mlsanityData to 14 Oct 2026

Looped Language Models Improve Compositional Tool Calling

arXiv 2608.18171 ↗First posted 17 Aug 2026cs.AI cs.LGcited by 2

On the map: LLM agents and tool use → Tool learning and function calling

Abstract (arXiv)

Looped language models have shown promising results on reasoning benchmarks, yet their potential for agentic tool use remains largely unexplored. We study this question in compositional tool-calling settings, where models must coordinate multiple API calls, maintain intermediate state, and preserve dependencies across tool interactions. We evaluate native and retrofitted looped language models on API-Bank, BFCL, and NESTful, comparing looped and non-looped models trained under matched supervised fine-tuning recipes and varying recurrent depth at inference time. In controlled experiments, recurrent computation generally benefits compositional and dependency-aware tool use, while providing smaller and more model-dependent gains on isolated API invocation. Accuracy on multi-step tool use generally increases with recurrent depth; adaptive inference, however, achieves a more favorable compute-performance trade-off by allocating additional computation only when needed. Our results suggest that looped language models are a promising architecture for agentic systems that require reliable planning, coordination, and execution of compositional tool use workflows.

Key facts. Cited by 2 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 22 of its 25 references that are in the map. First posted on arXiv 17 Aug 2026.

Builds on

22 of 25 references.

Closest ancestors · 5

Same direction, newest first

  1. 2024NESTFUL: A Benchmark for Evaluating LLMs on Nested Sequences of API Calls4 Sep
  2. 2023ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs31 Jul
  3. 2023Gorilla: Large Language Model Connected with Massive APIs24 May
  4. 2023API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs14 Apr
  5. 2023Toolformer: Language Models Can Teach Themselves to Use Tools9 Feb

Other references · 17

  1. 2019ALBERT: A Lite BERT for Self-supervised Learning of Language Representationscited by 2,790
  2. 2023HuggingGPT: Solving AI Tasks with ChatGPT and its Friends in Hugging Facecited by 1,190
  3. 2024Training Large Language Models to Reason in a Continuous Latent Spacecited by 797
  4. 2019Deep Equilibrium Modelscited by 615
  5. 2025Scaling up Test-Time Compute with Latent Reasoning: A Recurrent Depth Approachcited by 415
  6. 2023Chameleon: Plug-and-Play Compositional Reasoning with Large Language Modelscited by 356
  7. 2024Quiet-STaR: Language Models Can Teach Themselves to Think Before Speakingcited by 301
  8. 2025Reasoning with Latent Thoughts: On the Power of Looped Transformerscited by 240
  9. 2022Exploring Length Generalization in Large Language Modelscited by 206
  10. 2023An LLM Compiler for Parallel Function Callingcited by 179
  11. 2021PonderNet: Learning to Pondercited by 168
  12. 2025Scaling Latent Reasoning via Looped Language Modelscited by 165
5 more
  1. 2023Looped Transformers are Better at Learning Learning Algorithmscited by 149
  2. 2026LoopFormer: Elastic-Depth Looped Transformers for Latent Reasoning via Shortcut Modulationcited by 61
  3. 2025Teaching Pretrained Language Models to Think Deeper with Retrofitted Recurrencecited by 47
  4. 2026Loop, Think, & Generalize: Implicit Reasoning in Recurrent-Depth Transformerscited by 37
  5. 2026Adaptive Depth in Looped Transformers: Diagnosing Learned Halting Gates and Trajectory Readoutscited by 12

Built on by

Cited by year (2026 to 14 Oct)

Citing papers per year: 2026: 2.

2 papers.

Similar, not cited

Close in wording, no citation either way

  1. 2026Action-Space Shaping for LLM Agents: Measuring and Mitigating Tool-Schema Bias
  2. 2026MAVEN: Improving Generalization in Agentic Tool Calling
  3. 2026How Consistent Are LLM Agents? Measuring Behavioral Reproducibility in Multi-Step Tool-Calling Pipelines
  4. 2026ToolAtlas: Learning Once, Reusing Everywhere with Tool-Side Memory
  5. 2026From Agent Loops to Deterministic Graphs: Execution Lineage for Reproducible AI-Native Work
  6. 2026The Evolution of Tool Use in LLM Agents: From Single-Tool Call to Multi-Tool Orchestration
  7. 2026Internalizing Tool Knowledge in Small Language Models via QLoRA Fine-Tuning
  8. 2026Good to Go: The LOOP Skill Engine That Hits 99% Success and Slashes Token Usage by 99% via One-Shot Recording and Deterministic Replay