arXiv AI By Luan Ozelim, Hector Zenil

Measuring in-context algorithmic reasoning in language models against an exact Bayes-optimal reference

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The paper introduces F-ICL, a benchmark that measures in‑context algorithmic reasoning in language models by exhaustively enumerating 86 million valid programs of length ≤13 on a Turing‑complete machine and computing the exact posterior under a bounded Levin–Solomonoff prior. Unlike typical benchmarks, F‑ICL provides a distributional reference rather than just answers, allowing the evaluation of models’ inductive priors. Across 105 configurations of models ranging from 0.8 B to 675 B parameters, models achieve up to 92 % accuracy, yet many still deviate from the Bayes‑optimal reference, and the study derives theoretical bounds on cumulative loss for predictors with positive prior weight on the reference.

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