arXiv AI By Laxmipriya Ganesh Iyer

Closed-World Resolution Against Tool Hallucination in LLM Agents

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The paper investigates a new failure mode of tool‑augmented large language model agents: calling non‑existent tools with arguments that do not match any declared schema. It introduces a five‑class taxonomy of tool hallucination, presents a training‑free closed‑world resolver that checks registry membership and signatures, and demonstrates that hallucinations persist across ten hosted models and various invocation surfaces, including the Model Context Protocol. The authors release a Hallucinated‑Tools Benchmark to enable comparison of resolver methods.

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