arXiv subjects

Archana Vaidheeswaran

Publications and source records attributed to Archana Vaidheeswaran.

5 recordsLinked to original sources

arXiv2026

Triggers and Diagnostics for LLM-Based Interpretability Failures in Active Inference Agents

LLM explainers are increasingly attached to autonomous agents as runtime oversight, with operators reading a generated account of the agent's beliefs and actions rather than its internal state. We audit the account itself, pairing an Active Inference (AIF) agent that tracks German grid demand and adjusts generation with an LLM explainer on three backends (GPT-4o, Claude-3-Opus, Gemini), and probing the pair with three black-box triggers. Corrupting the observation stream by 600 MW per step moves the agent's posterior by 490 MW, roughly 0.9% of grid capacity. None of the 30 explanations produced during the injection flag anything under a stated rubric, and each narrates the corrupted belief fluently. On timesteps where the agent takes an objectively wrong action, all three explainers produce a sycophantic rationalization 80-95% of the time (n = 20 per backend). Attacker-controlled text in the observation metadata field steers the explainer, with susceptibility differing by provider and data exfiltration succeeding on all three. We propose mitigations for each failure but do not evaluate them. In every failure we observed, the explanation was fluent and wrong. Moreover, nothing in the explainer architecture checks whether an explanation is true before an operator acts on it. Testing the explainer therefore belongs in any audit of an agentic deployment.

cs.LG↗

arXiv2026

Preference Optimization Drives Monoculture in LLM Prediction Markets

Prediction markets rest on the independence of participant errors. As LLM agents become active traders on platforms like Kalshi and Polymarket, we ask: does this independence hold when the crowd is composed of LLMs? We find it does not. LLM agents fine-tuned with Direct Preference Optimization (DPO) share a convergent output distribution, producing pairwise error correlations of $ρ= 0.70$ and reducing ten agents to the effective forecasting power of ${\approx}1.4$ independent forecasters $N_{\text{eff}}$. This is not a scaling problem: $N_{\text{eff}}$ remains flat from $N=5$ to $N=40$, and the 10-agent market (67.6%) fails to match a single standalone agent (70.2%). Two controlled ablations isolate preference optimization as the causal driver, replicated across labs and scales ($Δρ= +0.24$ to $+0.46$ on identical-SFT controls at 8B and 70B). Among mitigations tested, cross-model diversity achieves the largest correlation reduction ($ρ$ from 0.68 to 0.40). As LLMs become more aligned, markets built from them become more monocultural.

cs.CE↗

arXiv2026

Interpreting Latent CoT Reasoning as Dynamical Systems

Recent latent reasoning methods, such as CODI and COCONUT, face a fundamental interpretability problem: they maintain multiple superimposed candidate traces in the hidden space at each step, unlike explicit- CoT, which follows a single transparent reasoning trace. Existing mechanistic methods show compression, shortcuts, and superposition without explaining how reasoning evolves across latent steps. To address this gap, we model latent token sequences as trajectories in representation space and apply dynamical systems analysis to characterize the evolution of reasoning. Using quantitative measures, such as step-to-step change, direction consistency, and Lyapunov sensitivity, alongside qualitative projections, such as UMAP and DMD/PHATE, we show that latent CoT exhibits structured, non-random dynamics with two distinct stability classes. CODI behaves as a stable attractor, while COCONUT behaves as an unstable expanding system, and SIM-CoT supervision tightens both behaviors without changing the underlying dynamics. This framework advances the interpretability of latent CoT reasoning dynamics and provides actionable insights for improving latent reasoning performance. Code1 and Project page2 available online.

cs.AI↗

arXiv2026

From Competition to Coordination: Market Making as a Scalable Framework for Safe and Aligned Multi-Agent LLM Systems

As foundation models are increasingly deployed as interacting agents in multi-agent systems, their collective behavior raises new challenges for trustworthiness, transparency, and accountability. Traditional coordination mechanisms, such as centralized oversight or adversarial adjudication, struggle to scale and often obscure how decisions emerge. We introduce a market-making framework for multi-agent large language model (LLM) coordination that organizes agent interactions as structured economic exchanges. In this setup, each agent acts as a market participant, updating and trading probabilistic beliefs, to converge toward shared, truthful outcomes. By aligning local incentives with collective epistemic goals, the framework promotes self-organizing, verifiable reasoning without requiring external enforcement. Empirically, we evaluate this approach across factual reasoning, ethical judgment, and commonsense inference tasks. Market-based coordination yields accuracy gains of up to 10% over single-shot baselines while preserving interpretability and transparency of intermediate reasoning steps. Beyond these improvements, our findings demonstrate that economic coordination principles can operationalize accountability and robustness in multi-agent LLM systems, offering a scalable pathway toward self-correcting, socially responsible AI capable of maintaining trust and oversight in real world deployment scenarios.

cs.MA↗

arXiv2025

HumanMCP: A Human-Like Query Dataset for Evaluating MCP Tool Retrieval Performance

Model Context Protocol (MCP) servers contain a collection of thousands of open-source standardized tools, linking LLMs to external systems; however, existing datasets and benchmarks lack realistic, human-like user queries, remaining a critical gap in evaluating the tool usage and ecosystems of MCP servers. Existing datasets often do contain tool descriptions but fail to represent how different users portray their requests, leading to poor generalization and inflated reliability of certain benchmarks. This paper introduces the first large-scale MCP dataset featuring diverse, high-quality diverse user queries generated specifically to match 2800 tools across 308 MCP servers, developing on the MCP Zero dataset. Each tool is paired with multiple unique user personas that we have generated, to capture varying levels of user intent ranging from precise task requests, and ambiguous, exploratory commands, reflecting the complexity of real-world interaction patterns.

cs.AI↗