Modern large language models (LLMs) employ diverse logical inference mechanisms for reasoning, making the strategic optimization of these approaches critical for advancing their capabilities. This paper systematically investigate the **comparative dynamics** of inductive (System 1) versus abductive/deductive (System 2) inference in LLMs. We utilize a controlled analogical reasoning environment, varying modality (textual, visual, symbolic), difficulty, and task format (MCQ / free-text). Our analysis reveals System 2 pipelines generally excel, particularly in visual/symbolic modalities and harder tasks, while System 1 is competitive for textual and easier problems. Crucially, task format significantly influences their relative advantage, with System 1 sometimes outperforming System 2 in free-text rule-execution. These core findings generalize to broader in-context learning. Furthermore, we demonstrate that advanced System 2 strategies like hypothesis selection and iterative refinement can substantially scale LLM reasoning. This study offers foundational insights and actionable guidelines for strategically deploying logical inference to enhance LLM reasoning.

Inductive reasoning, a cornerstone of human cognition, enables generalization from limited data but hasn’t yet been fully achieved by large language models (LLMs). While modern LLMs excel at reasoning tasks, their ability to maintain stable and consistent rule abstraction under imperfect observations remains underexplored. To fill this gap, in this work, we introduce **Robust Rule Induction**, a task that evaluates LLMs’ capability in inferring rules from data that are fused with noisy examples. To address this task, we further propose Sample-steered Rule Refinement (SRR), a method enhancing reasoning stability via observation diversification and execution-guided feedback. Experiments across arithmetic, cryptography, and list functions reveal: (1) SRR outperforms other methods with minimal performance degradation under noise; (2) Despite slight accuracy variation, LLMs exhibit instability under noise (e.g., 0 accuracy change with only 70 consistent score);(3) Counterfactual task gaps highlight LLMs’ reliance on memorized patterns over genuine abstraction. Our findings challenge LLMs’ reasoning robustness, revealing susceptibility to hypothesis drift and pattern overfitting, while providing empirical evidence critical for developing human-like inductive systems.

The sequential process of conceptualization and instantiation is essential to generalizable commonsense reasoning as it allows the application of existing knowledge to unfamiliar scenarios. However, existing works tend to undervalue the step of instantiation and heavilyrely on pre-built concept taxonomies and human annotations to collect both types of knowledge, resulting in a lack of instantiated knowledge to complete reasoning, high cost, and limited scalability. To tackle these challenges, we introduce CANDLE (ConceptuAlizationand INstantiation Distillation from Large Language ModEls), a distillation framework that iteratively performs contextualized conceptualization and instantiation over commonsense knowledge bases by instructing large language models to generate both types of knowledge with critic filtering. By applying CANDLE to ATOMIC (Sap et al., 2019a), we construct a comprehensive knowledge base comprising six million conceptualizations and instantiated commonsense knowledge triples. Both types of knowledge are firmly rooted in the original ATOMIC dataset, and intrinsic evaluations demonstrate their exceptional quality and diversity. Empirical results indicate that distilling CANDLE on student models provides benefits across three downstream tasks. Our data and models are publicly available at https://github.com/HKUST-KnowComp/CANDLE.

Event Factuality Detection (EFD) task determines the factuality of textual events, i.e., classifying whether an event is a fact, possibility, or impossibility, which is essential for faithfully understanding and utilizing event knowledge. However, due to the lack of high-quality large-scale data, event factuality detection is under-explored in event understanding research, which limits the development of EFD community. To address these issues and provide faithful event understanding, we introduce MAVEN-FACT, a large-scale and high-quality EFD dataset based on the MAVEN dataset. MAVEN-FACT includes factuality annotations of 112,276 events, making it the largest EFD dataset. Extensive experiments demonstrate that MAVEN-FACT is challenging for both conventional fine-tuned models and large language models (LLMs). Thanks to the comprehensive annotations of event arguments and relations in MAVEN, MAVEN-FACT also supports some further analyses and we find that adopting event arguments and relations helps in event factuality detection for fine-tuned models but does not benefit LLMs. Furthermore, we preliminarily study an application case of event factuality detection and find it helps in mitigating event-related hallucination in LLMs. We will release our dataset and codes to facilitate further research on event factuality detection.