World Modelling Improves Language Model Agents
Shangmin Guo, Omar Darwiche Domingues, Rapha\"el Avalos, Aaron Courville, Florian Strub

TL;DR
This paper introduces DyMo, a dynamics modeling approach that enhances language models with internal environment prediction, improving tool use success and reliability in stateful environments without extensive trial-based testing.
Contribution
The paper presents DyMo, a novel method for augmenting LLMs with internal environment modeling and integrates it with self-verification sampling to improve tool use and reliability.
Findings
DyMo improves success rates on the Berkeley Function Calling Leaderboard V2.
DyMo reduces hallucinations in language model outputs.
Integration with SVS enhances reliability and allows models to refuse unreliable outputs.
Abstract
Tool use in stateful environments presents unique challenges for large language models (LLMs), where existing test-time compute strategies relying on repeated trials in the environment are impractical. We propose dynamics modelling (DyMo), a method that augments LLMs with a state prediction capability alongside function calling during post-training. This enables LLMs to predict the future states of their actions through an internal environment model. On the Berkeley Function Calling Leaderboard V2, DyMo improves success rates and significantly reduces hallucinations. We further integrate the internal environment model into self-verification sampling (SVS), and show that this substantially improves pass^k over number of trials k, and allows the model to refuse unreliable outputs. Together, DyMo and SVS greatly enhance the effectiveness and reliability of LLMs for tool use. We believe…
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