LLMs Struggle with Inductive and Abductive Reasoning

New research reveals limitations in how large language models approach complex problem-solving.

A recent study introduces InAbHyD, a new benchmark to evaluate large language models (LLMs) beyond deductive reasoning. The findings indicate that while LLMs handle simple scenarios, they struggle with complex world models and generating high-quality hypotheses, even with advanced techniques. This suggests LLMs do not inherently follow Occam's Razor.

Sarah Kline

By Sarah Kline

September 14, 2025

4 min read

LLMs Struggle with Inductive and Abductive Reasoning

Key Facts

  • The InAbHyD benchmark evaluates LLMs on inductive and abductive reasoning.
  • LLMs perform well in deductive reasoning but struggle with inductive and abductive tasks.
  • LLMs have difficulty with complex world models and generating high-quality hypotheses.
  • The study introduces a new metric for hypothesis quality based on Occam's Razor.
  • Reasoning-enhancing techniques like in-context learning and RLVR did not fully resolve the issues.

Why You Care

Ever wonder if artificial intelligence truly thinks like us? Can AI systems solve problems using common sense and intuition? A new study suggests that large language models (LLMs) might not be as smart as we think in certain crucial areas. This research challenges our understanding of AI’s reasoning capabilities. It directly impacts how you might use AI in your daily life. What if your AI assistant isn’t making the simplest, most logical assumptions?

What Actually Happened

Researchers Yunxin Sun and Abulhair Saparov have unveiled a new benchmark called InAbHyD, according to the announcement. This benchmark is specifically designed to test LLMs on inductive and abductive reasoning. These types of reasoning are crucial for solving real-world problems. Most previous work has focused almost exclusively on deductive reasoning, the research shows. Deductive reasoning involves drawing specific conclusions from general rules. Inductive reasoning, however, moves from specific observations to general conclusions. Abductive reasoning finds the simplest and most likely explanation for a set of observations. The team created InAbHyD as a programmable and synthetic dataset. Each reasoning example includes an incomplete world model and a set of observations, the paper states. The LLM’s task is to produce hypotheses to explain these observations. A new metric evaluates hypothesis quality based on Occam’s Razor. This principle suggests the simplest explanation is usually the best.

Why This Matters to You

This research highlights a significant gap in current LLM capabilities. While LLMs show progress in general AI tasks, their performance in complex reasoning is limited, the study finds. This directly affects how reliable AI might be for tasks requiring nuanced problem-solving. Imagine you’re using an AI tool for medical diagnosis or legal analysis. You would expect it to consider the simplest and most probable explanations. However, the current LLMs struggle with this, as mentioned in the release. The study indicates that LLMs do not consistently produce high-quality hypotheses. This holds true even with popular reasoning-enhancing techniques like in-context learning and RLVR. In-context learning allows models to learn from examples within the prompt. RLVR (Reinforcement Learning from Verbose Reasoning) uses feedback to improve reasoning chains. This limitation means your AI tools might overlook obvious solutions. It could also lead to overly complex or incorrect conclusions. How confident are you in an AI that doesn’t follow basic principles of logical simplicity?

Key Findings from the InAbHyD Benchmark:

Reasoning TypeLLM Performance
DeductiveStrong
InductiveSimple scenarios only
AbductiveSimple scenarios only
Complex World ModelsStruggles
Hypothesis QualityLow

Yunxin Sun noted that “LLMs can perform inductive and abductive reasoning in simple scenarios, but struggle with complex world models.” This quote emphasizes the current limitations. This means that while AI can handle straightforward tasks, its ability to reason like a human is still developing. Your reliance on AI for essential, complex decisions needs careful consideration.

The Surprising Finding

The most surprising revelation from this study is that large language models do not inherently follow Occam’s Razor. This principle suggests that among competing hypotheses, the one with the fewest assumptions should be selected. It’s a cornerstone of human problem-solving and scientific inquiry. The research shows that LLMs struggle to produce high-quality hypotheses. This means they often fail to identify the simplest and most plausible explanations for observations. For example, if an LLM is presented with symptoms, it might suggest a rare disease instead of a common cold. This is counterintuitive because we often assume AI would naturally gravitate towards efficiency and simplicity. The study challenges the common assumption that AI would intuitively adopt such fundamental logical principles. It suggests that complex reasoning capabilities are not simply an emergent property of larger models. Instead, they require specific training or architectural improvements.

What Happens Next

This research opens new avenues for AI creation. Future work will likely focus on improving LLMs’ inductive and abductive reasoning. We can expect new benchmarks and training methodologies within the next 12 to 18 months. Developers might integrate more explicit mechanisms for Occam’s Razor into AI architectures. For example, imagine an AI system designed to troubleshoot network issues. Currently, it might suggest overly complicated solutions. With improved reasoning, it could pinpoint the simplest cause, like a loose cable. For you, this means future AI tools could become more intuitive and reliable. The industry implications are significant. AI systems could become more effective in fields like scientific discovery, medical diagnostics, and legal reasoning. The team revealed that even techniques like in-context learning and RLVR did not fully address these challenges. Therefore, new approaches are necessary. The ultimate goal is to create AI that not only processes information but also reasons with human-like efficiency and common sense.

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