When Do Causal World Models Help Modular LLM Agents

arXiv cs.AIOctober 2, 2026en

arXiv:2610.00012v1 Announce Type: new Abstract: LLM agents increasingly act through modular systems, such as order, payment, inventory, and shipment services, where actions in one module change which transitions are valid in another. Standard world models usually fit observational traces, but this is not the quantity needed for intervention-time planning: a trace may show that payment precedes shipment without identifying whether payment authorizes shipment, inventory mediates the effect, or a hidden trigger explains both. We study this gap through FedCausalCompose, a causal world-model framework for modular LLM agents in which local actions provide intervention-response evidence for cross-m

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