@inproceedings{chen-etal-2026-llm-agents-fail,
title = "Why Do {LLM} Agents Fail in Exploring New Environments? A World-Modeling Perspective",
author = "Chen, Shiqi and
Zhu, Tongyao and
Wang, Zian and
Zhang, Jinghan and
Wang, Kangrui and
Zhou, Ruochen and
Gao, Siyang and
Xiao, Teng and
Teh, Yee Whye and
He, Junxian and
Li, Manling",
editor = "Lee, Hung-Yi and
Dev, Sunipa and
Li, Jessy and
Elliott, Desmond",
booktitle = "Findings of the {A}ssociation for {C}omputational {L}inguistics: {EMNLP} 2026",
month = oct,
year = "2026",
address = "Budapest, Hungary",
publisher = "Association for Computational Linguistics",
url = "https://aclanthology.org/2026.findings-emnlp.1023/",
pages = "21612--21626",
ISBN = "979-8-89176-462-0",
abstract = "Large Language Models (LLMs) as agents often fail to improve in new environments. We identify and characterize a failure mode we call exploration collapse: under reinforcement learning (RL) in environments whose states are unfamiliar to the policy, Pass@k, the probability that at least one of k sampled trajectories succeeds, drops markedly over training even as Pass@1 edges up, revealing increasingly brittle exploration; environments closer to the pretraining distribution show no such decline. We trace this collapse to weak grounding in environment states and dynamics, and study a simple remedy: explicitly teaching the agent to estimate the current state and predict its transitions before optimizing for reward. We instantiate it as SPA, an explore-then-exploit recipe that cold-starts the policy with a Self-Experience supervised finetuning (SFT) stage, collecting the model{'}s own interaction trajectories and supervising state and next-state prediction, and then runs standard RL. The resulting world model serves as a grounded initialization for RL rather than an inference-time planner. Across unseen environments, SPA consistently and substantially improves over vanilla RL: for example, it raises the Sokoban success rate from 25.6{\%} to 59.8{\%} on Qwen2.5-1.5B-Instruct, letting sub-3B models surpass a 20B baseline on these tasks. Controlled studies indicate that the gains track four factors: grounded state representations, explicit transition modeling, self-experience trajectories from a sufficiently strong exploration policy, and adequate coverage of transition data."
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<abstract>Large Language Models (LLMs) as agents often fail to improve in new environments. We identify and characterize a failure mode we call exploration collapse: under reinforcement learning (RL) in environments whose states are unfamiliar to the policy, Pass@k, the probability that at least one of k sampled trajectories succeeds, drops markedly over training even as Pass@1 edges up, revealing increasingly brittle exploration; environments closer to the pretraining distribution show no such decline. We trace this collapse to weak grounding in environment states and dynamics, and study a simple remedy: explicitly teaching the agent to estimate the current state and predict its transitions before optimizing for reward. We instantiate it as SPA, an explore-then-exploit recipe that cold-starts the policy with a Self-Experience supervised finetuning (SFT) stage, collecting the model’s own interaction trajectories and supervising state and next-state prediction, and then runs standard RL. The resulting world model serves as a grounded initialization for RL rather than an inference-time planner. Across unseen environments, SPA consistently and substantially improves over vanilla RL: for example, it raises the Sokoban success rate from 25.6% to 59.8% on Qwen2.5-1.5B-Instruct, letting sub-3B models surpass a 20B baseline on these tasks. Controlled studies indicate that the gains track four factors: grounded state representations, explicit transition modeling, self-experience trajectories from a sufficiently strong exploration policy, and adequate coverage of transition data.</abstract>
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%0 Conference Proceedings
%T Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective
%A Chen, Shiqi
%A Zhu, Tongyao
%A Wang, Zian
%A Zhang, Jinghan
%A Wang, Kangrui
%A Zhou, Ruochen
%A Gao, Siyang
%A Xiao, Teng
%A Teh, Yee Whye
%A He, Junxian
%A Li, Manling
%Y Lee, Hung-Yi
%Y Dev, Sunipa
%Y Li, Jessy
%Y Elliott, Desmond
%S Findings of the Association for Computational Linguistics: EMNLP 2026
%D 2026
%8 October
%I Association for Computational Linguistics
%C Budapest, Hungary
%@ 979-8-89176-462-0
%F chen-etal-2026-llm-agents-fail
%X Large Language Models (LLMs) as agents often fail to improve in new environments. We identify and characterize a failure mode we call exploration collapse: under reinforcement learning (RL) in environments whose states are unfamiliar to the policy, Pass@k, the probability that at least one of k sampled trajectories succeeds, drops markedly over training even as Pass@1 edges up, revealing increasingly brittle exploration; environments closer to the pretraining distribution show no such decline. We trace this collapse to weak grounding in environment states and dynamics, and study a simple remedy: explicitly teaching the agent to estimate the current state and predict its transitions before optimizing for reward. We instantiate it as SPA, an explore-then-exploit recipe that cold-starts the policy with a Self-Experience supervised finetuning (SFT) stage, collecting the model’s own interaction trajectories and supervising state and next-state prediction, and then runs standard RL. The resulting world model serves as a grounded initialization for RL rather than an inference-time planner. Across unseen environments, SPA consistently and substantially improves over vanilla RL: for example, it raises the Sokoban success rate from 25.6% to 59.8% on Qwen2.5-1.5B-Instruct, letting sub-3B models surpass a 20B baseline on these tasks. Controlled studies indicate that the gains track four factors: grounded state representations, explicit transition modeling, self-experience trajectories from a sufficiently strong exploration policy, and adequate coverage of transition data.
%U https://aclanthology.org/2026.findings-emnlp.1023/
%P 21612-21626
Markdown (Informal)
[Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective](https://aclanthology.org/2026.findings-emnlp.1023/) (Chen et al., Findings 2026)
ACL
- Shiqi Chen, Tongyao Zhu, Zian Wang, Jinghan Zhang, Kangrui Wang, Ruochen Zhou, Siyang Gao, Teng Xiao, Yee Whye Teh, Junxian He, and Manling Li. 2026. Why Do LLM Agents Fail in Exploring New Environments? A World-Modeling Perspective. In Findings of the Association for Computational Linguistics: EMNLP 2026, pages 21612–21626, Budapest, Hungary. Association for Computational Linguistics.