Daily Papers

Large language models (LLMs) are increasingly deployed as agents, expected to decompose goals, invoke tools, and verify results in dynamic environments. Realizing these capabilities requires access to agentic data-structured interaction records that couple user intents with tool specifications, argument-grounded calls, and verifiable execution traces. However, collecting such data from human annotators is costly, time-consuming, and difficult to scale. We present a unified framework for synthesizing agentic data using only LLMs, without any human-in-the-loop supervision. This framework decomposes generation into modular pipelines that produce complete interaction records spanning task specifications, tool definitions, policy pseudocode, natural language exchanges, and execution traces. Records conform to strict syntactic and semantic constraints, ensuring machine-parseability and faithful alignment across inputs, outputs, and tool calls. Beyond single tasks, there is support for both multi-task and multi-turn agent interactions, enabling the construction of datasets that reflect the full spectrum of tool-use competencies. To ensure quality and consistency, the framework integrates constrained generation formats, JSON-schema validation, and judge-based filtering. This paper formalizes the schema for agentic records, details the prompt design principles that guide generation, and introduces scalable pipelines for high-quality synthetic data. By providing a reproducible, LLM-only alternative to manual collection, hence advancing the development of agentic LLMs capable of robust tool use.

Small language models (SLMs; 1-12B params, sometimes up to 20B) are sufficient and often superior for agentic workloads where the objective is schema- and API-constrained accuracy rather than open-ended generation. We synthesize recent evidence across open and proprietary SLMs (Phi-4-Mini, Qwen-2.5-7B, Gemma-2-9B, Llama-3.2-1B/3B, Ministral-3B/8B, Apple on-device 3B, DeepSeek-R1-Distill) and connect it to modern evaluations (BFCL v3/v4, StableToolBench) and serving stacks (vLLM, SGLang, TensorRT-LLM) paired with guided decoding libraries (XGrammar, Outlines). We formalize SLM-default, LLM-fallback systems with uncertainty-aware routing and verifier cascades, and propose engineering metrics that reflect real production goals: cost per successful task (CPS), schema validity rate, executable call rate, p50/p95 latency, and energy per request. Guided decoding, strict JSON Schema outputs, and validator-first tool execution close much of the capability gap with larger models and often let SLMs match or surpass LLMs on tool use, function calling, and RAG at 10x-100x lower token cost with materially better latency and energy. We provide design patterns for agent stacks that prioritize SLMs: schema-first prompting, type-safe function registries, confidence scoring with verifier rollups, and lightweight adaptation via LoRA/QLoRA. We also delineate limits where fallback remains valuable (open-domain reasoning and some long-horizon planning). The result is a practical blueprint for building fast, inexpensive, and reliable agents that default to SLMs while preserving headroom with targeted LLM assistance. Keywords: small language models, agents, function calling, structured outputs, JSON Schema, guided decoding, LoRA/QLoRA, routing, energy efficiency, edge inference