State Design Matters: How Representations Shape Dynamic Reasoning in Large Language Models

Fuente: arXiv
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Autores principales: Wong, Annie, Plaat, Aske, Bäck, Thomas, van Stein, Niki, Kononova, Anna V.
Formato: Preprint
Publicado: 2026
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author Wong, Annie
Plaat, Aske
Bäck, Thomas
van Stein, Niki
Kononova, Anna V.
author_facet Wong, Annie
Plaat, Aske
Bäck, Thomas
van Stein, Niki
Kononova, Anna V.
contents As large language models (LLMs) move from static reasoning tasks toward dynamic environments, their success depends on the ability to navigate and respond to an environment that changes as they interact at inference time. An underexplored factor in these settings is the representation of the state. Holding model parameters fixed, we systematically vary three key aspects: (1) state granularity (long form versus summary), (2) structure (natural language versus symbolic), and (3) spatial grounding (text-only versus images or textual map encodings) across sequential decision-making benchmarks. We find that trajectory summarisation improves performance by reducing noise and stabilising long-horizon reasoning. Second, natural language representations are the most robust across models, whereas structured encodings help mainly for models with strong code or structured output priors, such as JSON schemas. Third, while image-inputs show some benefit, text-based spatial encodings prove most effective. This advantage stems not from the spatial information itself, but from the act of construction, which compels the model to perform the spatial reasoning that static input does not elicit. Overall, we demonstrate that design choices for representing state are a decisive factor in performance, distinct from the availability of information itself. We note, however, that even with improved representations, current LLMs and VLMs remain brittle over long horizons, particularly when they must synthesise information to manage multiple subtasks to reach a goal.
format Preprint
id arxiv_https___arxiv_org_abs_2602_15858
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle State Design Matters: How Representations Shape Dynamic Reasoning in Large Language Models
Wong, Annie
Plaat, Aske
Bäck, Thomas
van Stein, Niki
Kononova, Anna V.
Computation and Language
Artificial Intelligence
As large language models (LLMs) move from static reasoning tasks toward dynamic environments, their success depends on the ability to navigate and respond to an environment that changes as they interact at inference time. An underexplored factor in these settings is the representation of the state. Holding model parameters fixed, we systematically vary three key aspects: (1) state granularity (long form versus summary), (2) structure (natural language versus symbolic), and (3) spatial grounding (text-only versus images or textual map encodings) across sequential decision-making benchmarks. We find that trajectory summarisation improves performance by reducing noise and stabilising long-horizon reasoning. Second, natural language representations are the most robust across models, whereas structured encodings help mainly for models with strong code or structured output priors, such as JSON schemas. Third, while image-inputs show some benefit, text-based spatial encodings prove most effective. This advantage stems not from the spatial information itself, but from the act of construction, which compels the model to perform the spatial reasoning that static input does not elicit. Overall, we demonstrate that design choices for representing state are a decisive factor in performance, distinct from the availability of information itself. We note, however, that even with improved representations, current LLMs and VLMs remain brittle over long horizons, particularly when they must synthesise information to manage multiple subtasks to reach a goal.
title State Design Matters: How Representations Shape Dynamic Reasoning in Large Language Models
topic Computation and Language
Artificial Intelligence
url https://arxiv.org/abs/2602.15858