# SerenAI: State-transition system inspired by text-based world AI models

arXiv: https://arxiv.org/abs/2609.06647 · HTML: https://mlsanity.com/paper/2609.06647/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 15 of its 22 references that are in the map.
- First posted on arXiv 6 Sep 2026.

## Builds on (most cited first, 15 of 15)

- [Training Verifiers to Solve Math Word Problems](https://mlsanity.com/paper/2110.14168/) (2021)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [On Calibration of Modern Neural Networks](https://mlsanity.com/paper/1706.04599/) (2017)
- [QLoRA: Efficient Finetuning of Quantized LLMs](https://mlsanity.com/paper/2305.14314/) (2023)
- [Extracting Training Data from Large Language Models](https://mlsanity.com/paper/2012.07805/) (2020)
- [A Survey on Hallucination in Large Language Models: Principles, Taxonomy, Challenges, and Open Questions](https://mlsanity.com/paper/2311.05232/) (2023)
- [World Models](https://mlsanity.com/paper/1803.10122/) (2018)
- [Not what you've signed up for: Compromising Real-World LLM-Integrated Applications with Indirect Prompt Injection](https://mlsanity.com/paper/2302.12173/) (2023)
- [LIMA: Less Is More for Alignment](https://mlsanity.com/paper/2305.11206/) (2023)
- [Model Cards for Model Reporting](https://mlsanity.com/paper/1810.03993/) (2018)
- [PICARD: Parsing Incrementally for Constrained Auto-Regressive Decoding from Language Models](https://mlsanity.com/paper/2109.05093/) (2021)
- [LegalBench: A Collaboratively Built Benchmark for Measuring Legal Reasoning in Large Language Models](https://mlsanity.com/paper/2308.11462/) (2023)
- [CUAD: An Expert-Annotated NLP Dataset for Legal Contract Review](https://mlsanity.com/paper/2103.06268/) (2021)
- [Grammar-Constrained Decoding for Structured NLP Tasks without Finetuning](https://mlsanity.com/paper/2305.13971/) (2023)

## Abstract (arXiv)

Although professional workflows leverage large language models widely, the interpretation for auditing unconstrained free-text generation is usually intractable if such generation demands legal, operational or financial workflow. We hereby demonstrate a text based system called SerenAI - inspired by world-models, it is a state transition system that outputs verifiable predictions rather than merely text: Provided with a description of the environment, state, and actions, the generated output contains 4 items: causal deltas that causally effect the given state, a next state that can logically follow from the given state and action, a validity reward, and a termination signal. For the released proto-model, we employ 2 steps of adaptation training, namely parameter efficient fine-tuning followed by verifier based RL over 50,000 exampled cause and effects in 12 environments spanning 10 reasoning domains. Compared to an initial internal evaluation of an 8B open-weight baseline, SerenAI increased JSON validity from 85.0% to 93.2%, schema validity from 55.0% to 84.0%, exact structured-output match from 0.0% to 41.5%, causal-delta exact match from 0.0% to 41.5%, resulting-state exact match from 0.0% to 42.0%, reward exact match from 1.0% to 80.5%, and termination exact match from 38.0% to 81.5%. These support the narrower claim that verifier-compatible adaptation can improve structured transition prediction. They do not yet establish legal-grade reliability. Accordingly, the paper also specifies a validation protocol for evidence-grounded legal workflows, calibration, human oversight, and sovereign on-premise deployment.