2023)
- [Tool Learning with Foundation Models](https://mlsanity.com/paper/2304.08354/) (2023)
- [GPT4Tools: Teaching Large Language Model to Use Tools via Self-instruction](https://mlsanity.com/paper/2305.18752/) (2023)
- [HuatuoGPT, towards Taming Language Model to Be a Doctor](https://mlsanity.com/paper/2305.15075/) (2023)
- [ART: Automatic multi-step reasoning and tool-use for large language models](https://mlsanity.com/paper/2303.09014/) (2023)
- [Scaling Down to Scale Up: A Guide to Parameter-Efficient Fine-Tuning](https://mlsanity.com/paper/2303.15647/) (2023)
- [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)
- [Platypus: Quick, Cheap, and Powerful Refinement of LLMs](https://mlsanity.com/paper/2308.07317/) (2023)
- [AnyTool: Self-Reflective, Hierarchical Agents for Large-Scale API Calls](https://mlsanity.com/paper/2402.04253/) (2024)
- [MACER: Attack-free and Scalable Robust Training via Maximizing Certified Radius](https://mlsanity.com/paper/2001.02378/) (2020)
- [xLAM: A Family of Large Action Models to Empower AI Agent Systems](https://mlsanity.com/paper/2409.03215/) (2024)
- [Goat: Fine-tuned LLaMA Outperforms GPT-4 on Arithmetic Tasks](https://mlsanity.com/paper/2305.14201/) (2023)
- [Tool Documentation Enables Zero-Shot Tool-Usage with Large Language Models](https://mlsanity.com/paper/2308.00675/) (2023)
- [Learning to Use Tools via Cooperative and Interactive Agents](https://mlsanity.com/paper/2403.03031/) (2024)
- [Re-Invoke: Tool Invocation Rewriting for Zero-Shot Tool Retrieval](https://mlsanity.com/paper/2408.01875/) (2024)
- [Parametric Retrieval Augmented Generation](https://mlsanity.com/paper/2501.15915/) (2025)

## Abstract (arXiv)

Tool calling extends large language models (LLMs) by enabling grounded interaction with external executable interfaces, thereby supporting environment-coupled problem solving. However, mainstream in-context learning (ICL) approaches typically incorporate detailed tool documentation and usage examples directly into the context. This results in substantial inference overhead and heightened risks of hallucination as the context length grows. Conversely, while tuning-based methods improve general tool-calling capabilities, they often fail to effectively internalize the specific details of previously seen tools, thereby retaining a dependency on in-context documentation. To address these limitations, we propose ParaTool, a framework that projects each tool into a dedicated, loadable set of parameters. By equipping a dynamic integration of these parameterized tools, the LLM can perform tool calling without relying on in-context documents or examples. Specifically, our approach consists of three stages: (1) parametric tool pre-training encapsulates the knowledge of different tools into independent parameter modules; (2) soft tool selection employs a gating network to dynamically weigh and aggregate relevant tool parameters; and (3) parametric tool fine-tuning jointly updates tool parameters to align the training and inference processes. Experiments on Stable ToolBench and BFCL demonstrate that ParaTool significantly outperforms strong ICL-based baselines, achieving superior performance while reducing computational complexity.