TRACE: Business Rule-Grounded Reasoning Curriculum for Knowledge-Preserving Parametric Tool Retrieval in Enterprise LLMs

arXiv:2607.22639v2 Announce Type: replace Abstract: Parametric retrieval enables LLMs to retrieve tools implicitly by assigning each API a unique virtual token and training the model to generate it via constrained beam search. Toolsense shows that this regime has two critical drawbacks: it destroys parametric tool knowledge during training, and its beam-search decoding is too slow for real-time deployment. We introduce TRACE (Tool Retrieval via Augmented Chain-of-thought and Enterprise rules), a two-stage curriculum that resolves this dissociation. Stage 1 reuses the multi-format memorization

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