Counterfactual Simulation Training for Chain-of-Thought Faithfulness

Inspecting Chain-of-Thought reasoning is a common approach to understanding why an LLM produced its output. But well-known problems with CoT faithfulness severely limit what insights can be gained from this practice. In this paper, we introduce a training method called Counterfactual Simulation Training (CST), which aims to improve CoT faithfulness by rewarding CoTs that enable a simulator to accurately predict a model's outputs over counterfactual inputs. We apply CST in two settings: (1) CoT monitoring with cue-based counterfactuals, to detect when models rely on spurious features, reward hack, or are sycophantic, and (2) counterfactual simulation over generic model-based counterfactuals, to encourage models to produce more faithful, generalizable reasoning in the CoT. Experiments with models up to 235B parameters show that CST can substantially improve monitor accuracy on cue-based counterfactuals (by 35 accuracy points) as well as simulatability over generic counterfactuals (by 2 points). We further show that: (1) CST outperforms prompting baselines, (2) rewriting unfaithful CoTs with an LLM is 5x more efficient than RL alone, and (3) faithfulness improvements do not generalize to dissuading cues (as opposed to persuading cues). These results suggest that CST can improve CoT faithfulness in many settings, with promising applications for CoT monitoring.