VAKRA: Evaluating Multi-Hop Reasoning Across APIs and Retrieval Under Tool-Use Policies
TL;DR
Trace analysis shows failures concentrate at language-mediated reasoning - entity disambiguation, cross-source grounding, rather than tool invocation mechanics, rather than tool invocation mechanics.
Abstract
Agents deployed in enterprise settings must reason across structured APIs and document collections, yet existing benchmarks evaluate these capabilities in isolation. We introduce VAKRA (e\textbf{V}aluating \textbf{A}PI and \textbf{K}nowledge \textbf{R}etrieval \textbf{A}gents), a benchmark of over $8{,}000$ executable APIs across $62$ domains with tasks spanning three settings of increasing difficulty: diverse API interaction styles, multi-hop reasoning over structured APIs, and multi-source reasoning with natural-language tool-use policy constraints. Correctness is verified by re-executing predicted tool calls against live APIs, accommodating multiple valid paths. Using a fixed ReAct harness to isolate model capabilities from agent architecture, we evaluate frontier and open-weight models and find that even the best model achieves only 70.4\% on single-hop endpoint-style tasks and drops to 50--51\% on compositional APIs; performance degrades by over 50\% as reasoning depth increases, and policy-constrained questions expose severe failures (as low as 2.4\% on unanswerable queries). Trace analysis shows failures concentrate at language-mediated reasoning - entity disambiguation, cross-source grounding, rather than tool invocation mechanics. Code is available https://github.com/IBM/VAKRA. Dataset is available https://huggingface.co/datasets/ibm-research/VAKRA