Large language models (LLMs) augmented with external tools have demonstrated remarkable capability in solving complex real-world tasks. However, existing approaches suffer from two key challenges: brittle multi-step and multi-turn reasoning caused by incompatible tool output types and API schemas, and performance degradation under large tool catalogues. To address these, we introduce \textbf{Tool Primitives}, a design that replaces rigid API schema-based invocation with natural language as the interface for tool calling, where each tool is wrapped with an LLM interface that handles schema resolution and execution internally, enabling natural inter-tool communication for nested and multi-turn tool calling. Building on Tool Primitives, we host \textbf{ToolFace}, a centralized repository of 25,519 functions from which LLMs dynamically retrieve only the relevant tools at inference time, eliminating the need to enumerate raw API schemas in context. To orchestrate Tool Primitives and ToolFace reliably in complex settings, we further propose \textbf{HEART}, a \textbf{H}arness \textbf{E}ngineering framework via \textbf{A}gent-native, \textbf{R}eusable \textbf{T}ool Primitives, comprising a Planner, Router, and Verifier that jointly support dynamic tool invocation planning, multi-step execution, and feedback-driven recovery. Experiments on five benchmarks demonstrate that HEART outperforms SFT-based models by $10\%$ on average and surpasses GPT-5.4, Claude-4.6-Sonnet, and Gemini-3.1-Pro by $6\%$ on average while reducing API cost by up to $85\%$. On 50 real-world tasks, HEART achieves $84\%$ task completion, $3.8\times$ the average of three frontier commercial models ($22\%$).
Large language model (LLM) agents increasingly rely on invoking external tools to complete real-world tasks. Tool retrieval, which selects a small task-relevant subset from a library of thousands of tools before the agent acts, has therefore become a critical component of LLM agent pipelines. However, existing retrievers either score each tool in isolation or assemble the tool set sequentially, so the joint utility of a candidate set is never evaluated as a whole. In this paper, we propose HYSET, short for HYperedge-based SEt-level Tool retrieval. Our contributions are threefold: (i) we formulate tool retrieval as query-conditioned hyperedge prediction on a tool co-invocation hypergraph, under which the tool set itself becomes the unit of scoring and most existing retrieval paradigms reduce to restricted instances; (ii) we capture size-dependent tool compatibility through cardinality-specific interactions; and (iii) we design HYSET as a pre-selection module requiring no modification to the downstream agent. Experiments on ToolBench demonstrate that HYSET consistently outperforms state-of-the-art baselines in both tool retrieval performance and end-to-end task success. Beyond the in-domain setting, HYSET further supports zero-shot/few-shot transfer, generalizing to held-out tools/categories and unseen domains with minimal supervision.
We present MagicSelector, a joint optimization framework integrating Counterfactual task decomposition, Progressive reranking, and Dynamic Top-K, designed to address the fundamental challenges of tool retrieval in agents. MagicSelector is a specialized framework capable of translating ambiguous user instructions into executable atomic subtasks and guiding high-precision tool retrieval, effectively mitigating redundant noise and severe context distraction in out-of-domain (OOD) scenarios. We empower MagicSelector with these capabilities through three key contributions: (1) a preference-guided counterfactual task decomposition mechanism that utilizes a counterfactual reward to quantify the marginal causal gain of decomposition on retrieval ranking, effectively imposing fine-grained structural supervision on logical coherence; (2) a progressive tool reranking method driven by self-distillation hard negative mining, which optimizes both point-wise and list-wise relevance to enhance fine-grained discrimination among highly similar tools; and (3) a dual semantic boundary-aware dynamic Top-K strategy that adaptively monitors reranking score cliffs and inter-tool semantic shifts to dynamically truncate the candidate list, maximizing relevant tool recall while filtering long-tail noise. Evaluated on MTDTool, the first task decomposition benchmark we constructed tailored for mobile multi-turn interactions with process-level annotations, MagicSelector yields promising performance. Extensive experiments demonstrate that MagicSelector significantly outperforms state-of-the-art methods in terms of tool retrieval accuracy, OOD generalization capability, and overall token efficiency, thereby demonstrating the effectiveness of our proposed framework.
Sai Shruthi Sistla, Ashutosh Hathidara, Christopher Toukmaji +2cs.AI
Parametric retrieval enables LLMs to retrieve tools implicitly by assigning each API a unique virtual token and training the model to generate it via constrained beam search. Toolsense shows that this regime has two critical drawbacks: it destroys parametric tool knowledge during training, and its beam-search decoding is too slow for real-time deployment. We introduce TRACE (Tool Retrieval via Augmented Chain-of-thought and Enterprise rules), a two-stage curriculum that resolves this dissociation. Stage 1 reuses the multi-format memorization SFT from ToolSense to seed tool knowledge with LoRA. Stage 2 is our core contribution: the model is trained to emit a thinking trace before producing a JSON list of tool tokens, using two data sources -- RRB pairs from ToolSense and queries synthesized to target business rules curated by domain experts -- both augmented with reasoning traces. This training objective preserves Stage 1 MCQ and QA probing accuracy while enabling single-beam greedy decoding at production latency. Evaluated on a combined enterprise catalog of 8,300+ tools across two enterprise product lines, TRACE training for Stage 2 not only preserves but improves tool understanding: MCQ accuracy gains +3.2 pp and QA probing gains +9 pp over Stage 1. On retrieval, TRACE achieves ~86% recall on Domain A and ~60% on Domain B -- compared to embedding baseline performance of ~27% & ~52% -- both with single-beam greedy decoding, making it directly deployable at production latency.
Ashutosh Hathidara, Sai Shruthi Sistla, Sebastian Schreiber +1cs.AI cs.IR cs.LG
Large language models deployed as agents over large tool catalogs face a critical tool-retrieval bottleneck. As embedding-based retrieval approaches rely on compact encoders that may under-capture specialized tool semantics, parametric tool retrieval addresses this by encoding each tool as a virtual token appended to the LLM vocabulary, fine-tuned in two stages (memorization then retrieval SFT) to use the LLM as a retriever, achieving strong performance on standard ToolBench retrieval benchmarks. Yet these benchmarks use verbose, fully-specified queries, and their evaluation applies constrained decoding that restricts outputs to valid token paths, neither reveals whether the model actually understands its tools. We introduce \textbf{ToolSense}, an open-source LLM-powered diagnostic framework that takes any tool catalog as input and automatically generates three benchmarks: a Realistic Retrieval Benchmark (RRB) with queries at three ambiguity tiers, an MCQ probing benchmark, and a QA probing benchmark. Applying ToolSense to ToolBench (~47k tools) and evaluating five parametric model training configurations reveals a knowledge-retrieval dissociation: on RRB queries, several configurations collapse by ~50-64 percentage points compared to fully-specified ToolBench benchmarks, falling below the embedding-model baseline. Additionally, despite strong retrieval performance, some models score near-random on factual probes, suggesting a knowledge-retrieval dissociation. We open-source the ToolSense framework and the ToolBench diagnostic benchmarks at https://github.com/SAP/toolsense.