LLMs Generate Synthetic Data for API-Calling Agent Training

Seanie Lee, Sanjoy Chowdhury, Chao Jiang, Cheng-Yu Hsieh, Ting-Yao Hu, Alexander T Toshev, Oncel Tuzel, Raviteja Vemulapalli· July 21, 2026 View original

Summary

Researchers propose an environment-free method using LLMs as digital world models to generate high-quality synthetic data for training API-calling agents. This approach overcomes the bottleneck of needing fully implemented environments by simulating API responses and filtering trajectories.

Training large language model (LLM) agents that can effectively call APIs typically demands extensive, high-quality datasets of interaction trajectories. A significant hurdle in this process is the necessity for fully functional environments, complete with executable APIs and realistic backend databases, which are costly and time-consuming to develop. This paper introduces an innovative solution that bypasses this requirement by leveraging LLMs themselves as dynamic digital world models. The proposed method generates synthetic data without needing a pre-built environment. It starts with an LLM creating diverse tasks based solely on API specifications. A teacher agent then attempts to solve these tasks, while another LLM acts as a simulator, generating plausible API responses conditioned on the task context and the ongoing simulation history. Finally, an LLM judge filters these generated trajectories to ensure data quality. This approach has been successfully validated on complex benchmarks like AppWorld and OfficeBench, demonstrating that fine-tuning models on this synthetic data significantly boosts performance for API-calling agents, making scalable training feasible across various API ecosystems.

Why it matters

This breakthrough offers a scalable and cost-effective way to train sophisticated API-calling LLM agents, removing a major bottleneck in their development and deployment across diverse applications.

How to implement this in your domain

  1. 1Investigate integrating LLM-based synthetic data generation into your agent training pipelines to reduce reliance on costly real-world environments.
  2. 2Experiment with using LLMs as "digital world models" to simulate complex API interactions for agent development.
  3. 3Develop internal tools or leverage existing frameworks that can generate diverse tasks and simulate API responses based on specifications.
  4. 4Implement LLM-based judging mechanisms to ensure the quality and coherence of synthetically generated training data.

Who benefits

Software DevelopmentAI/ML DevelopmentEnterprise ITFinTechHealthcare

Key takeaways

  • LLMs can act as "digital world models" to generate synthetic data for API-calling agents.
  • This environment-free approach removes a major bottleneck in training data collection.
  • The method involves LLMs generating tasks, simulating API responses, and judging trajectory quality.
  • Synthetic data significantly improves performance for API-calling agents on complex benchmarks.

Original post by Seanie Lee, Sanjoy Chowdhury, Chao Jiang, Cheng-Yu Hsieh, Ting-Yao Hu, Alexander T Toshev, Oncel Tuzel, Raviteja Vemulapalli

"arXiv:2607.16900v1 Announce Type: new Abstract: Training API-calling large language model (LLM) agents demands massive amounts of high-quality trajectories. However, collecting such data at scale typically requires fully implemented environments with executable APIs and realistic…"

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Originally posted by Seanie Lee, Sanjoy Chowdhury, Chao Jiang, Cheng-Yu Hsieh, Ting-Yao Hu, Alexander T Toshev, Oncel Tuzel, Raviteja Vemulapalli on X · view source

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