LLM-based "digital twins" aim to simulate how an individual would behavein new environments or respond to novel questions, given some representation of that individual's prior responses. A common approach constructs this representation from survey transcripts or summaries responses. Prior work shows that compressing long transcripts into shorter LLM-generated summaries does not significantly reduce predictive accuracy, suggesting that information volume is not the primary bottleneck. In this work, we argue that the key limitation is instead structural:how persona information is organized before being provided to thesimulator model. We study this by comparing unstructured summaries with structured persona representations. First, we introduce a hand-craftedschema (BDE: Background, Decision procedure, Evaluation), grounded in consumer-behavior theory, and show that it improves predictive accuracy over raw transcripts by +1.91 percentage points on a homogeneous benchmark (Twin-2K-500), with similar gains on gpt-5.4-mini and Qwen3-8B as robustness checks. However, this fixed structure does not generalizeacross more heterogeneous tasks, where performance is statistically indistinguishable from the raw transcript baseline. To address this limitation, we propose an automatic structure-discovery pipeline in which an LLM iteratively proposes and refines task-specific persona structures and extraction prompts. On a benchmark of 13 diverse sub-studies, this approach restores performance, improving mean accuracy by +1.91 percentage points over the raw transcript baseline and eliminating significant losses observed with the fixed schema. Overall, our results suggest that the main constraint in LLM-based digital twins is not how much information is provided, but how it is structured -- and that the optimal structure depends on the task.
Leonard Kinzinger, Jochen Hartmanncs.CY cs.AI cs.HC
LLM-based digital twins promise to scale and accelerate market research, but most published twins are either coarse persona bots conditioned on a few demographic questions or detailed individual-level twins built on purpose-collected surveys and interview transcripts. Neither setup speaks to the operationally most relevant case for marketing practice: building detailed individual twins from the pre-existing heterogeneous panel data that firms already accumulate through CRM systems, loyalty programs, and repeat surveys. We construct detailed individual-level twins from the German Socio-Economic Panel (SOEP) and evaluate them across a $3 \times 5 \times 2 \times 2$ construction-method grid that covers three open-weights LLMs, five cumulative information depths ranked by normalized Shannon entropy, two embedding methods, and two reasoning modes, scoring over 2.1 million twin responses on 500 participants and 183 held-out questions. Twin quality rises with information depth but with diminishing returns past the 75 percent entropy quartile, which acts as a cost-efficient Pareto point relative to the best-performing 100 percent cells. Switching the embedding from a narrative persona summary to a raw dialog history of past responses raises hold-out accuracy in every model-by-reasoning cell at the 100 percent depth, while an explicit thinking mode raises rank-order correlation without moving accuracy. Best-cell accuracy reaches 78.8 percent and Fisher-$z$ correlation reaches $r = 0.590$ on the SOEP held-out evaluation set. The findings suggest that twin-based market research is no longer gated by data design, but by item volume, model selection, and a small set of construction-level decisions that this paper now maps.