# CIPO: Counterfactual Imagination Policy Optimization for Adaptive Tool Granularity Selection

arXiv: https://arxiv.org/abs/2610.04991 · HTML: https://mlsanity.com/paper/2610.04991/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 58 of its 62 references that are in the map.
- First posted on arXiv 4 Oct 2026.

## Builds on (most cited first, 30 of 58)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [DeepSeekMath: Pushing the Limits of Mathematical Reasoning in Open Language Models](https://mlsanity.com/paper/2402.03300/) (2024)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [Neural Machine Translation of Rare Words with Subword Units](https://mlsanity.com/paper/1508.07909/) (2015)
- [Voyager: An Open-Ended Embodied Agent with Large Language Models](https://mlsanity.com/paper/2305.16291/) (2023)
- [WebArena: A Realistic Web Environment for Building Autonomous Agents](https://mlsanity.com/paper/2307.13854/) (2023)
- [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)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [MemGPT: Towards LLMs as Operating Systems](https://mlsanity.com/paper/2310.08560/) (2023)
- [Gorilla: Large Language Model Connected with Massive APIs](https://mlsanity.com/paper/2305.15334/) (2023)
- [AgentBench: Evaluating LLMs as Agents](https://mlsanity.com/paper/2308.03688/) (2023)
- [Code as Policies: Language Model Programs for Embodied Control](https://mlsanity.com/paper/2209.07753/) (2022)
- [Qwen2.5-Coder Technical Report](https://mlsanity.com/paper/2409.12186/) (2024)
- [A-MEM: Agentic Memory for LLM Agents](https://mlsanity.com/paper/2502.12110/) (2025)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Mem0: Building Production-Ready AI Agents with Scalable Long-Term Memory](https://mlsanity.com/paper/2504.19413/) (2025)
- [PAL: Program-aided Language Models](https://mlsanity.com/paper/2211.10435/) (2022)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [AFlow: Automating Agentic Workflow Generation](https://mlsanity.com/paper/2410.10762/) (2024)
- [Agent Workflow Memory](https://mlsanity.com/paper/2409.07429/) (2024)
- [ToolRL: Reward is All Tool Learning Needs](https://mlsanity.com/paper/2504.13958/) (2025)
- [AgentTuning: Enabling Generalized Agent Abilities for LLMs](https://mlsanity.com/paper/2310.12823/) (2023)
- [ToolSandbox: A Stateful, Conversational, Interactive Evaluation Benchmark for LLM Tool Use Capabilities](https://mlsanity.com/paper/2408.04682/) (2024)
- [SkillRL: Evolving Agents via Recursive Skill-Augmented Reinforcement Learning](https://mlsanity.com/paper/2602.08234/) (2026)
- [FireAct: Toward Language Agent Fine-tuning](https://mlsanity.com/paper/2310.05915/) (2023)

## Abstract (arXiv)

Large language model (LLM) agents solve complex tasks through multi-step interactions with external tools. These interactions often contain recurring local tool sequences. Treating such sequences as composite "Skills" can shorten tool-use trajectories and reduce repeated low-level decisions. However, when atomic tools and composite skills coexist, skill use becomes a policy problem: the agent must decide whether the current state requires atomic fine control or skill-level abstraction. In this paper, we argue that effective skill use should be studied as adaptive tool granularity selection. The most direct training signal for this problem is to compare the consequences of atomic and skill choices available from the same state. Based on this view, we propose CIPO, a Counterfactual Imagination Policy Optimization framework for adaptive tool granularity. CIPO constructs executable skills through budget-constrained mining of successful tool-use trajectories and trains granularity decisions with counterfactual branch rollouts. For each base rollout, CIPO branches at the first eligible granularity decision and replaces the chosen action with a feasible atomic or skill alternative. The paired outcome difference serves as a supplementary reward for policy optimization. Experiments across multiple benchmarks and model backbones show that CIPO improves task success and decision efficiency over baselines. Further analyses show that CIPO learns effective skill use by improving the choice between atomic tools and composite skills based on the current state, without simply increasing skill frequency.