Internalizing LLM Reasoning via Discovery and Replay of Latent Actions

Abstract: The internalization of chain-of-thought processes into hidden states has emerged as a highly efficient paradigm for scaling test-time compute. However, existing activation steering methods rely on static control vectors that fail to adapt to the non-stationary evolution of complex reasoning tasks. To address this limitation, we propose STIR (Self-Distilled Tools for Internal Reasoning), a framework that reformulates reasoning enhancement as a dynamic latent trajectory control problem. STIR introduces a synergistic three-stage pipeline: (1) differential intrinsic action induction harvests latent reasoning successes to crystallize steering primitives; (2) sparse control basis construction curates a compact, geometrically diverse tool library; and (3) value-modulated trajectory intervention dynamically injects context-specific impulses via anchor-based gating. Extensive experiments on six arithmetic and logical benchmarks across four representative models demonstrate that STIR improves average accuracy by 1.9% to 7.5% while reducing average token consumption by up to 35% compared to vanilla decoding. These findings demonstrate that the benefits of explicit chain-of-thought can be realized through dynamic latent trajectory control, internalizing the reasoning process to bypass the explicit generation while achieving superior fidelity. Our code is available at https://github.com/sznnzs/LLM-Latent-Action.