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ToolDial: Multi-turn Dialogue Generation Method for Tool-Augmented Language Models
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Builds ToolDial, a 11,111-dialogue multi-turn tool-augmented dialogue dataset generated from an API graph over RapidAPI APIs with 16 user/system actions, and benchmarks LLMs on dialogue state tracking, action prediction, and faithfulness.
Problem
Existing TALM benchmarks feature simplistic, mostly single-turn dialogues that lack clarifying questions, requests for missing parameters, and fallback to additional API calls when users cannot supply required information.
Approach
Generate multi-turn tool dialogues by sampling connected API pairs from an LLM-built API graph (edges mean one API's output can feed another's input), choosing a dialogue action sequence as skeleton, augmenting it with dialogue states, and then realizing utterances with GPT-4o.
Key results
- TD-Llama (fine-tuned Llama3-8B) reaches 77.5% action prediction accuracy with ground truth and 91.0% without, outperforming GPT-4o (57.6% and 63.7%).
- GPT-4o achieves 81.4% DST accuracy with ground truth but drops to 67.8% without ground truth; TD-Llama gets 92.7% and 72.2%.
- Overall full-dialogue reasoning trace accuracy for TD-Llama is about 28.3% across 1,166 test dialogues.
Measured effects reported in the paper
| What was changed | Where | Measured | Effect |
|---|---|---|---|
| Fine-tune Llama3-8B-Instruct on ToolDial | Llama3-8B-Instruct · ToolDial test, Dialogue State Tracking (w GT) | accuracy: 53.4 -> 92.7 | Helped |
| Fine-tune Llama3-8B-Instruct on ToolDial | Llama3-8B-Instruct · ToolDial test, Dialogue State Tracking (w/o GT) | accuracy: 24.5 -> 72.2 | Helped |
| Fine-tune Llama3-8B-Instruct on ToolDial | Llama3-8B-Instruct · ToolDial test, Action Prediction (w GT) | accuracy: 37.7 -> 77.5 | Helped |
| Fine-tune Llama3-8B-Instruct on ToolDial | Llama3-8B-Instruct · ToolDial test, Action Prediction (w/o GT) | accuracy: 35.5 -> 91.0 | Helped |
| Fine-tune Llama3-8B-Instruct on ToolDial | Llama3-8B-Instruct · ToolDial test, Faithfulness (w/o GT) | faithfulness: 91.5 -> 88.4 | Hurt |
Surprising findings
- GPT models rarely predict Request and Clarify actions, often rushing to answer instead of gathering information.
- TD-Llama's faithfulness (88.4%) is lower than GPT models (over 95%), indicating small models hallucinate more in responses.
Limitations
- About 30% of API graph edges are invalid (edge precision 70.9%), and dialogues are generated by GPT-4o with template-based instructions.
- Dialogues are limited to at most two chained APIs, and the dataset is English only.
- Edge validation relies on StableToolBench simulated API outputs rather than real API calls.
Experimental setup
Datasets: ToolDial RapidAPI APIs
Benchmarks: ToolDial
Metrics: dialogue state tracking accuracy action prediction accuracy per-action F1 faithfulness score
Baselines: GPT-3.5-turbo GPT-4o-mini GPT-4-turbo GPT-4o CodeLlama-7b-Instruct-hf Qwen2.5-Coder-7B-Instruct Llama3-8B-Instruct
Builds on: ToolBench API-Bank ToolTalk StableToolBench Schema-Guided Dialogue
Closest papers by meaning
- ToolACE-MT: Non-Autoregressive Generation for Agentic Multi-Turn Interaction (ICLR 2026 · similarity 0.88)
- ToolLLM: Facilitating Large Language Models to Master 16000+ Real-world APIs (ICLR 2024 · similarity 0.88)
- T1: A Tool-Oriented Conversational Dataset for Multi-Turn Agentic Planning (NeurIPS 2025 · similarity 0.88)
- ShortcutsBench: A Large-Scale Real-world Benchmark for API-based Agents (ICLR 2025 · similarity 0.87)
- ToolACE: Winning the Points of LLM Function Calling (ICLR 2025 · similarity 0.87)
- MINT: Evaluating LLMs in Multi-turn Interaction with Tools and Language Feedback (ICLR 2024 · similarity 0.87)
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