Looped Language Models Improve Compositional Tool Calling

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Summary

Looped language models enhance compositional tool calling by leveraging recurrent computation, improving accuracy on multi-step tasks while adaptive inference optimizes the balance between performance and compute cost. The study suggests these models are promising for reliable agentic systems.

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.
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Source: https://huggingface.co/papers/2608.18171

Abstract

Looped language models improve compositional, multi-step tool use through recurrent computation, with adaptive inference balancing accuracy and compute cost.

Looped language modelshave shown promising results on reasoning benchmarks, yet their potential for agentic tool use remains largely unexplored. We study this question incompositional tool-callingsettings, where models must coordinate multiple API calls, maintain intermediate state, and preserve dependencies across tool interactions. We evaluate native and retrofittedlooped language modelsonAPI-Bank,BFCL, andNESTful, comparing looped and non-looped models trained under matched supervised fine-tuning recipes and varyingrecurrent depthat 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 onmulti-step tool usegenerally increases withrecurrent depth;adaptive inference, however, achieves a more favorable compute-performance trade-off by allocating additional computation only when needed. Our results suggest thatlooped language modelsare a promising architecture foragentic systemsthat require reliable planning, coordination, and execution of compositional tool use workflows.

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