Daily Papers

Imitation learning suffers from causal confusion. This phenomenon occurs when learned policies attend to features that do not causally influence the expert actions but are instead spuriously correlated. Causally confused agents produce low open-loop supervised loss but poor closed-loop performance upon deployment. We consider the problem of masking observed confounders in a disentangled representation of the observation space. Our novel masking algorithm leverages the usual ability to intervene in the initial system state, avoiding any requirement involving expert querying, expert reward functions, or causal graph specification. Under certain assumptions, we theoretically prove that this algorithm is conservative in the sense that it does not incorrectly mask observations that causally influence the expert; furthermore, intervening on the initial state serves to strictly reduce excess conservatism. The masking algorithm is applied to behavior cloning for two illustrative control systems: CartPole and Reacher.

Existing evaluation paradigms for Autonomous Vehicles (AVs) face critical limitations. Real-world evaluation is often challenging due to safety concerns and a lack of reproducibility, whereas closed-loop simulation can face insufficient realism or high computational costs. Open-loop evaluation, while being efficient and data-driven, relies on metrics that generally overlook compounding errors. In this paper, we propose pseudo-simulation, a novel paradigm that addresses these limitations. Pseudo-simulation operates on real datasets, similar to open-loop evaluation, but augments them with synthetic observations generated prior to evaluation using 3D Gaussian Splatting. Our key idea is to approximate potential future states the AV might encounter by generating a diverse set of observations that vary in position, heading, and speed. Our method then assigns a higher importance to synthetic observations that best match the AV's likely behavior using a novel proximity-based weighting scheme. This enables evaluating error recovery and the mitigation of causal confusion, as in closed-loop benchmarks, without requiring sequential interactive simulation. We show that pseudo-simulation is better correlated with closed-loop simulations (R^2=0.8) than the best existing open-loop approach (R^2=0.7). We also establish a public leaderboard for the community to benchmark new methodologies with pseudo-simulation. Our code is available at https://github.com/autonomousvision/navsim.

We present Game-TARS, a generalist game agent trained with a unified, scalable action space anchored to human-aligned native keyboard-mouse inputs. Unlike API- or GUI-based approaches, this paradigm enables large-scale continual pre-training across heterogeneous domains, including OS, web, and simulation games. Game-TARS is pre-trained on over 500B tokens with diverse trajectories and multimodal data. Key techniques include a decaying continual loss to reduce causal confusion and an efficient Sparse-Thinking strategy that balances reasoning depth and inference cost. Experiments show that Game-TARS achieves about 2 times the success rate over the previous sota model on open-world Minecraft tasks, is close to the generality of fresh humans in unseen web 3d games, and outperforms GPT-5, Gemini-2.5-Pro, and Claude-4-Sonnet in FPS benchmarks. Scaling results on training-time and test-time confirm that the unified action space sustains improvements when scaled to cross-game and multimodal data. Our results demonstrate that simple, scalable action representations combined with large-scale pre-training provide a promising path toward generalist agents with broad computer-use abilities.

The autonomous driving community has witnessed a rapid growth in approaches that embrace an end-to-end algorithm framework, utilizing raw sensor input to generate vehicle motion plans, instead of concentrating on individual tasks such as detection and motion prediction. End-to-end systems, in comparison to modular pipelines, benefit from joint feature optimization for perception and planning. This field has flourished due to the availability of large-scale datasets, closed-loop evaluation, and the increasing need for autonomous driving algorithms to perform effectively in challenging scenarios. In this survey, we provide a comprehensive analysis of more than 250 papers, covering the motivation, roadmap, methodology, challenges, and future trends in end-to-end autonomous driving. We delve into several critical challenges, including multi-modality, interpretability, causal confusion, robustness, and world models, amongst others. Additionally, we discuss current advancements in foundation models and visual pre-training, as well as how to incorporate these techniques within the end-to-end driving framework. To facilitate future research, we maintain an active repository that contains up-to-date links to relevant literature and open-source projects at https://github.com/OpenDriveLab/End-to-end-Autonomous-Driving.

Existing end-to-end autonomous driving (AD) algorithms typically follow the Imitation Learning (IL) paradigm, which faces challenges such as causal confusion and the open-loop gap. In this work, we establish a 3DGS-based closed-loop Reinforcement Learning (RL) training paradigm. By leveraging 3DGS techniques, we construct a photorealistic digital replica of the real physical world, enabling the AD policy to extensively explore the state space and learn to handle out-of-distribution scenarios through large-scale trial and error. To enhance safety, we design specialized rewards that guide the policy to effectively respond to safety-critical events and understand real-world causal relationships. For better alignment with human driving behavior, IL is incorporated into RL training as a regularization term. We introduce a closed-loop evaluation benchmark consisting of diverse, previously unseen 3DGS environments. Compared to IL-based methods, RAD achieves stronger performance in most closed-loop metrics, especially 3x lower collision rate. Abundant closed-loop results are presented at https://hgao-cv.github.io/RAD.

Binaural rendering aims to synthesize binaural audio that mimics natural hearing based on a mono audio and the locations of the speaker and listener. Although many methods have been proposed to solve this problem, they struggle with rendering quality and streamable inference. Synthesizing high-quality binaural audio that is indistinguishable from real-world recordings requires precise modeling of binaural cues, room reverb, and ambient sounds. Additionally, real-world applications demand streaming inference. To address these challenges, we propose a flow matching based streaming binaural speech synthesis framework called BinauralFlow. We consider binaural rendering to be a generation problem rather than a regression problem and design a conditional flow matching model to render high-quality audio. Moreover, we design a causal U-Net architecture that estimates the current audio frame solely based on past information to tailor generative models for streaming inference. Finally, we introduce a continuous inference pipeline incorporating streaming STFT/ISTFT operations, a buffer bank, a midpoint solver, and an early skip schedule to improve rendering continuity and speed. Quantitative and qualitative evaluations demonstrate the superiority of our method over SOTA approaches. A perceptual study further reveals that our model is nearly indistinguishable from real-world recordings, with a 42% confusion rate.

Understanding commonsense causality is a unique mark of intelligence for humans. It helps people understand the principles of the real world better and benefits the decision-making process related to causation. For instance, commonsense causality is crucial in judging whether a defendant's action causes the plaintiff's loss in determining legal liability. Despite its significance, a systematic exploration of this topic is notably lacking. Our comprehensive survey bridges this gap by focusing on taxonomies, benchmarks, acquisition methods, qualitative reasoning, and quantitative measurements in commonsense causality, synthesizing insights from over 200 representative articles. Our work aims to provide a systematic overview, update scholars on recent advancements, provide a pragmatic guide for beginners, and highlight promising future research directions in this vital field.

Although the existing causal inference literature focuses on the forward-looking perspective by estimating effects of causes, the backward-looking perspective can provide insights into causes of effects. In backward-looking causal inference, the probability of necessity measures the probability that a certain event is caused by the treatment given the observed treatment and outcome. Most existing results focus on binary outcomes. Motivated by applications with ordinal outcomes, we propose a general definition of the probability of necessity. However, identifying the probability of necessity is challenging because it involves the joint distribution of the potential outcomes. We propose a novel assumption of monotonic incremental treatment effect to identify the probability of necessity with ordinal outcomes. We also discuss the testable implications of this key identification assumption. When it fails, we derive explicit formulas of the sharp large-sample bounds on the probability of necessity.

The traditional i.i.d.-based learning paradigm faces inherent challenges in addressing causal relationships, which has become increasingly evident with the rise of applications in causal representation learning. Our understanding of causality naturally requires a perspective as the creator rather than observer, as the ``what...if'' questions only hold within the possible world we conceive. The traditional perspective limits capturing dynamic causal outcomes and leads to compensatory efforts such as the reliance on hidden confounders. This paper lays the groundwork for the new perspective, which enables the relation-first modeling paradigm for causality. Also, it introduces the Relation-Indexed Representation Learning (RIRL) as a practical implementation, supported by experiments that validate its efficacy.

End-to-end autonomous driving aims to build a fully differentiable system that takes raw sensor data as inputs and directly outputs the planned trajectory or control signals of the ego vehicle. State-of-the-art methods usually follow the `Teacher-Student' paradigm. The Teacher model uses privileged information (ground-truth states of surrounding agents and map elements) to learn the driving strategy. The student model only has access to raw sensor data and conducts behavior cloning on the data collected by the teacher model. By eliminating the noise of the perception part during planning learning, state-of-the-art works could achieve better performance with significantly less data compared to those coupled ones. However, under the current Teacher-Student paradigm, the student model still needs to learn a planning head from scratch, which could be challenging due to the redundant and noisy nature of raw sensor inputs and the casual confusion issue of behavior cloning. In this work, we aim to explore the possibility of directly adopting the strong teacher model to conduct planning while letting the student model focus more on the perception part. We find that even equipped with a SOTA perception model, directly letting the student model learn the required inputs of the teacher model leads to poor driving performance, which comes from the large distribution gap between predicted privileged inputs and the ground-truth. To this end, we propose DriveAdapter, which employs adapters with the feature alignment objective function between the student (perception) and teacher (planning) modules. Additionally, since the pure learning-based teacher model itself is imperfect and occasionally breaks safety rules, we propose a method of action-guided feature learning with a mask for those imperfect teacher features to further inject the priors of hand-crafted rules into the learning process.

Commonsense causality reasoning (CCR) aims at identifying plausible causes and effects in natural language descriptions that are deemed reasonable by an average person. Although being of great academic and practical interest, this problem is still shadowed by the lack of a well-posed theoretical framework; existing work usually relies on deep language models wholeheartedly, and is potentially susceptible to confounding co-occurrences. Motivated by classical causal principles, we articulate the central question of CCR and draw parallels between human subjects in observational studies and natural languages to adopt CCR to the potential-outcomes framework, which is the first such attempt for commonsense tasks. We propose a novel framework, ROCK, to Reason O(A)bout Commonsense K(C)ausality, which utilizes temporal signals as incidental supervision, and balances confounding effects using temporal propensities that are analogous to propensity scores. The ROCK implementation is modular and zero-shot, and demonstrates good CCR capabilities.

When contextual information conflicts with the knowledge stored in model parameters, activation directions can be used to decode and steer which source the model follows. However, steering along a direction does not establish causality: whether the unedited model would naturally use that direction or whether the direction is reusable across tasks. We test these distinctions through counterfactual experiments in unambiguous settings. First, we estimate authority directions from agreement prompts, in which the context and parametric knowledge support the same answer. We then interchange naturally occurring coordinates along these directions between matched prompts that direct the model to prioritize either the supplied context or its parametric knowledge. Across Qwen, Llama, and OLMo models, this intervention reproduces 30-68% of the authority-induced shift in source choice, whereas matched controls reproduce almost none. To test cross-task reuse, we learn authority directions on two tasks separately and see that cross-task transferability closes only 9% of the authority gap while the local direction learned on the given task closes 57%. These results distinguish authority representation, causal use, and cross-task causal reuse, and suggest that authority computations may be task-dependent, rather than reusable across tasks.

For many real-world systems, causal ground truth is difficult to obtain, making claims about causal effects hard to assess. We develop methods for evaluating collections of n{2} bivariate causal statements over a set of n variables. In the setting of acyclic linear statements, any such collection can be extended to a unique multivariate causal model, but we argue that this induced model is implausible if it imposes substantial additional confounding to explain observed correlations. We introduce a compatibility score that quantifies this notion of plausibility, notably without relying on the faithfulness assumption. Additionally, we define an incompatibility score for purely graphical bivariate causal statements, based on global consistency constraints that are derived from acyclicity and faithfulness assumptions. We give theoretical and empirical evidence that both scores can successfully distinguish correct from incorrect causal statements in generic settings. Moreover, we demonstrate the practical applicability of our methods by analyzing causal claims made by large language models. Our work aims to provide a foundation for assessing the reliability of causal information derived from human experts or artificial intelligence in settings where alternative forms of validation are unavailable.

Understanding causality has vital importance for various Natural Language Processing (NLP) applications. Beyond the labeled instances, conceptual explanations of the causality can provide deep understanding of the causal facts to facilitate the causal reasoning process. However, such explanation information still remains absent in existing causal reasoning resources. In this paper, we fill this gap by presenting a human-annotated explainable CAusal REasoning dataset (e-CARE), which contains over 21K causal reasoning questions, together with natural language formed explanations of the causal questions. Experimental results show that generating valid explanations for causal facts still remains especially challenging for the state-of-the-art models, and the explanation information can be helpful for promoting the accuracy and stability of causal reasoning models.

When people reason about cause and effect, they often consider many competing "what if" scenarios before deciding which explanation fits best. Analogously, advanced language models capable of causal inference can consider multiple interventions and counterfactuals to judge the validity of causal claims. Crucially, this type of reasoning is less like a single calculation and more like an internal dialogue between alternative hypotheses. In this paper, we make this dialogue explicit through a dual-agent debate framework where one model provides a structured causal inference, and the other critically examines this reasoning for logical flaws. When disagreements arise, agents attempt to persuade each other, challenging each other's logic and revising their conclusions until they converge on a mutually agreed answer. To take advantage of this deliberative process, we specifically use reasoning language models, whose strengths in both causal inference and adversarial debate remain under-explored relative to standard large language models. We evaluate our approach on the CLadder dataset, a benchmark linking natural language questions to formally defined causal graphs across all three rungs of Pearl's ladder of causation. With Qwen3 and DeepSeek-R1 as debater agents, we demonstrate that multi-agent debate improves DeepSeek-R1's overall accuracy in causal inference from 78.03% to 87.45%, with the counterfactual category specifically improving from 67.94% to 80.04% accuracy. Similarly, Qwen3's overall accuracy improves from 84.16% to 89.41%, and counterfactual questions from 71.53% to 80.35%, showing that strong models can still benefit greatly from debate with weaker agents. Our results highlight the potential of reasoning models as building blocks for multi-agent systems in causal inference, and demonstrate the importance of diverse perspectives in causal problem-solving.

To address this gap, our study introduces the concept of causal epistemic consistency, which focuses on the self-consistency of Large Language Models (LLMs) in differentiating intermediates with nuanced differences in causal reasoning. We propose a suite of novel metrics -- intensity ranking concordance, cross-group position agreement, and intra-group clustering -- to evaluate LLMs on this front. Through extensive empirical studies on 21 high-profile LLMs, including GPT-4, Claude3, and LLaMA3-70B, we have favoring evidence that current models struggle to maintain epistemic consistency in identifying the polarity and intensity of intermediates in causal reasoning. Additionally, we explore the potential of using internal token probabilities as an auxiliary tool to maintain causal epistemic consistency. In summary, our study bridges a critical gap in AI research by investigating the self-consistency over fine-grained intermediates involved in causal reasoning.

We show that there is a general, informative and reliable procedure for discovering causal relations when, for all the investigator knows, both latent variables and selection bias may be at work. Given information about conditional independence and dependence relations between measured variables, even when latent variables and selection bias may be present, there are sufficient conditions for reliably concluding that there is a causal path from one variable to another, and sufficient conditions for reliably concluding when no such causal path exists.

We address causal reasoning in multivariate time series data generated by stochastic processes. Existing approaches are largely restricted to static settings, ignoring the continuity and emission of variations across time. In contrast, we propose a learning paradigm that directly establishes causation between events in the course of time. We present two key lemmas to compute causal contributions and frame them as reinforcement learning problems. Our approach offers formal and computational tools for uncovering and quantifying causal relationships in diffusion processes, subsuming various important settings such as discrete-time Markov decision processes. Finally, in fairly intricate experiments and through sheer learning, our framework reveals and quantifies causal links, which otherwise seem inexplicable.

Learning causal structure from observational data often assumes that we observe independent and identically distributed (i.\,i.\,d) data. The traditional approach aims to find a graphical representation that encodes the same set of conditional independence relationships as those present in the observed distribution. It is known that under i.\,i.\,d assumption, even with infinite data, there is a limit to how fine-grained a causal structure we can identify. To overcome this limitation, recent work has explored using data originating from different, related environments to learn richer causal structure. These approaches implicitly rely on the independent causal mechanisms (ICM) principle, which postulates that the mechanism giving rise to an effect given its causes and the mechanism which generates the causes do not inform or influence each other. Thus, components of the causal model can independently change from environment to environment. Despite its wide application in machine learning and causal inference, there is a lack of statistical formalization of the ICM principle and how it enables identification of richer causal structures from grouped data. Here we present new causal de Finetti theorems which offer a first statistical formalization of ICM principle and show how causal structure identification is possible from exchangeable data. Our work provides theoretical justification for a broad range of techniques leveraging multi-environment data to learn causal structure.

Research on causality extraction from text has so far almost entirely neglected counterclaims. Existing causality extraction datasets focus solely on "procausal" claims, i.e., statements that support a relationship. "Concausal" claims, i.e., statements that refute a relationship, are entirely ignored or even accidentally annotated as procausal. We address this shortcoming by developing a new dataset that integrates concausality. Based on an extensive literature review, we first show that concausality is an integral part of causal reasoning on incomplete knowledge. We operationalize this theory in the form of a rigorous guideline for annotation and then augment the Causal News Corpus with concausal statements, obtaining a substantial inter-annotator agreement of Cohen's κ=0.74. To demonstrate the importance of integrating concausal statements, we show that models trained without concausal relationships tend to misclassify these as procausal instead. Based on our new dataset, this mistake can be mitigated, enabling transformers to effectively distinguish pro- and concausality.

A central goal of science is to produce valid explanations of complex systems: high-level causal accounts that faithfully reflect the behavior of lower-level mechanisms. Yet no consensus exists on how to measure whether a proposed high-level explanation is actually valid. We introduce a benchmark of ten complex systems spanning both discrete and continuous state spaces, as well as static and dynamical regimes, each equipped with consensual ground-truth causal explanations and invalid contrastive conditions. Within a unified causal abstraction framework, we systematically evaluate over thirty candidate metrics drawn from observational, functional, information-theoretic, and causal families. Our results show that only the latter reliably discriminates valid from invalid abstractions, and only when incorporating faithfulness testing over unmapped variables. Building on these findings, we introduce the Causal Abstraction Error (CAE), a continuous validity metric with an explicit faithfulness test, which passes all discrimination tests across every system and can converge with as few as 30 sampled interventions. We offer it as a general-purpose metric for the discovery and validation of high-level explanations.

As chain of thought (CoT) has become central to scaling reasoning capabilities in large language models (LLMs), it has also emerged as a promising tool for interpretability, suggesting the opportunity to understand model decisions through verbalized reasoning. However, the utility of CoT toward interpretability depends upon its faithfulness---whether the model's stated reasoning reflects the underlying decision process. We provide mechanistic evidence that instruction-tuned models often determine their answer before generating CoT. Training linear probes on residual stream activations at the last token before CoT, we can predict the model's final answer with >0.9 AUC on most tasks. We find that these directions are not only predictive, but also causal: steering activations along the probe direction often flips model answers, with flip rates substantially exceeding norm-matched orthogonal baselines across most model-dataset pairs. When steering induces incorrect answers, we observe two distinct failure modes: confabulation (fabricating false premises) and non-entailment (stating correct premises but drawing unsupported conclusions). While post-hoc reasoning may be instrumentally useful when the model has a correct pre-CoT belief, these failure modes suggest it can result in undesirable behaviors when reasoning from a false belief.

We develop a method for generating causal post-hoc explanations of black-box classifiers based on a learned low-dimensional representation of the data. The explanation is causal in the sense that changing learned latent factors produces a change in the classifier output statistics. To construct these explanations, we design a learning framework that leverages a generative model and information-theoretic measures of causal influence. Our objective function encourages both the generative model to faithfully represent the data distribution and the latent factors to have a large causal influence on the classifier output. Our method learns both global and local explanations, is compatible with any classifier that admits class probabilities and a gradient, and does not require labeled attributes or knowledge of causal structure. Using carefully controlled test cases, we provide intuition that illuminates the function of our objective. We then demonstrate the practical utility of our method on image recognition tasks.

Being able to provide explanations for a model's decision has become a central requirement for the development, deployment, and adoption of machine learning models. However, we are yet to understand what explanation methods can and cannot do. How do upstream factors such as data, model prediction, hyperparameters, and random initialization influence downstream explanations? While previous work raised concerns that explanations (E) may have little relationship with the prediction (Y), there is a lack of conclusive study to quantify this relationship. Our work borrows tools from causal inference to systematically assay this relationship. More specifically, we study the relationship between E and Y by measuring the treatment effect when intervening on their causal ancestors, i.e., on hyperparameters and inputs used to generate saliency-based Es or Ys. Our results suggest that the relationships between E and Y is far from ideal. In fact, the gap between 'ideal' case only increase in higher-performing models -- models that are likely to be deployed. Our work is a promising first step towards providing a quantitative measure of the relationship between E and Y, which could also inform the future development of methods for E with a quantitative metric.

Temporal causal representation learning methods assume that causal mechanisms switch instantaneously between discrete domains, yet real-world systems often exhibit continuous mechanism transitions. For example, a vehicle's dynamics evolve gradually through a turning maneuver, and human gait shifts smoothly from walking to running. We formalize this setting by modeling transitional mechanisms as convex combinations of finitely many atomic mechanisms, governed by time-varying mixing coefficients. Our theoretical contributions establish that both the latent causal variables and the continuous mixing trajectory are jointly identifiable. We further propose TRACE, a Mixture-of-Experts framework where each expert learns one atomic mechanism during training, enabling recovery of mechanism trajectories at test time. This formulation generalizes to intermediate mechanism states never observed during training. Experiments on synthetic and real-world data demonstrate that TRACE recovers mixing trajectories with up to 0.99 correlation, substantially outperforming discrete-switching baselines.

We describe recent research on the use of actual causality in the definition of responsibility scores as explanations for query answers in databases, and for outcomes from classification models in machine learning. In the case of databases, useful connections with database repairs are illustrated and exploited. Repairs are also used to give a quantitative measure of the consistency of a database. For classification models, the responsibility score is properly extended and illustrated. The efficient computation of Shap-score is also analyzed and discussed. The emphasis is placed on work done by the author and collaborators.

It has long been hypothesised that causal reasoning plays a fundamental role in robust and general intelligence. However, it is not known if agents must learn causal models in order to generalise to new domains, or if other inductive biases are sufficient. We answer this question, showing that any agent capable of satisfying a regret bound under a large set of distributional shifts must have learned an approximate causal model of the data generating process, which converges to the true causal model for optimal agents. We discuss the implications of this result for several research areas including transfer learning and causal inference.

Despite the progress of foundation models, knowledge-based reasoning remains a persistent challenge due to their limited capacity for knowledge recall and inference. Existing methods primarily focus on encouraging these models to plan and solve problems or extensively sample reasoning chains independently. However, these methods often overlook conceptual errors and inferential fallacies, inevitably leading to a series of notorious issues such as misleading conclusions, cognitive biases, and reduced decision quality. While explicit modeling of causality is argued to hold promise in addressing these issues, contemporary research efforts have thus far fallen short in achieving causality-based foundation models. Drawing inspiration from the orchestration of diverse specialized agents collaborating to tackle intricate tasks, we propose a framework named Causal-Consistency Chain-of-Thought (CaCo-CoT) that harnesses multi-agent collaboration to bolster the faithfulness and causality of foundation models, involving a set of reasoners and evaluators. These agents collaboratively work within a reasoning-and-consensus paradigm to improve faithfulness. The reasoners are tasked with generating reasoning chains for knowledge-intensive problems by mimicking human causal reasoning. Meanwhile, the evaluator scrutinizes the causal consistency of a reasoner's reasoning chain from a non-causal and a counterfactual perspective. Our framework demonstrates significant superiority over state-of-the-art methods through extensive and comprehensive evaluations across text-based and multi-modal knowledge reasoning tasks (e.g., science question answering and commonsense reasoning).

Causal reasoning and compositional reasoning are two core aspirations in generative AI. Measuring the extent of these behaviors requires principled evaluation methods. We explore a unified perspective that considers both behaviors simultaneously, termed compositional causal reasoning (CCR): the ability to infer how causal measures compose and, equivalently, how causal quantities propagate through graphs. We instantiate a framework for the systematic evaluation of CCR for the average treatment effect and the probability of necessity and sufficiency. As proof of concept, we demonstrate the design of CCR tasks for language models in the LLama, Phi, and GPT families. On a math word problem, our framework revealed a range of taxonomically distinct error patterns. Additionally, CCR errors increased with the complexity of causal paths for all models except o1.

A faithful and interpretable explanation of an AI model's behavior and internal structure is a high-level explanation that is human-intelligible but also consistent with the known, but often opaque low-level causal details of the model. We argue that the theory of causal abstraction provides the mathematical foundations for the desired kinds of model explanations. In causal abstraction analysis, we use interventions on model-internal states to rigorously assess whether an interpretable high-level causal model is a faithful description of an AI model. Our contributions in this area are: (1) We generalize causal abstraction to cyclic causal structures and typed high-level variables. (2) We show how multi-source interchange interventions can be used to conduct causal abstraction analyses. (3) We define a notion of approximate causal abstraction that allows us to assess the degree to which a high-level causal model is a causal abstraction of a lower-level one. (4) We prove constructive causal abstraction can be decomposed into three operations we refer to as marginalization, variable-merge, and value-merge. (5) We formalize the XAI methods of LIME, causal effect estimation, causal mediation analysis, iterated nullspace projection, and circuit-based explanations as special cases of causal abstraction analysis.

Recent advances in artificial intelligence reveal the limits of purely predictive systems and call for a shift toward causal and collaborative reasoning. Drawing inspiration from the revolution of Grothendieck in mathematics, we introduce the relativity of causal knowledge, which posits structural causal models (SCMs) are inherently imperfect, subjective representations embedded within networks of relationships. By leveraging category theory, we arrange SCMs into a functor category and show that their observational and interventional probability measures naturally form convex structures. This result allows us to encode non-intervened SCMs with convex spaces of probability measures. Next, using sheaf theory, we construct the network sheaf and cosheaf of causal knowledge. These structures enable the transfer of causal knowledge across the network while incorporating interventional consistency and the perspective of the subjects, ultimately leading to the formal, mathematical definition of relative causal knowledge.

Interpretability research on large language models (LLMs) has yielded important insights into model behaviour, yet recurring pitfalls persist: findings that do not generalise, and causal interpretations that outrun the evidence. Our position is that causal inference specifies what constitutes a valid mapping from model activations to invariant high-level structures, the data or assumptions needed to achieve it, and the inferences it can support. Specifically, Pearl's causal hierarchy clarifies what an interpretability study can justify. Observations establish associations between model behaviour and internal components. Interventions (e.g., ablations or activation patching) support claims how these edits affect a behavioural metric (e.g., average change in token probabilities) over a set of prompts. However, counterfactual claims -- i.e., asking what the model output would have been for the same prompt under an unobserved intervention -- remain largely unverifiable without controlled supervision. We show how causal representation learning (CRL) operationalises this hierarchy, specifying which variables are recoverable from activations and under what assumptions. Together, these motivate a diagnostic framework that helps practitioners select methods and evaluations matching claims to evidence such that findings generalise.

Causal reasoning in natural language requires identifying relevant variables, understanding their interactions, and reasoning about effects and interventions, often under noisy or ambiguous conditions. While large language models (LLMs) exhibit strong general reasoning abilities, they struggle to disentangle correlation from causation, particularly when observations are partially incorrect or irrelevant information is present. In this work, we introduce NoisyCausal, a new benchmark designed to evaluate causal reasoning under structured noise. Each instance is generated from a ground-truth causal graph and contextualized with a natural language scenario by injecting controllable forms of noise, such as irrelevant distractors, value perturbations, confounding, and partial observability. Moreover, we propose a modular reasoning framework that combines LLMs with explicit causal structure to address these challenges. Our method prompts the LLM to extract variables, construct a causal graph from context, and then reformulates the reasoning task as a structured prompt grounded in this graph. Rather than relying on statistical patterns alone, the LLM is guided by symbolic structure, enabling more interpretable and robust inference. Experimental results show that our method significantly outperforms standard prompting and reasoning baselines on NoisyCausal. Furthermore, it generalizes well to external benchmarks such as Cladder without task-specific tuning. Our findings highlight the importance of combining causal abstractions with language-driven reasoning to achieve faithful and robust causal understanding in LLMs.

Fairness for machine learning predictions is widely required in practice for legal, ethical, and societal reasons. Existing work typically focuses on settings without unobserved confounding, even though unobserved confounding can lead to severe violations of causal fairness and, thus, unfair predictions. In this work, we analyze the sensitivity of causal fairness to unobserved confounding. Our contributions are three-fold. First, we derive bounds for causal fairness metrics under different sources of unobserved confounding. This enables practitioners to examine the sensitivity of their machine learning models to unobserved confounding in fairness-critical applications. Second, we propose a novel neural framework for learning fair predictions, which allows us to offer worst-case guarantees of the extent to which causal fairness can be violated due to unobserved confounding. Third, we demonstrate the effectiveness of our framework in a series of experiments, including a real-world case study about predicting prison sentences. To the best of our knowledge, ours is the first work to study causal fairness under unobserved confounding. To this end, our work is of direct practical value as a refutation strategy to ensure the fairness of predictions in high-stakes applications.

We present a constraint-based algorithm for learning causal structures from observational time-series data, in the presence of latent confounders. We assume a discrete-time, stationary structural vector autoregressive process, with both temporal and contemporaneous causal relations. One may ask if temporal and contemporaneous relations should be treated differently. The presented algorithm gradually refines a causal graph by learning long-term temporal relations before short-term ones, where contemporaneous relations are learned last. This ordering of causal relations to be learnt leads to a reduction in the required number of statistical tests. We validate this reduction empirically and demonstrate that it leads to higher accuracy for synthetic data and more plausible causal graphs for real-world data compared to state-of-the-art algorithms.

Evaluation of counterfactual queries (e.g., "If A were true, would C have been true?") is important to fault diagnosis, planning, determination of liability, and policy analysis. We present a method of revaluating counterfactuals when the underlying causal model is represented by structural models - a nonlinear generalization of the simultaneous equations models commonly used in econometrics and social sciences. This new method provides a coherent means for evaluating policies involving the control of variables which, prior to enacting the policy were influenced by other variables in the system.

We introduce the concept of the self-referencing causal cycle (abbreviated RECALL) - a mechanism that enables large language models (LLMs) to bypass the limitations of unidirectional causality, which underlies a phenomenon known as the reversal curse. When an LLM is prompted with sequential data, it often fails to recall preceding context. For example, when we ask an LLM to recall the line preceding "O say does that star-spangled banner yet wave" in the U.S. National Anthem, it often fails to correctly return "Gave proof through the night that our flag was still there" - this is due to the reversal curse. It occurs because language models such as ChatGPT and Llama generate text based on preceding tokens, requiring facts to be learned and reproduced in a consistent token order. While the reversal curse is often viewed as a limitation, we offer evidence of an alternative view: it is not always an obstacle in practice. We find that RECALL is driven by what we designate as cycle tokens - sequences that connect different parts of the training data, enabling recall of preceding tokens from succeeding ones. Through rigorous probabilistic formalization and controlled experiments, we demonstrate how the cycles they induce influence a model's ability to reproduce information. To facilitate reproducibility, we provide our code and experimental details at https://anonymous.4open.science/r/remember-B0B8/.

When an agent can articulate why something works, we typically take this as evidence of genuine understanding. This presupposes that effective action and correct explanation covary, and that coherent explanation reliably signals both. I argue that this assumption fails for contemporary Large Language Models (LLMs). I introduce what I call the Bidirectional Coherence Paradox: competence and grounding not only dissociate but invert across epistemic conditions. In low-observability domains, LLMs often act successfully while misidentifying the mechanisms that produce their success. In high-observability domains, they frequently generate explanations that accurately track observable causal structure yet fail to translate those diagnoses into effective intervention. In both cases, explanatory coherence remains intact, obscuring the underlying dissociation. Drawing on experiments in compiler optimization and hyperparameter tuning, I develop the Epistemic Triangle, a model of how priors, signals, and domain knowledge interact under varying observability. The results suggest that neither behavioral success nor explanatory accuracy alone suffices for attributing understanding. I argue that evaluating artificial epistemic agents requires a tripartite framework -- coherence, grounding, and a proper basing relation linking explanation to action. The systematic separation of knowing-that and knowing-how in LLMs thus challenges assumptions inherited from both epistemology and current AI evaluation practice.

Extracting causal relationships from observed correlations is a growing area in probabilistic reasoning, originating with the seminal work of Pearl and others from the early 1990s. This paper develops a new, categorically oriented view based on a clear distinction between syntax (string diagrams) and semantics (stochastic matrices), connected via interpretations as structure-preserving functors. A key notion in the identification of causal effects is that of an intervention, whereby a variable is forcefully set to a particular value independent of any prior propensities. We represent the effect of such an intervention as an endofunctor which performs `string diagram surgery' within the syntactic category of string diagrams. This diagram surgery in turn yields a new, interventional distribution via the interpretation functor. While in general there is no way to compute interventional distributions purely from observed data, we show that this is possible in certain special cases using a calculational tool called comb disintegration. We demonstrate the use of this technique on a well-known toy example, where we predict the causal effect of smoking on cancer in the presence of a confounding common cause. After developing this specific example, we show this technique provides simple sufficient conditions for computing interventions which apply to a wide variety of situations considered in the causal inference literature.

Causal discovery aims to uncover the underlying causal relationships given data generated from a system. The goal, however, is not merely to predict causal edges given data, but also to be able to interpret and explain either observed or hypothesized phenomena, such as a particularly large causal effect. We consider this task of conditional causal discovery and cast it as a Bayesian inference problem, in which we target the posterior over causal graphs and parameters conditional on an event such as a causal-effect constraint. Unfortunately, this poses a computational challenge: existing approaches to Bayesian causal discovery struggle when the event has small posterior mass. To address this, we adapt rare-event estimation techniques to perform inference the joint graph-parameter space. Our method gradually drives a particle population toward the constrained region while maintaining samples that approximate the conditional posterior. Empirical evaluation on synthetic graphs validates the accuracy of our approach at small and large scales, and we show in a case study on the Sachs protein dataset how our method can be used to aid scientific exploration by providing pathway-level summaries.

Despite alarm over the reliance of machine learning systems on so-called spurious patterns, the term lacks coherent meaning in standard statistical frameworks. However, the language of causality offers clarity: spurious associations are due to confounding (e.g., a common cause), but not direct or indirect causal effects. In this paper, we focus on natural language processing, introducing methods and resources for training models less sensitive to spurious patterns. Given documents and their initial labels, we task humans with revising each document so that it (i) accords with a counterfactual target label; (ii) retains internal coherence; and (iii) avoids unnecessary changes. Interestingly, on sentiment analysis and natural language inference tasks, classifiers trained on original data fail on their counterfactually-revised counterparts and vice versa. Classifiers trained on combined datasets perform remarkably well, just shy of those specialized to either domain. While classifiers trained on either original or manipulated data alone are sensitive to spurious features (e.g., mentions of genre), models trained on the combined data are less sensitive to this signal. Both datasets are publicly available.

Causality testing, the act of determining cause and effect from measurements, is widely used in physics, climatology, neuroscience, econometrics and other disciplines. As a result, a large number of causality testing methods based on various principles have been developed. Causal relationships in complex systems are typically accompanied by entropic exchanges which are encoded in patterns of dynamical measurements. A data compression algorithm which can extract these encoded patterns could be used for inferring these relations. This motivates us to propose, for the first time, a generic causality testing framework based on data compression. The framework unifies existing causality testing methods and enables us to innovate a novel Compression-Complexity Causality measure. This measure is rigorously tested on simulated and real-world time series and is found to overcome the limitations of Granger Causality and Transfer Entropy, especially for noisy and non-synchronous measurements. Additionally, it gives insight on the `kind' of causal influence between input time series by the notions of positive and negative causality.

Understanding causality should be a core requirement of any attempt to build real impact through AI. Due to the inherent unobservability of counterfactuals, large randomised trials (RCTs) are the standard for causal inference. But large experiments are generically expensive, and randomisation carries its own costs, e.g. when suboptimal decisions are trialed. Recent work has proposed more sample-efficient alternatives to RCTs, but these are not adaptable to the downstream application for which the causal effect is sought. In this work, we develop a task-specific approach to experimental design and derive sampling strategies customised to particular downstream applications. Across a range of important tasks, real-world datasets, and sample sizes, our method outperforms other benchmarks, e.g. requiring an order-of-magnitude less data to match RCT performance on targeted marketing tasks.

Causal reasoning (CR) is a crucial aspect of intelligence, essential for problem-solving, decision-making, and understanding the world. While language models (LMs) can generate rationales for their outputs, their ability to reliably perform causal reasoning remains uncertain, often falling short in tasks requiring a deep understanding of causality. In this paper, we introduce CausalEval, a comprehensive review of research aimed at enhancing LMs for causal reasoning, coupled with an empirical evaluation of current models and methods. We categorize existing methods based on the role of LMs: either as reasoning engines or as helpers providing knowledge or data to traditional CR methods, followed by a detailed discussion of methodologies in each category. We then assess the performance of current LMs and various enhancement methods on a range of causal reasoning tasks, providing key findings and in-depth analysis. Finally, we present insights from current studies and highlight promising directions for future research. We aim for this work to serve as a comprehensive resource, fostering further advancements in causal reasoning with LMs.

We introduce CausaLab, a scalable environment for evaluating interactive causal discovery by LLM agents. Unlike prior evaluations, CausaLab evaluates both whether an agent can solve a problem using causal evidence and whether its answer is grounded in a faithful recovered causal mechanism. Each episode places an agent in a synthetic laboratory: it receives prior measurement records, intervenes on a manipulator crystal, and predicts the resonance frequency of a held-out reactor crystal governed by the same mechanism. The hidden data-generating process is a randomly sampled structural causal model (SCM), so success requires recovering both a causal graph and structural equations rather than recalling prior knowledge. Experiments show a persistent gap between prediction and mechanism recovery: in the purely observational 6-node setting, GPT-5.2-high reaches 92% task accuracy but only 0.471 all-edge F_1. Mixed observation-intervention strategies improve structural fidelity, while pure intervention remains difficult even for strong agents. We identify premature stopping as a major weakness and show that consistency verification mitigates it. CausaLab therefore separates predictive success from causal understanding and exposes current LLM agents' limits as experimental causal reasoners.

Actual causality (AC), a fundamental aspect of causal reasoning (CR), is responsible for attribution and responsibility assignment in real-world scenarios. However, existing LLM-based methods lack grounding in formal AC theory, resulting in limited interpretability. Therefore, we propose AC-Reason, a semi-formal reasoning framework that identifies causally relevant events within an AC scenario, infers the values of their formal causal factors (e.g., sufficiency, necessity, and normality), and answers AC queries via a theory-guided algorithm with explanations. While AC-Reason does not explicitly construct a causal graph, it operates over variables in the underlying causal structure to support principled reasoning. To enable comprehensive evaluation, we introduce AC-Bench, a new benchmark built upon and substantially extending Big-Bench Hard Causal Judgment (BBH-CJ). AC-Bench comprises ~1K carefully annotated samples, each with detailed reasoning steps and focuses solely on actual causation. The case study shows that synthesized samples in AC-Bench present greater challenges for LLMs. Extensive experiments on BBH-CJ and AC-Bench show that AC-Reason consistently improves LLM performance over baselines. On BBH-CJ, all tested LLMs surpass the average human rater accuracy of 69.60%, with GPT-4 + AC-Reason achieving 75.04%. On AC-Bench, GPT-4 + AC-Reason again achieves the highest accuracy of 71.82%. AC-Bench further enables fine-grained analysis of reasoning faithfulness, revealing that only Qwen-2.5-72B-Instruct, Claude-3.5-Sonnet, and GPT-4o exhibit faithful reasoning, whereas GPT-4 tends to exploit shortcuts. Finally, our ablation study proves that integrating AC theory into LLMs is highly effective, with the proposed algorithm contributing the most significant performance gains.

The causal capabilities of large language models (LLMs) are a matter of significant debate, with critical implications for the use of LLMs in societally impactful domains such as medicine, science, law, and policy. We conduct a "behavorial" study of LLMs to benchmark their capability in generating causal arguments. Across a wide range of tasks, we find that LLMs can generate text corresponding to correct causal arguments with high probability, surpassing the best-performing existing methods. Algorithms based on GPT-3.5 and 4 outperform existing algorithms on a pairwise causal discovery task (97%, 13 points gain), counterfactual reasoning task (92%, 20 points gain) and event causality (86% accuracy in determining necessary and sufficient causes in vignettes). We perform robustness checks across tasks and show that the capabilities cannot be explained by dataset memorization alone, especially since LLMs generalize to novel datasets that were created after the training cutoff date. That said, LLMs exhibit unpredictable failure modes, and we discuss the kinds of errors that may be improved and what are the fundamental limits of LLM-based answers. Overall, by operating on the text metadata, LLMs bring capabilities so far understood to be restricted to humans, such as using collected knowledge to generate causal graphs or identifying background causal context from natural language. As a result, LLMs may be used by human domain experts to save effort in setting up a causal analysis, one of the biggest impediments to the widespread adoption of causal methods. Given that LLMs ignore the actual data, our results also point to a fruitful research direction of developing algorithms that combine LLMs with existing causal techniques. Code and datasets are available at https://github.com/py-why/pywhy-llm.

Reliable causal inference is essential for making decisions in high-stakes areas like medicine, economics, and public policy. However, it remains unclear whether large language models (LLMs) can handle rigorous and trustworthy statistical causal inference. Current benchmarks usually involve simplified tasks. For example, these tasks might only ask LLMs to identify semantic causal relationships or draw conclusions directly from raw data. As a result, models may overlook important statistical pitfalls, such as Simpson's paradox or selection bias. This oversight limits the applicability of LLMs in the real world. To address these limitations, we propose CausalPitfalls, a comprehensive benchmark designed to rigorously evaluate the capability of LLMs in overcoming common causal inference pitfalls. Our benchmark features structured challenges across multiple difficulty levels, each paired with grading rubrics. This approach allows us to quantitatively measure both causal reasoning capabilities and the reliability of LLMs' responses. We evaluate models using two protocols: (1) direct prompting, which assesses intrinsic causal reasoning, and (2) code-assisted prompting, where models generate executable code for explicit statistical analysis. Additionally, we validate the effectiveness of this judge by comparing its scoring with assessments from human experts. Our results reveal significant limitations in current LLMs when performing statistical causal inference. The CausalPitfalls benchmark provides essential guidance and quantitative metrics to advance the development of trustworthy causal reasoning systems.

Recent work has shown promising results in causal discovery by leveraging interventional data with gradient-based methods, even when the intervened variables are unknown. However, previous work assumes that the correspondence between samples and interventions is known, which is often unrealistic. We envision a scenario with an extensive dataset sampled from multiple intervention distributions and one observation distribution, but where we do not know which distribution originated each sample and how the intervention affected the system, i.e., interventions are entirely latent. We propose a method based on neural networks and variational inference that addresses this scenario by framing it as learning a shared causal graph among an infinite mixture (under a Dirichlet process prior) of intervention structural causal models. Experiments with synthetic and real data show that our approach and its semi-supervised variant are able to discover causal relations in this challenging scenario.

Despite remarkable advances in the field, LLMs remain unreliable in distinguishing causation from correlation. Recent results from the Corr2Cause dataset benchmark reveal that state-of-the-art LLMs -- such as GPT-4 (F1 score: 29.08) -- only marginally outperform random baselines (Random Uniform, F1 score: 20.38), indicating limited capacity of generalization. To tackle this limitation, we propose a novel structured approach: rather than directly answering causal queries, we provide the model with the capability to structure its thinking by guiding the model to build a structured knowledge graph, systematically encoding the provided correlational premises, to answer the causal queries. This intermediate representation significantly enhances the model's causal capabilities. Experiments on the test subset of the Corr2Cause dataset benchmark with Qwen3-32B model (reasoning model) show substantial gains over standard direct prompting methods, improving F1 scores from 32.71 to 48.26 (over 47.5% relative increase), along with notable improvements in precision and recall. These results underscore the effectiveness of providing the model with the capability to structure its thinking and highlight its promising potential for broader generalization across diverse causal inference tasks.

The concept of causal abstraction got recently popularised to demystify the opaque decision-making processes of machine learning models; in short, a neural network can be abstracted as a higher-level algorithm if there exists a function which allows us to map between them. Notably, most interpretability papers implement these maps as linear functions, motivated by the linear representation hypothesis: the idea that features are encoded linearly in a model's representations. However, this linearity constraint is not required by the definition of causal abstraction. In this work, we critically examine the concept of causal abstraction by considering arbitrarily powerful alignment maps. In particular, we prove that under reasonable assumptions, any neural network can be mapped to any algorithm, rendering this unrestricted notion of causal abstraction trivial and uninformative. We complement these theoretical findings with empirical evidence, demonstrating that it is possible to perfectly map models to algorithms even when these models are incapable of solving the actual task; e.g., on an experiment using randomly initialised language models, our alignment maps reach 100% interchange-intervention accuracy on the indirect object identification task. This raises the non-linear representation dilemma: if we lift the linearity constraint imposed to alignment maps in causal abstraction analyses, we are left with no principled way to balance the inherent trade-off between these maps' complexity and accuracy. Together, these results suggest an answer to our title's question: causal abstraction is not enough for mechanistic interpretability, as it becomes vacuous without assumptions about how models encode information. Studying the connection between this information-encoding assumption and causal abstraction should lead to exciting future work.

With the rise of Large Language Models(LLMs), it has become crucial to understand their capabilities and limitations in deciphering and explaining the complex web of causal relationships that language entails. Current methods use either explicit or implicit causal reasoning, yet there is a strong need for a unified approach combining both to tackle a wide array of causal relationships more effectively. This research proposes a novel architecture called Context Aware Reasoning Enhancement with Counterfactual Analysis(CARE CA) framework to enhance causal reasoning and explainability. The proposed framework incorporates an explicit causal detection module with ConceptNet and counterfactual statements, as well as implicit causal detection through LLMs. Our framework goes one step further with a layer of counterfactual explanations to accentuate LLMs understanding of causality. The knowledge from ConceptNet enhances the performance of multiple causal reasoning tasks such as causal discovery, causal identification and counterfactual reasoning. The counterfactual sentences add explicit knowledge of the not caused by scenarios. By combining these powerful modules, our model aims to provide a deeper understanding of causal relationships, enabling enhanced interpretability. Evaluation of benchmark datasets shows improved performance across all metrics, such as accuracy, precision, recall, and F1 scores. We also introduce CausalNet, a new dataset accompanied by our code, to facilitate further research in this domain.

Faithful evaluation of language model capabilities is crucial for deriving actionable insights that can inform model development. However, rigorous causal evaluations in this domain face significant methodological challenges, including complex confounding effects and prohibitive computational costs associated with extensive retraining. To tackle these challenges, we propose a causal representation learning framework wherein observed benchmark performance is modeled as a linear transformation of a few latent capability factors. Crucially, these latent factors are identified as causally interrelated after appropriately controlling for the base model as a common confounder. Applying this approach to a comprehensive dataset encompassing over 1500 models evaluated across six benchmarks from the Open LLM Leaderboard, we identify a concise three-node linear causal structure that reliably explains the observed performance variations. Further interpretation of this causal structure provides substantial scientific insights beyond simple numerical rankings: specifically, we reveal a clear causal direction starting from general problem-solving capabilities, advancing through instruction-following proficiency, and culminating in mathematical reasoning ability. Our results underscore the essential role of carefully controlling base model variations during evaluation, a step critical to accurately uncovering the underlying causal relationships among latent model capabilities.

Estimating the causal effects of a spatially-varying intervention on a spatially-varying outcome may be subject to non-local confounding (NLC), a phenomenon that can bias estimates when the treatments and outcomes of a given unit are dictated in part by the covariates of other nearby units. In particular, NLC is a challenge for evaluating the effects of environmental policies and climate events on health-related outcomes such as air pollution exposure. This paper first formalizes NLC using the potential outcomes framework, providing a comparison with the related phenomenon of causal interference. Then, it proposes a broadly applicable framework, termed "weather2vec", that uses the theory of balancing scores to learn representations of non-local information into a scalar or vector defined for each observational unit, which is subsequently used to adjust for confounding in conjunction with causal inference methods. The framework is evaluated in a simulation study and two case studies on air pollution where the weather is an (inherently regional) known confounder.

We assess the ability of large language models (LLMs) to answer causal questions by analyzing their strengths and weaknesses against three types of causal question. We believe that current LLMs can answer causal questions with existing causal knowledge as combined domain experts. However, they are not yet able to provide satisfactory answers for discovering new knowledge or for high-stakes decision-making tasks with high precision. We discuss possible future directions and opportunities, such as enabling explicit and implicit causal modules as well as deep causal-aware LLMs. These will not only enable LLMs to answer many different types of causal questions for greater impact but also enable LLMs to be more trustworthy and efficient in general.

Causal representation learning aims to unveil latent high-level causal representations from observed low-level data. One of its primary tasks is to provide reliable assurance of identifying these latent causal models, known as identifiability. A recent breakthrough explores identifiability by leveraging the change of causal influences among latent causal variables across multiple environments liu2022identifying. However, this progress rests on the assumption that the causal relationships among latent causal variables adhere strictly to linear Gaussian models. In this paper, we extend the scope of latent causal models to involve nonlinear causal relationships, represented by polynomial models, and general noise distributions conforming to the exponential family. Additionally, we investigate the necessity of imposing changes on all causal parameters and present partial identifiability results when part of them remains unchanged. Further, we propose a novel empirical estimation method, grounded in our theoretical finding, that enables learning consistent latent causal representations. Our experimental results, obtained from both synthetic and real-world data, validate our theoretical contributions concerning identifiability and consistency.

Causal Inference plays an significant role in explaining the decisions taken by statistical models and artificial intelligence models. Of late, this field started attracting the attention of researchers and practitioners alike. This paper presents a comprehensive survey of 37 papers published during 1992-2023 and concerning the application of causal inference to banking, finance, and insurance. The papers are categorized according to the following families of domains: (i) Banking, (ii) Finance and its subdomains such as corporate finance, governance finance including financial risk and financial policy, financial economics, and Behavioral finance, and (iii) Insurance. Further, the paper covers the primary ingredients of causal inference namely, statistical methods such as Bayesian Causal Network, Granger Causality and jargon used thereof such as counterfactuals. The review also recommends some important directions for future research. In conclusion, we observed that the application of causal inference in the banking and insurance sectors is still in its infancy, and thus more research is possible to turn it into a viable method.

Most work interpreting reasoning models studies only a single chain-of-thought (CoT), yet these models define distributions over many possible CoTs. We argue that studying a single sample is inadequate for understanding causal influence and the underlying computation. Though fully specifying this distribution is intractable, it can be understood by sampling. We present case studies using resampling to investigate model decisions. First, when a model states a reason for its action, does that reason actually cause the action? In "agentic misalignment" scenarios, we resample specific sentences to measure their downstream effects. Self-preservation sentences have small causal impact, suggesting they do not meaningfully drive blackmail. Second, are artificial edits to CoT sufficient for steering reasoning? These are common in literature, yet take the model off-policy. Resampling and selecting a completion with the desired property is a principled on-policy alternative. We find off-policy interventions yield small and unstable effects compared to resampling in decision-making tasks. Third, how do we understand the effect of removing a reasoning step when the model may repeat it post-edit? We introduce a resilience metric that repeatedly resamples to prevent similar content from reappearing downstream. Critical planning statements resist removal but have large effects when eliminated. Fourth, since CoT is sometimes "unfaithful", can our methods teach us anything in these settings? Adapting causal mediation analysis, we find that hints that have a causal effect on the output without being explicitly mentioned exert a subtle and cumulative influence on the CoT that persists even if the hint is removed. Overall, studying distributions via resampling enables reliable causal analysis, clearer narratives of model reasoning, and principled CoT interventions.

We consider the problem of performing Bayesian inference in probabilistic models where observations are accompanied by uncertainty, referred to as "uncertain evidence." We explore how to interpret uncertain evidence, and by extension the importance of proper interpretation as it pertains to inference about latent variables. We consider a recently-proposed method "distributional evidence" as well as revisit two older methods: Jeffrey's rule and virtual evidence. We devise guidelines on how to account for uncertain evidence and we provide new insights, particularly regarding consistency. To showcase the impact of different interpretations of the same uncertain evidence, we carry out experiments in which one interpretation is defined as "correct." We then compare inference results from each different interpretation illustrating the importance of careful consideration of uncertain evidence.

Chain-of-thought emerges as a promising technique for eliciting reasoning capabilities from Large Language Models (LLMs). However, it does not always improve task performance or accurately represent reasoning processes, leaving unresolved questions about its usage. In this paper, we diagnose the underlying mechanism by comparing the reasoning process of LLMs with humans, using causal analysis to understand the relationships between the problem instruction, reasoning, and the answer in LLMs. Our empirical study reveals that LLMs often deviate from the ideal causal chain, resulting in spurious correlations and potential consistency errors (inconsistent reasoning and answers). We also examine various factors influencing the causal structure, finding that in-context learning with examples strengthens it, while post-training techniques like supervised fine-tuning and reinforcement learning on human feedback weaken it. To our surprise, the causal structure cannot be strengthened by enlarging the model size only, urging research on new techniques. We hope that this preliminary study will shed light on understanding and improving the reasoning process in LLM.

Causal discovery, i.e., inferring underlying cause-effect relationships from observations of a scene or system, is an inherent mechanism in human cognition, but has been shown to be highly challenging to automate. The majority of approaches in the literature aiming for this task consider constrained scenarios with fully observed variables or data from stationary time-series. In this work we aim for causal discovery in a more general class of scenarios, scenes with non-stationary behavior over time. For our purposes we here regard a scene as a composition objects interacting with each other over time. Non-stationarity is modeled as stationarity conditioned on an underlying variable, a state, which can be of varying dimension, more or less hidden given observations of the scene, and also depend more or less directly on these observations. We propose a probabilistic deep learning approach called State-Dependent Causal Inference (SDCI) for causal discovery in such conditionally stationary time-series data. Results in two different synthetic scenarios show that this method is able to recover the underlying causal dependencies with high accuracy even in cases with hidden states.

Self-consistency assumes the most frequent answer among sampled reasoning traces is the most reliable, but this can fail in causal reasoning: samples often repeat the same confounding error, and votes fragment across multiple valid answers, letting an invalid answer win despite a valid minority trace. We introduce CALVER (Causal Axiom-Level VERification), a training-free symbolic verifier that scores structured traces against Pearl's causal criteria, including -separation, backdoor adjustment, and intervention, and selects the highest-scoring candidate without consulting a reference answer. On CLEAR find-one-valid queries that admit multiple graph-valid answers, CALVER reaches 42.1% where plurality, a reward model, an LLM judge, and model confidence remain near 30% on identical frozen pools. Scaling the judge to 72B does not close the gap. In an audited clean-core subset, 11 of 21 graph-valid CALVER selections differ from the benchmark's listed answer while still satisfying the requested predicate. The advantage widens with the sampling budget and reproduces across ten published Bayesian networks, a second model family, and settings where the model must build the graph from text. CALVER also improves thresholded average-treatment-effect decisions against exact ground truth, generalizes to logic under a truth-table checker, and scores each candidate in milliseconds on CPU. CALVER needs only a causal structure, supplied outright or built from the text; wherever that holds, selection can aggregate via causal validity.

We argue that progress toward AGI is theory limited rather than data or scale limited. Building on the critical rationalism of Popper and Deutsch, we challenge the Platonic Representation Hypothesis. Observationally equivalent worlds can diverge under interventions, so observational adequacy alone cannot guarantee interventional competence. We begin by laying foundations, definitions of knowledge, learning, intelligence, counterfactual competence and AGI, and then analyze the limits of observational learning that motivate an error centric shift. We recast the problem as three questions about how explicit and implicit errors evolve under an agent's actions, which errors are unreachable within a fixed hypothesis space, and how conjecture and criticism expand that space. From these questions we propose Causal Mechanics, a mechanisms first program in which hypothesis space change is a first class operation and probabilistic structure is used when useful rather than presumed. We advance structural principles that make error discovery and correction tractable, including a differential Locality and Autonomy Principle for modular interventions, a gauge invariant form of Independent Causal Mechanisms for separability, and the Compositional Autonomy Principle for analogy preservation, together with actionable diagnostics. The aim is a scaffold for systems that can convert unreachable errors into reachable ones and correct them.

We introduce a new paradigm for building large causal models (LCMs) that exploits the enormous potential latent in today's large language models (LLMs). We describe our ongoing experiments with an implemented system called DEMOCRITUS (Decentralized Extraction of Manifold Ontologies of Causal Relations Integrating Topos Universal Slices) aimed at building, organizing, and visualizing LCMs that span disparate domains extracted from carefully targeted textual queries to LLMs. DEMOCRITUS is methodologically distinct from traditional narrow domain and hypothesis centered causal inference that builds causal models from experiments that produce numerical data. A high-quality LLM is used to propose topics, generate causal questions, and extract plausible causal statements from a diverse range of domains. The technical challenge is then to take these isolated, fragmented, potentially ambiguous and possibly conflicting causal claims, and weave them into a coherent whole, converting them into relational causal triples and embedding them into a LCM. Addressing this technical challenge required inventing new categorical machine learning methods, which we can only briefly summarize in this paper, as it is focused more on the systems side of building DEMOCRITUS. We describe the implementation pipeline for DEMOCRITUS comprising of six modules, examine its computational cost profile to determine where the current bottlenecks in scaling the system to larger models. We describe the results of using DEMOCRITUS over a wide range of domains, spanning archaeology, biology, climate change, economics, medicine and technology. We discuss the limitations of the current DEMOCRITUS system, and outline directions for extending its capabilities.

Causal reasoning is a cornerstone of how humans interpret the world. To model and reason about causality, causal graphs offer a concise yet effective solution. Given the impressive advancements in language models, a crucial question arises: can they really understand causal graphs? To this end, we pioneer an investigation into language models' understanding of causal graphs. Specifically, we develop a framework to define causal graph understanding, by assessing language models' behaviors through four practical criteria derived from diverse disciplines (e.g., philosophy and psychology). We then develop CLEAR, a novel benchmark that defines three complexity levels and encompasses 20 causal graph-based tasks across these levels. Finally, based on our framework and benchmark, we conduct extensive experiments on six leading language models and summarize five empirical findings. Our results indicate that while language models demonstrate a preliminary understanding of causal graphs, significant potential for improvement remains. Our project website is at https://github.com/OpenCausaLab/CLEAR.

Large language models (LLMs) exhibit logically inconsistent hallucinations that appear coherent yet violate reasoning principles, with recent research suggesting an inverse relationship between causal reasoning capabilities and such hallucinations. However, existing reasoning approaches in LLMs, such as Chain-of-Thought (CoT) and its graph-based variants, operate at the linguistic token level rather than modeling the underlying causal relationships between variables, lacking the ability to represent conditional independencies or satisfy causal identification assumptions. To bridge this gap, we introduce causal-DAG construction and reasoning (CDCR-SFT), a supervised fine-tuning framework that trains LLMs to explicitly construct variable-level directed acyclic graph (DAG) and then perform reasoning over it. Moreover, we present a dataset comprising 25,368 samples (CausalDR), where each sample includes an input question, explicit causal DAG, graph-based reasoning trace, and validated answer. Experiments on four LLMs across eight tasks show that CDCR-SFT improves the causal reasoning capability with the state-of-the-art 95.33% accuracy on CLADDER (surpassing human performance of 94.8% for the first time) and reduces the hallucination on HaluEval with 10% improvements. It demonstrates that explicit causal structure modeling in LLMs can effectively mitigate logical inconsistencies in LLM outputs. Code is available at https://github.com/MrLYG/CDCR-SFT.

The ability to perform causal reasoning is widely considered a core feature of intelligence. In this work, we investigate whether large language models (LLMs) can coherently reason about causality. Much of the existing work in natural language processing (NLP) focuses on evaluating commonsense causal reasoning in LLMs, thus failing to assess whether a model can perform causal inference in accordance with a set of well-defined formal rules. To address this, we propose a new NLP task, causal inference in natural language, inspired by the "causal inference engine" postulated by Judea Pearl et al. We compose a large dataset, CLadder, with 10K samples: based on a collection of causal graphs and queries (associational, interventional, and counterfactual), we obtain symbolic questions and ground-truth answers, through an oracle causal inference engine. These are then translated into natural language. We evaluate multiple LLMs on our dataset, and we introduce and evaluate a bespoke chain-of-thought prompting strategy, CausalCoT. We show that our task is highly challenging for LLMs, and we conduct an in-depth analysis to gain deeper insights into the causal reasoning abilities of LLMs. Our data is open-sourced at https://huggingface.co/datasets/causalNLP/cladder, and our code can be found at https://github.com/causalNLP/cladder.

We introduce the problem of active causal structure learning with advice. In the typical well-studied setting, the learning algorithm is given the essential graph for the observational distribution and is asked to recover the underlying causal directed acyclic graph (DAG) G^* while minimizing the number of interventions made. In our setting, we are additionally given side information about G^* as advice, e.g. a DAG G purported to be G^*. We ask whether the learning algorithm can benefit from the advice when it is close to being correct, while still having worst-case guarantees even when the advice is arbitrarily bad. Our work is in the same space as the growing body of research on algorithms with predictions. When the advice is a DAG G, we design an adaptive search algorithm to recover G^* whose intervention cost is at most O(max{1, log psi}) times the cost for verifying G^*; here, psi is a distance measure between G and G^* that is upper bounded by the number of variables n, and is exactly 0 when G=G^*. Our approximation factor matches the state-of-the-art for the advice-less setting.

We present a method for diagnosing interpretation in neural networks by identifying an input subspace where a proposed interpretation is highly faithful. Our method is particularly useful for causal-abstraction-style interpretability, where a high-level causal hypothesis is evaluated by interchange interventions. Rather than treating interchange intervention accuracy as a single global summary, we refine this framework by partitioning the input space into well-interpreted and under-interpreted regions according to pairwise interchange-intervention behavior. This turns causal abstraction from a purely global evaluation into a more diagnostic tool: it not only measures whether an interpretation works, but also reveals where it works, where it fails, and what distinguishes the two cases. This diagnostic view also provides practical heuristics for improving interpretations. By analyzing the structure of the well-interpreted and under-interpreted regions, we can identify missing distinctions in a high-level hypothesis, discover previously unmodeled intermediate variables, and combine complementary partial interpretations into a stronger one. We instantiate this idea as a simple four-step recipe and show that it yields informative error analyses across multiple causal abstraction settings. In a toy logic task, recursively applying the recipe recovers a high-level hypothesis from scratch. More broadly, our results suggest that partitioning the input space is a useful step toward more precise, constructive, and scalable mechanistic interpretability.

Causal representation learning (CRL) has garnered increasing interest from the causal inference and artificial intelligence communities due to its potential to disentangle complex data-generating mechanism into causally interpretable latent features by leveraging the heterogeneity of modern datasets. In this paper, we further contribute to the CRL literature, by focusing on the stylized linear structural causal model over latent features and assuming a linear mixing function that maps latent features to the observed data or measurements. Existing linear CRL methods often rely on stringent assumptions, such as access to single-node interventional data or restrictive distributional constraints on latent features and/or exogenous measurement noise. However, these prerequisites can be easy to violate in practice. In this work, we propose a novel linear CRL algorithm that, unlike existing methods, operates under weaker assumptions on environment heterogeneity and data-generating distributions while still recovering latent causal features up to an equivalence class. We further validate our new algorithm via synthetic experiments and an interpretability analysis of large language models, demonstrating both its superiority over competing methods in finite samples and its potential in integrating causality into understanding artificial intelligence. The source code is available at https://github.com/utulie/code_for_linear_crl_paper_creator.

We present a conditional text generation framework that posits sentential expressions of possible causes and effects. This framework depends on two novel resources we develop in the course of this work: a very large-scale collection of English sentences expressing causal patterns CausalBank; and a refinement over previous work on constructing large lexical causal knowledge graphs Cause Effect Graph. Further, we extend prior work in lexically-constrained decoding to support disjunctive positive constraints. Human assessment confirms that our approach gives high-quality and diverse outputs. Finally, we use CausalBank to perform continued training of an encoder supporting a recent state-of-the-art model for causal reasoning, leading to a 3-point improvement on the COPA challenge set, with no change in model architecture.

Socio-economic causal effects depend heavily on their specific institutional and environmental context. A single intervention can produce opposite results depending on regulatory or market factors, contexts that are often complex and only partially observed. This poses a significant challenge for large language models (LLMs) in decision-support roles: can they distinguish structural causal mechanisms from surface-level correlations when the context changes? To address this, we introduce EconCausal, a large-scale benchmark comprising 10,490 context-annotated causal triplets extracted from 2,595 high-quality empirical studies published in top-tier economics and finance journals. Through a rigorous four-stage pipeline combining multi-run consensus, context refinement, and multi-critic filtering, we ensure each claim is grounded in peer-reviewed research with explicit identification strategies. Our evaluation reveals critical limitations in current LLMs' context-dependent reasoning. While top models achieve approximately 88 percent accuracy in fixed, explicit contexts, performance drops sharply under context shifts, with a 32.6 percentage point decline, and falls to 37 percent when misinformation is introduced. Furthermore, models exhibit severe over-commitment in ambiguous cases and struggle to recognize null effects, achieving only 9.5 percent accuracy, exposing a fundamental gap between pattern matching and genuine causal reasoning. These findings underscore substantial risks for high-stakes economic decision-making, where the cost of misinterpreting causality is high. The dataset and benchmark are publicly available at https://github.com/econaikaist/econcausal-benchmark.

Vision-Language Models (VLMs) frequently "hallucinate" - generate plausible yet factually incorrect statements - posing a critical barrier to their trustworthy deployment. In this work, we propose a new paradigm for diagnosing hallucinations, recasting them from static output errors into dynamic pathologies of a model's computational cognition. Our framework is grounded in a normative principle of computational rationality, allowing us to model a VLM's generation as a dynamic cognitive trajectory. We design a suite of information-theoretic probes that project this trajectory onto an interpretable, low-dimensional Cognitive State Space. Our central discovery is a governing principle we term the geometric-information duality: a cognitive trajectory's geometric abnormality within this space is fundamentally equivalent to its high information-theoretic surprisal. Hallucination detection is counts as a geometric anomaly detection problem. Evaluated across diverse settings - from rigorous binary QA (POPE) and comprehensive reasoning (MME) to unconstrained open-ended captioning (MS-COCO) - our framework achieves state-of-the-art performance. Crucially, it operates with high efficiency under weak supervision and remains highly robust even when calibration data is heavily contaminated. This approach enables a causal attribution of failures, mapping observable errors to distinct pathological states: perceptual instability (measured by Perceptual Entropy), logical-causal failure (measured by Inferential Conflict), and decisional ambiguity (measured by Decision Entropy). Ultimately, this opens a path toward building AI systems whose reasoning is transparent, auditable, and diagnosable by design.

Human commonsense understanding of the physical and social world is organized around intuitive theories. These theories support making causal and moral judgments. When something bad happens, we naturally ask: who did what, and why? A rich literature in cognitive science has studied people's causal and moral intuitions. This work has revealed a number of factors that systematically influence people's judgments, such as the violation of norms and whether the harm is avoidable or inevitable. We collected a dataset of stories from 24 cognitive science papers and developed a system to annotate each story with the factors they investigated. Using this dataset, we test whether large language models (LLMs) make causal and moral judgments about text-based scenarios that align with those of human participants. On the aggregate level, alignment has improved with more recent LLMs. However, using statistical analyses, we find that LLMs weigh the different factors quite differently from human participants. These results show how curated, challenge datasets combined with insights from cognitive science can help us go beyond comparisons based merely on aggregate metrics: we uncover LLMs implicit tendencies and show to what extent these align with human intuitions.

Bayes' rule tells us how to invert a causal process in order to update our beliefs in light of new evidence. If the process is believed to have a complex compositional structure, we may ask whether composing the inversions of the component processes gives the same belief update as the inversion of the whole. We answer this question affirmatively, showing that the relevant compositional structure is precisely that of the lens pattern, and that we can think of Bayesian inversion as a particular instance of a state-dependent morphism in a corresponding fibred category. We define a general notion of (mixed) Bayesian lens, and discuss the (un)lawfulness of these lenses when their contravariant components are exact Bayesian inversions. We prove our main result both abstractly and concretely, for both discrete and continuous states, taking care to illustrate the common structures.

Recent advances in foundation models, especially in large multi-modal models and conversational agents, have ignited interest in the potential of generally capable embodied agents. Such agents will require the ability to perform new tasks in many different real-world environments. However, current foundation models fail to accurately model physical interactions and are therefore insufficient for Embodied AI. The study of causality lends itself to the construction of veridical world models, which are crucial for accurately predicting the outcomes of possible interactions. This paper focuses on the prospects of building foundation world models for the upcoming generation of embodied agents and presents a novel viewpoint on the significance of causality within these. We posit that integrating causal considerations is vital to facilitating meaningful physical interactions with the world. Finally, we demystify misconceptions about causality in this context and present our outlook for future research.

Causal inference has become an accepted analytic framework in settings where experimentation is impossible, which is frequently the case in sports analytics, particularly for studying in-game tactics. However, subtle differences in implementation can lead to important differences in interpretation. In this work, we provide a case study to demonstrate the utility and the nuance of these approaches. Motivated by a case study of crossing in soccer, two causal questions are considered: the overall impact of crossing on shot creation (Average Treatment Effect, ATE) and its impact in plays where crossing was actually attempted (Average Treatment Effect on the Treated, ATT). Using data from Shandong Taishan Luneng Football Club's 2017 season, we demonstrate how distinct matching strategies are used for different estimation targets - the ATE and ATT - though both aim to eliminate any spurious relationship between crossing and shot creation. Results suggest crossing yields a 1.6% additive increase in shot probability overall compared to not crossing (ATE), whereas the ATT is 5.0%. We discuss what insights can be gained from each estimand, and provide examples where one may be preferred over the alternative. Understanding and clearly framing analytics questions through a causal lens ensure rigorous analyses of complex questions.

Natural language is an appealing medium for explaining how large language models process and store information, but evaluating the faithfulness of such explanations is challenging. To help address this, we develop two modes of evaluation for natural language explanations that claim individual neurons represent a concept in a text input. In the observational mode, we evaluate claims that a neuron a activates on all and only input strings that refer to a concept picked out by the proposed explanation E. In the intervention mode, we construe E as a claim that the neuron a is a causal mediator of the concept denoted by E. We apply our framework to the GPT-4-generated explanations of GPT-2 XL neurons of Bills et al. (2023) and show that even the most confident explanations have high error rates and little to no causal efficacy. We close the paper by critically assessing whether natural language is a good choice for explanations and whether neurons are the best level of analysis.

Large Language Models (LLMs) have impressive capabilities, but are prone to outputting falsehoods. Recent work has developed techniques for inferring whether a LLM is telling the truth by training probes on the LLM's internal activations. However, this line of work is controversial, with some authors pointing out failures of these probes to generalize in basic ways, among other conceptual issues. In this work, we use high-quality datasets of simple true/false statements to study in detail the structure of LLM representations of truth, drawing on three lines of evidence: 1. Visualizations of LLM true/false statement representations, which reveal clear linear structure. 2. Transfer experiments in which probes trained on one dataset generalize to different datasets. 3. Causal evidence obtained by surgically intervening in a LLM's forward pass, causing it to treat false statements as true and vice versa. Overall, we present evidence that at sufficient scale, LLMs linearly represent the truth or falsehood of factual statements. We also show that simple difference-in-mean probes generalize as well as other probing techniques while identifying directions which are more causally implicated in model outputs.

Understanding how events in a scenario causally connect with each other is important for effectively modeling and reasoning about events. But event reasoning remains a difficult challenge, and despite recent advances, Large Language Models (LLMs) still struggle to accurately identify causal connections between events. This struggle leads to poor performance on deeper reasoning tasks like event forecasting and timeline understanding. To address this challenge, we investigate the generation of causal event graphs (e.g., A enables B) as a parallel mechanism to help LLMs explicitly represent causality during inference. This paper evaluates both how to generate correct graphs as well as how graphs can assist reasoning. We propose a collaborative approach to causal graph generation where we use LLMs to simulate experts that focus on specific semantic relations. The experts engage in multiple rounds of discussions which are then consolidated by a final expert. Then, to demonstrate the utility of causal graphs, we use them on multiple downstream applications, and also introduce a new explainable event prediction task that requires a causal chain of events in the explanation. These explanations are more informative and coherent than baseline generations. Finally, our overall approach not finetuned on any downstream task, achieves competitive results with state-of-the-art models on both forecasting and next event prediction tasks.

The origins of the colors of Trans-Neptunian Objects (TNOs) represent a crucial unresolved question, central to understanding the history of our Solar System. Recent observational surveys have revealed correlations between the eccentricity and inclination of TNOs and their colors. This has rekindled the long-standing debate on whether these colors reflect the conditions of TNO formation or their subsequent collisional evolution. In this study, we address this question with 98.7% certainty, using a model-agnostic, data-driven approach based on causal graphs. First, as a sanity check, we demonstrate how our model can replicate the currently accepted paradigms of TNOs' dynamical history, blindly and without any orbital modeling or physics-based assumptions. In fact, our causal model (with no knowledge of the existence of Neptune) predicts the existence of an unknown perturbing body, i.e., Neptune. We then show how this model predicts, with high certainty, that the color of TNOs is the root cause of their inclination distribution, rather than the other way around. This strongly suggests that the colors of TNOs reflect an underlying dynamical property, most likely their formation location. Moreover, our causal model excludes formation scenarios that invoke substantial color modification by subsequent irradiation. We therefore conclude that the colors of TNOs are predominantly primordial.

The "thinking-with-images" paradigm equips multimodal LLMs with active visual operations such as crop-and-zoom. However, models using these operations often achieve only marginal or negative gains over direct inference at substantially higher token cost. They may also repeatedly crop irrelevant regions and fail on questions that direct inference answers correctly. We ask whether the returned visual evidence causally affects the answer. To answer this question, we formulate visual tool-use as a causal graph that separates observation-mediated paths from action-induced shortcuts. We then audit it through interventions at the three levels: policy (comparing tool-use with direct inference), trajectory (corrupting all observations during rollout), and step (counterfactually replacing one individual observation under a fixed prefix). Our step-level estimand, Visual Evidence Gain, isolates the contribution of each returned observation. Across six representative models and five fine-grained perception benchmarks, we uncover policy miscalibration with two failure modes. In Calling Without Looking, returned observations have no causal effect on the answer. In Looking Without Planning, observations are informative but the call schedule is incoherent. A trajectory-level diagnostic decomposes the policy-level accuracy gain and shows that the gain is concentrated in a Calibrated minority. We term this discrepancy the illusion of visual tool-use: despite aggregate accuracy gains, visual tool-use is not causally effective across a broad range of rollouts. The code is available at https://github.com/OpenCausaLab/CauAudit.

The recent phenomenal success of language models has reinvigorated machine learning research, and large sequence models such as transformers are being applied to a variety of domains. One important problem class that has remained relatively elusive however is purposeful adaptive behavior. Currently there is a common perception that sequence models "lack the understanding of the cause and effect of their actions" leading them to draw incorrect inferences due to auto-suggestive delusions. In this report we explain where this mismatch originates, and show that it can be resolved by treating actions as causal interventions. Finally, we show that in supervised learning, one can teach a system to condition or intervene on data by training with factual and counterfactual error signals respectively.

We respond to the recent paper by Makelov et al. (2023), which reviews subspace interchange intervention methods like distributed alignment search (DAS; Geiger et al. 2023) and claims that these methods potentially cause "interpretability illusions". We first review Makelov et al. (2023)'s technical notion of what an "interpretability illusion" is, and then we show that even intuitive and desirable explanations can qualify as illusions in this sense. As a result, their method of discovering "illusions" can reject explanations they consider "non-illusory". We then argue that the illusions Makelov et al. (2023) see in practice are artifacts of their training and evaluation paradigms. We close by emphasizing that, though we disagree with their core characterization, Makelov et al. (2023)'s examples and discussion have undoubtedly pushed the field of interpretability forward.

Causal disentanglement seeks a representation of data involving latent variables that relate to one another via a causal model. A representation is identifiable if both the latent model and the transformation from latent to observed variables are unique. In this paper, we study observed variables that are a linear transformation of a linear latent causal model. Data from interventions are necessary for identifiability: if one latent variable is missing an intervention, we show that there exist distinct models that cannot be distinguished. Conversely, we show that a single intervention on each latent variable is sufficient for identifiability. Our proof uses a generalization of the RQ decomposition of a matrix that replaces the usual orthogonal and upper triangular conditions with analogues depending on a partial order on the rows of the matrix, with partial order determined by a latent causal model. We corroborate our theoretical results with a method for causal disentanglement that accurately recovers a latent causal model.

For text-based AI systems to interact in the real world, causal reasoning is an essential skill. Since interventional data is costly to generate, we study to what extent an agent can learn causal reasoning from passive data. Specifically, we consider an axiomatic training setup where an agent learns from multiple demonstrations of a causal axiom (or rule), rather than incorporating the axiom as an inductive bias or inferring it from data values. A key question is whether the agent would learn to generalize from the axiom demonstrations to new scenarios. For example, if a transformer model is trained on demonstrations of the causal transitivity axiom over small graphs, would it generalize to applying the transitivity axiom over large graphs? Our results, based on a novel axiomatic training scheme, indicate that such generalization is possible. We consider the task of inferring whether a variable causes another variable, given a causal graph structure. We find that a 67 million parameter transformer model, when trained on linear causal chains (along with some noisy variations) can generalize well to new kinds of graphs, including longer causal chains, causal chains with reversed order, and graphs with branching; even when it is not explicitly trained for such settings. Our model performs at par (or even better) than many larger language models such as GPT-4, Gemini Pro, and Phi-3. Overall, our axiomatic training framework provides a new paradigm of learning causal reasoning from passive data that can be used to learn arbitrary axioms, as long as sufficient demonstrations can be generated.

Large amounts of training data are one of the major reasons for the high performance of state-of-the-art NLP models. But what exactly in the training data causes a model to make a certain prediction? We seek to answer this question by providing a language for describing how training data influences predictions, through a causal framework. Importantly, our framework bypasses the need to retrain expensive models and allows us to estimate causal effects based on observational data alone. Addressing the problem of extracting factual knowledge from pretrained language models (PLMs), we focus on simple data statistics such as co-occurrence counts and show that these statistics do influence the predictions of PLMs, suggesting that such models rely on shallow heuristics. Our causal framework and our results demonstrate the importance of studying datasets and the benefits of causality for understanding NLP models.

Fair machine learning aims to prevent discrimination against individuals or sub-populations based on sensitive attributes such as gender and race. In recent years, causal inference methods have been increasingly used in fair machine learning to measure unfairness by causal effects. However, current methods assume that the true causal graph is given, which is often not true in real-world applications. To address this limitation, this paper proposes a framework for achieving causal fairness based on the notion of interventions when the true causal graph is partially known. The proposed approach involves modeling fair prediction using a Partially Directed Acyclic Graph (PDAG), specifically, a class of causal DAGs that can be learned from observational data combined with domain knowledge. The PDAG is used to measure causal fairness, and a constrained optimization problem is formulated to balance between fairness and accuracy. Results on both simulated and real-world datasets demonstrate the effectiveness of this method.

In-context learning for tabular data sets strong predictive standards in observational settings; it however primarily relies on correlational structure, which becomes unreliable under distribution shift or intervention. While established methods to discover causal structure exist, they are often focused on structure identifiability and decoupled from the predictive architectures that could benefit from them. To bridge these perspectives, we study how to simultaneously infer and enforce causal structure in the form of topological variable orderings into tabular prediction. Unlike standard architectures, our model TabOrder uses causal order-constrained attention, basing predictions only on features that precede a target under a learned causal order. Similar to causal discovery methods, TabOrder learns the optimal variable ordering in an unsupervised manner through a likelihood-based objective. We justify this choice under standard functional model classes and also study how sample missingness, a common challenge in tabular data, interacts with causal direction identification. Empirically, we confirm that TabOrder recovers accurate variable orderings while addressing prediction and imputation tasks, as well as gives insight into real-world biological data under intervention.

Large Language Models (LLMs) have recently shown great promise in planning and reasoning applications. These tasks demand robust systems, which arguably require a causal understanding of the environment. While LLMs can acquire and reflect common sense causal knowledge from their pretraining data, this information is often incomplete, incorrect, or inapplicable to a specific environment. In contrast, causal representation learning (CRL) focuses on identifying the underlying causal structure within a given environment. We propose a framework that integrates CRLs with LLMs to enable causally-aware reasoning and planning. This framework learns a causal world model, with causal variables linked to natural language expressions. This mapping provides LLMs with a flexible interface to process and generate descriptions of actions and states in text form. Effectively, the causal world model acts as a simulator that the LLM can query and interact with. We evaluate the framework on causal inference and planning tasks across temporal scales and environmental complexities. Our experiments demonstrate the effectiveness of the approach, with the causally-aware method outperforming LLM-based reasoners, especially for longer planning horizons.

It is commonplace to encounter heterogeneous or nonstationary data, of which the underlying generating process changes across domains or over time. Such a distribution shift feature presents both challenges and opportunities for causal discovery. In this paper, we develop a framework for causal discovery from such data, called Constraint-based causal Discovery from heterogeneous/NOnstationary Data (CD-NOD), to find causal skeleton and directions and estimate the properties of mechanism changes. First, we propose an enhanced constraint-based procedure to detect variables whose local mechanisms change and recover the skeleton of the causal structure over observed variables. Second, we present a method to determine causal orientations by making use of independent changes in the data distribution implied by the underlying causal model, benefiting from information carried by changing distributions. After learning the causal structure, next, we investigate how to efficiently estimate the "driving force" of the nonstationarity of a causal mechanism. That is, we aim to extract from data a low-dimensional representation of changes. The proposed methods are nonparametric, with no hard restrictions on data distributions and causal mechanisms, and do not rely on window segmentation. Furthermore, we find that data heterogeneity benefits causal structure identification even with particular types of confounders. Finally, we show the connection between heterogeneity/nonstationarity and soft intervention in causal discovery. Experimental results on various synthetic and real-world data sets (task-fMRI and stock market data) are presented to demonstrate the efficacy of the proposed methods.

A hallmark of life on Earth is the ability of agents to exert causal power and be drivers of subsequent events. This is key to cognition at all scales. Causal emergence, measuring the degree to which an agent exerts unique predictive power on its future, is one consequence of causal power. Indeed, recent discoveries have shown that biological agents, even minimal ones, increase their causal emergence after learning new memories. However, there is a major knowledge gap regarding how causally emergent artificial agents are. We focused on Reinforcement Learning (RL) of neural-network agents across an array of environmental conditions, encompassing different algorithms, agent architectures, and six environments arranged on a complexity spectrum. For consistency, we computed the causal emergence of their latent-space representations over their lifetimes. We used the recently proposed ΦID to estimate causal emergence and tested how it related to learning performance. Our results suggested a Causally Emergent Alignment Hypothesis: successful agents exhibited causal emergence that was consistently predictive of final reward early in training and whose representational dynamics aligned with reward improvement in most tasks. This idea suggests that causal emergence may be a previously undisclosed axis of reorganization of neural representations in RL agents, with the potential to establish causal relationships and interventions that will lead to better RL agents. Our work also highlights the alignment between causal emergence and learning as another way biological and artificial creatures compare.

Causal graphs provide a high-level language for making mechanisms transparent. Recent work uses Large Language Models (LLMs) to recover causal graphs of external-world processes. Instead, in this paper, we use causal graphs to model LLM inference itself, providing stakeholders with a transparent view of how the model perceives and organizes high-level concepts to produce a prediction. We propose a four-phase method for constructing such graphs. Given a target LLM and a set of textual examples, our method discovers class-discriminative, human-interpretable concepts and maps each input to LLM-perceived concept states. We then introduce an MCMC-inspired counterfactual augmentation procedure that expands the sparse observational data through chains of counterfactuals. This enables stable causal discovery with σ-CG, yielding informative, interpretable graphs. We apply our method to three LLMs across disease diagnosis, sentiment analysis, and LLM-as-a-judge classification tasks. We evaluate the learned graphs for predictive fidelity and structural stability, and the MCMC-inspired augmentation for convergence and downstream utility. Our results show that the discovered causal graphs capture meaningful dependencies consistent with LLMs' reasoning. Together, this paper provides a foundation for concept-level explainability of LLMs.

Previous studies have found that PLM-based retrieval models exhibit a preference for LLM-generated content, assigning higher relevance scores to these documents even when their semantic quality is comparable to human-written ones. This phenomenon, known as source bias, threatens the sustainable development of the information access ecosystem. However, the underlying causes of source bias remain unexplored. In this paper, we explain the process of information retrieval with a causal graph and discover that PLM-based retrievers learn perplexity features for relevance estimation, causing source bias by ranking the documents with low perplexity higher. Theoretical analysis further reveals that the phenomenon stems from the positive correlation between the gradients of the loss functions in language modeling task and retrieval task. Based on the analysis, a causal-inspired inference-time debiasing method is proposed, called Causal Diagnosis and Correction (CDC). CDC first diagnoses the bias effect of the perplexity and then separates the bias effect from the overall estimated relevance score. Experimental results across three domains demonstrate the superior debiasing effectiveness of CDC, emphasizing the validity of our proposed explanatory framework. Source codes are available at https://github.com/WhyDwelledOnAi/Perplexity-Trap.

Large Language Models (LLMs) have shown state-of-the-art performance in a variety of tasks, including arithmetic and reasoning; however, to gauge the intellectual capabilities of LLMs, causal reasoning has become a reliable proxy for validating a general understanding of the mechanics and intricacies of the world similar to humans. Previous works in natural language processing (NLP) have either focused on open-ended causal reasoning via causal commonsense reasoning (CCR) or framed a symbolic representation-based question answering for theoretically backed-up analysis via a causal inference engine. The former adds an advantage of real-world grounding but lacks theoretically backed-up analysis/validation, whereas the latter is far from real-world grounding. In this work, we bridge this gap by proposing the COLD (Causal reasOning in cLosed Daily activities) framework, which is built upon human understanding of daily real-world activities to reason about the causal nature of events. We show that the proposed framework facilitates the creation of enormous causal queries (~ 9 million) and comes close to the mini-turing test, simulating causal reasoning to evaluate the understanding of a daily real-world task. We evaluate multiple LLMs on the created causal queries and find that causal reasoning is challenging even for activities trivial to humans. We further explore (the causal reasoning abilities of LLMs) using the backdoor criterion to determine the causal strength between events.

Despite the importance of causal reasoning, training LLMs to reason causally remains underexplored. Existing data efforts mostly focus on benchmarking LLMs on specific aspects of causality, making them less suitable for training generalizable causal reasoners. To address this, we propose UniCo, a data generation framework that both (1) addresses 18 causal query types across Pearl's Causal Ladder and (2) translates natively symbolic examples into code and natural language forms to simulate real-world use cases where causal terms are not explicitly specified. To ensure data quality, UniCo grounds answers with exact causal inference and filters cases with reasoning shortcuts. Upon supervised finetuning with 66.6K UniCo-generated instances, Qwen3-4B, Qwen3-8B and Olmo-3-7B-Instruct achieve an average of 22.9% improvements across all 18 in-distribution query types, and 8.1% over state-of-the-art causal data generation frameworks on 7 established causal benchmarks outside the training distribution. More importantly, in real-world medical understanding, legal decision, and tabular reasoning, UniCo-trained models consistently display more faithful reasoning traces, outperforming the base models by an average of 20.2% in faithfulness metrics. These suggest that causality-centered training not only strengthens causal reasoning, but also equips LLMs with a causal mindset in general reasoning tasks.

Answering counterfactual queries has many important applications such as knowledge discovery and explainability, but is challenging when causal variables are unobserved and we only see a projection onto an observation space, for instance, image pixels. One approach is to recover the latent Structural Causal Model (SCM), but this typically needs unrealistic assumptions, such as linearity of the causal mechanisms. Another approach is to use na\"ive ML approximations, such as generative models, to generate counterfactual samples; however, these lack guarantees of accuracy. In this work, we strive to strike a balance between practicality and theoretical guarantees by focusing on a specific type of causal query called domain counterfactuals, which hypothesizes what a sample would have looked like if it had been generated in a different domain (or environment). Concretely, by only assuming invertibility, sparse domain interventions and access to observational data from different domains, we aim to improve domain counterfactual estimation both theoretically and practically with less restrictive assumptions. We define domain counterfactually equivalent models and prove necessary and sufficient properties for equivalent models that provide a tight characterization of the domain counterfactual equivalence classes. Building upon this result, we prove that every equivalence class contains a model where all intervened variables are at the end when topologically sorted by the causal DAG. This surprising result suggests that a model design that only allows intervention in the last k latent variables may improve model estimation for counterfactuals. We then test this model design on extensive simulated and image-based experiments which show the sparse canonical model indeed improves counterfactual estimation over baseline non-sparse models.

In a striking neuroscience study, the authors placed a dead salmon in an MRI scanner and showed it images of humans in social situations. Astonishingly, standard analyses of the time reported brain regions predictive of social emotions. The explanation, of course, was not supernatural cognition but a cautionary tale about misapplied statistical inference. In AI interpretability, reports of similar ''dead salmon'' artifacts abound: feature attribution, probing, sparse auto-encoding, and even causal analyses can produce plausible-looking explanations for randomly initialized neural networks. In this work, we examine this phenomenon and argue for a pragmatic statistical-causal reframing: explanations of computational systems should be treated as parameters of a (statistical) model, inferred from computational traces. This perspective goes beyond simply measuring statistical variability of explanations due to finite sampling of input data; interpretability methods become statistical estimators, and findings should be tested against explicit and meaningful alternative computational hypotheses, with uncertainty quantified with respect to the postulated statistical model. It also highlights important theoretical issues, such as the identifiability of common interpretability queries, which we argue is critical to understand the field's susceptibility to false discoveries, poor generalizability, and high variance. More broadly, situating interpretability within the standard toolkit of statistical inference opens promising avenues for future work aimed at turning AI interpretability into a pragmatic and rigorous science.

Ideas from causal set theory lead to a fluctuating, time dependent cosmological-constant of the right order of magnitude to match currently quoted "dark energy" values. Although such a term was predicted some time ago, a more detailed analysis of the resulting class of phenomenological models was begun only recently (based on numerical simulation of the cosmological equations with such a fluctuating term). In this paper we continue the investigation by studying the sensitivity of the scheme to some of the ad hoc choices made in setting it up.

Retrieval-Augmented Generation (RAG) has significantly enhanced large language models (LLMs) in knowledge-intensive tasks by incorporating external knowledge retrieval. However, existing RAG frameworks primarily rely on semantic similarity and correlation-driven retrieval, limiting their ability to distinguish true causal relationships from spurious associations. This results in responses that may be factually grounded but fail to establish cause-and-effect mechanisms, leading to incomplete or misleading insights. To address this issue, we introduce Causal Dynamic Feedback for Adaptive Retrieval-Augmented Generation (CDF-RAG), a framework designed to improve causal consistency, factual accuracy, and explainability in generative reasoning. CDF-RAG iteratively refines queries, retrieves structured causal graphs, and enables multi-hop causal reasoning across interconnected knowledge sources. Additionally, it validates responses against causal pathways, ensuring logically coherent and factually grounded outputs. We evaluate CDF-RAG on four diverse datasets, demonstrating its ability to improve response accuracy and causal correctness over existing RAG-based methods. Our code is publicly available at https://github.com/ elakhatibi/CDF-RAG.

Corruption studies, the primary tool for evaluating chain-of-thought (CoT) faithfulness, identify which chain positions are "computationally important" by measuring accuracy when steps are replaced with errors. We identify a systematic confound: for chains with explicit terminal answer statements, the dominant format in standard benchmarks, corruption studies detect where the answer text appears, not where computation occurs. A within-dataset format ablation provides the key evidence: on standard GSM8K chains ending with "the answer is X," removing only the answer statement, preserving all reasoning, collapses suffix sensitivity ~19x at 3B (N=300, p=0.022). Conflicting-answer experiments quantify the causal mechanism: at 7B, CC accuracy drops to near-zero (<=0.02) across five architecture families; the followed-wrong rate spans 0.63-1.00 at 3B-7B and attenuates at larger scales (0.300 at Phi-4-14B, ~0.01 at 32B). A within-stable 7B replication (9.3x attenuation, N=76, p=7.8e-3; Qwen3-8B N=299, p=0.004) provides converging evidence, and the pattern replicates on MATH (DeepSeek-R1-7B: 10.9x suffix-survival recovery). On chains without answer suffixes the same protocol identifies the prefix as load-bearing (Delta=-0.77, p<10^-12). Generation-time probes confirm a dissociation: the answer is not early-determined during generation (early commitment <5%), yet at consumption time model outputs systematically follow the explicit answer text. The format-determination effect persists through 14B (8.5x ratio, p=0.001) and converges toward zero at 32B. We propose a three-prerequisite protocol (question-only control, format characterization, all-position sweep) as a minimum standard for corruption-based faithfulness studies.

In this paper, we describe our shared task submissions for Subtask 2 in CASE-2022, Event Causality Identification with Casual News Corpus. The challenge focused on the automatic detection of all cause-effect-signal spans present in the sentence from news-media. We detect cause-effect-signal spans in a sentence using T5 -- a pre-trained autoregressive language model. We iteratively identify all cause-effect-signal span triplets, always conditioning the prediction of the next triplet on the previously predicted ones. To predict the triplet itself, we consider different causal relationships such as causerightarroweffectrightarrowsignal. Each triplet component is generated via a language model conditioned on the sentence, the previous parts of the current triplet, and previously predicted triplets. Despite training on an extremely small dataset of 160 samples, our approach achieved competitive performance, being placed second in the competition. Furthermore, we show that assuming either causerightarroweffect or effectrightarrowcause order achieves similar results.

While interpretability research has shed light on some internal algorithms utilized by transformer-based LLMs, reasoning in natural language, with its deep contextuality and ambiguity, defies easy categorization. As a result, formulating clear and motivating questions for circuit analysis that rely on well-defined in-domain and out-of-domain examples required for causal interventions is challenging. Although significant work has investigated circuits for specific tasks, such as indirect object identification (IOI), deciphering natural language reasoning through circuits remains difficult due to its inherent complexity. In this work, we take initial steps to characterize causal reasoning in LLMs by analyzing clear-cut cause-and-effect sentences like "I opened an umbrella because it started raining," where causal interventions may be possible through carefully crafted scenarios using GPT-2 small. Our findings indicate that causal syntax is localized within the first 2-3 layers, while certain heads in later layers exhibit heightened sensitivity to nonsensical variations of causal sentences. This suggests that models may infer reasoning by (1) detecting syntactic cues and (2) isolating distinct heads in the final layers that focus on semantic relationships.

We formalize constraint-based structure learning of the "true" causal graph from observed data when unobserved variables are also existent. We provide conditions for a "natural" family of constraint-based structure-learning algorithms that output graphs that are Markov equivalent to the causal graph. Under the faithfulness assumption, this natural family contains all exact structure-learning algorithms. We also provide a set of assumptions, under which any natural structure-learning algorithm outputs Markov equivalent graphs to the causal graph. These assumptions can be thought of as a relaxation of faithfulness, and most of them can be directly tested from (the underlying distribution) of the data, particularly when one focuses on structural causal models. We specialize the definitions and results for structural causal models.

There is a strong association between the quality of the writing in a resume for new labor market entrants and whether those entrants are ultimately hired. We show that this relationship is, at least partially, causal: a field experiment in an online labor market was conducted with nearly half a million jobseekers in which a treated group received algorithmic writing assistance. Treated jobseekers experienced an 8% increase in the probability of getting hired. Contrary to concerns that the assistance is taking away a valuable signal, we find no evidence that employers were less satisfied. We present a model in which better writing is not a signal of ability but helps employers ascertain ability, which rationalizes our findings.

In many sports, it is commonly believed that the home team has an advantage over the visiting team, known as the home field advantage. Yet its causal effect on team performance is largely unknown. In this paper, we propose a novel causal inference approach to study the causal effect of home field advantage in English Premier League. We develop a hierarchical causal model and show that both league level and team level causal effects are identifiable and can be conveniently estimated. We further develop an inference procedure for the proposed estimators and demonstrate its excellent numerical performance via simulation studies. We implement our method on the 2020-21 English Premier League data and assess the causal effect of home advantage on eleven summary statistics that measure the offensive and defensive performance and referee bias. We find that the home field advantage resides more heavily in offensive statistics than it does in defensive or referee statistics. We also find evidence that teams that had lower rankings retain a higher home field advantage.

Event Causality Identification (ECI) aims at determining whether there is a causal relation between two event mentions. Conventional prompt learning designs a prompt template to first predict an answer word and then maps it to the final decision. Unlike conventional prompts, we argue that predicting an answer word may not be a necessary prerequisite for the ECI task. Instead, we can first make a deterministic assumption on the existence of causal relation between two events and then evaluate its rationality to either accept or reject the assumption. The design motivation is to try the most utilization of the encyclopedia-like knowledge embedded in a pre-trained language model. In light of such considerations, we propose a deterministic assumption prompt learning model, called DAPrompt, for the ECI task. In particular, we design a simple deterministic assumption template concatenating with the input event pair, which includes two masks as predicted events' tokens. We use the probabilities of predicted events to evaluate the assumption rationality for the final event causality decision. Experiments on the EventStoryLine corpus and Causal-TimeBank corpus validate our design objective in terms of significant performance improvements over the state-of-the-art algorithms.

Correlation does not imply causation, but patterns of statistical association between variables can be exploited to infer a causal structure (even with purely observational data) with the burgeoning field of causal discovery. As a purely observational science, astrophysics has much to gain by exploiting these new methods. The supermassive black hole (SMBH)--galaxy interaction has long been constrained by observed scaling relations, that is low-scatter correlations between variables such as SMBH mass and the central velocity dispersion of stars in a host galaxy's bulge. This study, using advanced causal discovery techniques and an up-to-date dataset, reveals a causal link between galaxy properties and dynamically-measured SMBH masses. We apply a score-based Bayesian framework to compute the exact conditional probabilities of every causal structure that could possibly describe our galaxy sample. With the exact posterior distribution, we determine the most likely causal structures and notice a probable causal reversal when separating galaxies by morphology. In elliptical galaxies, bulge properties (built from major mergers) tend to influence SMBH growth, while in spiral galaxies, SMBHs are seen to affect host galaxy properties, potentially through feedback in gas-rich environments. For spiral galaxies, SMBHs progressively quench star formation, whereas in elliptical galaxies, quenching is complete, and the causal connection has reversed. Our findings support theoretical models of hierarchical assembly of galaxies and active galactic nuclei feedback regulating galaxy evolution. Our study suggests the potentiality for further exploration of causal links in astrophysical and cosmological scaling relations, as well as any other observational science.

A long-standing finding in the causal learning literature is that adults struggle to identify conjunctive causal rules, where an effect requires the simultaneous presence of multiple causes, while performing better in disjunctive settings. However, most demonstrations of this ``conjunctive handicap'' rely on passive observation paradigms with limited evidence, where learners have no control over evidence generation. This paper asks whether this bias persists when adults are granted agency through active exploration. Using a modified ``blicket detector'' task, adult participants freely intervened to identify causal objects under conjunctive or disjunctive rule structures. We show that active exploration substantially improves adults' conjunctive causal reasoning, although conjunctive rules still require more tests to infer than disjunctive rules. We further compare human performance to a range of large language models in the same setting. While some state-of-the-art models approach human-level performance on hypothesis inference accuracy, they often exhibit less efficient exploration strategies and similar conjunctive-disjunctive performance gaps.

Explainability methods for NLP systems encounter a version of the fundamental problem of causal inference: for a given ground-truth input text, we never truly observe the counterfactual texts necessary for isolating the causal effects of model representations on outputs. In response, many explainability methods make no use of counterfactual texts, assuming they will be unavailable. In this paper, we show that robust causal explainability methods can be created using approximate counterfactuals, which can be written by humans to approximate a specific counterfactual or simply sampled using metadata-guided heuristics. The core of our proposal is the Causal Proxy Model (CPM). A CPM explains a black-box model N because it is trained to have the same actual input/output behavior as N while creating neural representations that can be intervened upon to simulate the counterfactual input/output behavior of N. Furthermore, we show that the best CPM for N performs comparably to N in making factual predictions, which means that the CPM can simply replace N, leading to more explainable deployed models. Our code is available at https://github.com/frankaging/Causal-Proxy-Model.

In real-world scenarios, typical visual recognition systems could fail under two major causes, i.e., the misclassification between known classes and the excusable misbehavior on unknown-class images. To tackle these deficiencies, flexible visual recognition should dynamically predict multiple classes when they are unconfident between choices and reject making predictions when the input is entirely out of the training distribution. Two challenges emerge along with this novel task. First, prediction uncertainty should be separately quantified as confusion depicting inter-class uncertainties and ignorance identifying out-of-distribution samples. Second, both confusion and ignorance should be comparable between samples to enable effective decision-making. In this paper, we propose to model these two sources of uncertainty explicitly with the theory of Subjective Logic. Regarding recognition as an evidence-collecting process, confusion is then defined as conflicting evidence, while ignorance is the absence of evidence. By predicting Dirichlet concentration parameters for singletons, comprehensive subjective opinions, including confusion and ignorance, could be achieved via further evidence combinations. Through a series of experiments on synthetic data analysis, visual recognition, and open-set detection, we demonstrate the effectiveness of our methods in quantifying two sources of uncertainties and dealing with flexible recognition.

Out-of-distribution (OOD) prediction is often approached by restricting models to causal or invariant covariates, avoiding non-causal spurious associations that may be unstable across environments. Despite its theoretical appeal, this strategy frequently underperforms empirical risk minimization (ERM) in practice. We investigate the source of this gap and show that such failures naturally arise when only a subset of the true causes of the outcome is observed. In these settings, non-causal spurious covariates can serve as informative proxies for unobserved causes and substantially improve prediction, except under distribution shifts that break these proxy relationships. Consequently, the optimal set of predictive covariates is neither universal nor necessarily exhibits invariant relationships with the outcome across all environments, but instead depends on the specific type of shift encountered. Crucially, we observe that different covariate shifts induce distinct, observable signatures in the covariate distribution itself. Moreover, these signatures can be extracted from unlabeled data in the target OOD environment and used to assess when proxy covariates remain reliable and when they fail. Building on this observation, we propose an environment-adaptive covariate selection (EACS) algorithm that maps environment-level covariate summaries to environment-specific covariate sets, while allowing the incorporation of prior causal knowledge as constraints. Across simulations and applied datasets, EACS consistently outperforms static causal, invariant, and ERM-based predictors under diverse distribution shifts.

Interference is ubiquitous when conducting causal experiments over networks. Except for certain network structures, causal inference on the network in the presence of interference is difficult due to the entanglement between the treatment assignments and the interference levels. In this article, we conduct causal inference under interference on an observed, sparse but connected network, and we propose a novel design of experiments based on an independent set. Compared to conventional designs, the independent-set design focuses on an independent subset of data and controls their interference exposures through the assignments to the rest (auxiliary set). We provide a lower bound on the size of the independent set from a greedy algorithm , and justify the theoretical performance of estimators under the proposed design. Our approach is capable of estimating both spillover effects and treatment effects. We justify its superiority over conventional methods and illustrate the empirical performance through simulations.

The origins of the colours of Trans-Neptunian Objects (TNOs) represent a crucial unresolved question, central to understanding the history of our Solar System. Recent observational surveys revealed correlations between the eccentricity and inclination of TNOs, and their colours. This rekindled the long-standing debate on whether these colours reflect the conditions of TNO formation or their subsequent evolution. We address this question using a model-agnostic, data-driven approach that unanimously converges to a common causal graph from the analysis of two different datasets, each from two different conditional independence test methods. For evaluation, we demonstrate how our model is consistent with the currently-accepted paradigms of TNOs' dynamical histories, without involving any orbital modelling or physics-based assumptions. Our causal model (with no knowledge of the existence of Neptune) predicts the need for an unknown confounding variable, consistent with Neptune's effects. The model predicts that the colour of TNOs is the root cause of their inclination distribution, rather than the other way around. This strongly suggests that the colours of TNOs reflect an underlying dynamical property, most likely their formation location. Our model excludes formation scenarios that invoke substantial colour modification by subsequent evolution. We conclude that the colours of TNOs are predominantly primordial.

Energy markets exhibit complex causal relationships between weather patterns, generation technologies, and price formation, with regime changes occurring continuously rather than at discrete break points. Current approaches model electricity prices without explicit causal interpretation or counterfactual reasoning capabilities. We introduce Augmented Time Series Causal Models (ATSCM) for energy markets, extending counterfactual reasoning frameworks to multivariate temporal data with learned causal structure. Our approach models energy systems through interpretable factors (weather, generation mix, demand patterns), rich grid dynamics, and observable market variables. We integrate neural causal discovery to learn time-varying causal graphs without requiring ground truth DAGs. Applied to real-world electricity price data, ATSCM enables novel counterfactual queries such as "What would prices be under different renewable generation scenarios?".

Large language models (LLMs) increasingly act as integrated data-science agents, combining abstract reasoning with advanced tool use. Yet the relevant benchmark landscape largely divides into symbolic causal reasoning benchmarks without realistic data analysis or data analysis benchmarks without a principled causal data-generating structure. Furthermore, existing causal evaluation datasets are often restricted to curated examples from existing sources, with diversity coming from limited templatized variations rather than from systematic generation of novel synthetic causal structures. We introduce CausalDS, a benchmark for evaluating causal reasoning in agentic data-science workflows. Each benchmark instance is a scene consisting of a sampled structural causal model (SCM) with generated observational data and an accompanying synthetic natural-language story grounded in a realistic domain. We optionally ground the composition of the benchmark components in empirical distributions obtained from real-world datasets, thus retaining empirical structure while reducing the "causal parrot" risk through completely synthetic generation. From each scene, we then derive tasks spanning all three of Pearl's rungs, with typical data-science prediction tasks appearing as Rung 1. Most tasks include a data science coding component, where the model typically needs to use several tools to arrive at the final answer due to the frequent presence of imperfect observations, which are generated by an observation model. Additionally, recognizing when a question admits no warranted answer and abstaining is treated as a first-class scored outcome. The benchmark thus jointly evaluates symbolic causal reasoning, data science, uncertainty quantification, abstention, and tool use/coding.

Humans can look at a static scene and instantly predict what happens next -- will moving this object cause a collision? We call this ability Causal Spatial Reasoning. However, current multimodal large language models (MLLMs) cannot do this, as they remain largely restricted to static spatial perception, struggling to answer "what-if" questions in a 3D scene. We introduce CausalSpatial, a diagnostic benchmark evaluating whether models can anticipate consequences of object motions across four tasks: Collision, Compatibility, Occlusion, and Trajectory. Results expose a severe gap: humans score 84% while GPT-5 achieves only 54%. Why do MLLMs fail? Our analysis uncovers a fundamental deficiency: models over-rely on textual chain-of-thought reasoning that drifts from visual evidence, producing fluent but spatially ungrounded hallucinations. To address this, we propose the Causal Object World model (COW), a framework that externalizes the simulation process by generating videos of hypothetical dynamics. With explicit visual cues of causality, COW enables models to ground their reasoning in physical reality rather than linguistic priors. We make the dataset and code publicly available here: https://github.com/CausalSpatial/CausalSpatial

Contextual causal reasoning is a critical yet challenging capability for Large Language Models (LLMs). Existing benchmarks, however, often evaluate this skill in fragmented settings, failing to ensure context consistency or cover the full causal hierarchy. To address this, we pioneer METER to systematically benchmark LLMs across all three levels of the causal ladder under a unified context setting. Our extensive evaluation of various LLMs reveals a significant decline in proficiency as tasks ascend the causal hierarchy. To diagnose this degradation, we conduct a deep mechanistic analysis via both error pattern identification and internal information flow tracing. Our analysis reveals two primary failure modes: (1) LLMs are susceptible to distraction by causally irrelevant but factually correct information at lower level of causality; and (2) as tasks ascend the causal hierarchy, faithfulness to the provided context degrades, leading to a reduced performance. We belive our work advances our understanding of the mechanisms behind LLM contextual causal reasoning and establishes a critical foundation for future research. Our code and dataset are available at https://github.com/SCUNLP/METER .

Causal reasoning, the ability to identify cause-and-effect relationship, is crucial in human thinking. Although large language models (LLMs) succeed in many NLP tasks, it is still challenging for them to conduct complex causal reasoning like abductive reasoning and counterfactual reasoning. Given the fact that programming code may express causal relations more often and explicitly with conditional statements like ``if``, we want to explore whether Code-LLMs acquire better causal reasoning abilities. Our experiments show that compared to text-only LLMs, Code-LLMs with code prompts are significantly better in causal reasoning. We further intervene on the prompts from different aspects, and discover that the programming structure is crucial in code prompt design, while Code-LLMs are robust towards format perturbations.

When a language model refuses to answer a prompt, it is unclear whether the correct answer is erased from its internal representations, or merely suppressed at the output layer. We investigate this mechanism using a controlled withhold setting, which yields perfectly matched answering and refusal trajectories for bidirectional activation patching. We uncover a causal asymmetry in intervention locality under matched causal interventions, which we term broken symmetry. Even when a model generates a clean refusal, the correct answer remains linearly recoverable from its hidden states. Furthermore, releasing this withheld answer is a highly local operation, requiring only a single-position patch. Conversely, the reverse operation is not equally local: reimposing suppression requires broader interventions across multiple positions, and assembling a coherent refusal sequence is more difficult still. We further demonstrate that while an average answer-to-refusal displacement vector marks the geometric difference between these states, it fails to act as a reliable, reversible linear control toggle between behaviours. Taken together, our findings show that refusal does not function as a simple symmetric switch. For safety and auditing, this implies that probe recoverability can overestimate true behavioural control, and locating refusal-relevant directions does not reliably grant the ability to steer a model from answering to coherent refusal.