Mind Readers: Stevens Researchers Peek at How Large Language Models Encode Theory-of-Mind
Human brains are superior to LLMs in energy efficiency, but the models can become better at using their networks
Hoboken, N.J., November 7, 2025 — Imagine you’re watching a movie, in which a character puts a chocolate bar in a box, closes the box and leaves the room. Another person, also in the room, moves the bar from a box to a desk drawer. You, as an observer, know that the treat is now in the drawer, and you also know that when the first person returns, they will look for the treat in the box because they don’t know it has been moved.
You know that because as a human you have the cognitive capacity to infer and reason about the minds of other people — in this case the person’s lack of awareness regarding where the chocolate is. In scientific terms, this ability is described as Theory of Mind (ToM). This "mind-reading" ability allows us to predict and explain the behavior of others by considering their mental states.
We develop this capacity about the age of four, and our brains are really good at it. “For a human brain it’s a very easy task,” says Zhaozhuo Xu, Assistant Professor of Computer Science at the School of Engineering — it barely takes seconds to process. “And while doing so, our brains involve only a small subset of neurons, so it’s very energy efficient,” explains Denghui Zhang, Assistant Professor in Information Systems and Analytics at the School of Business.
Large language models or LLMs, which the researchers study, work differently. Although they were inspired by some concepts from neuroscience and cognitive science, they aren’t exact mimics of the human brain. LLMs were built on artificial neural networks that loosely resemble the organization of biological neurons, but the models learn from patterns in massive amounts of text and operate using mathematical functions.
That gives LLMs a definitive advantage over humans in processing loads of information rapidly. But when it comes to efficiency, particularly with simple things, LLMs lose to humans. Regardless of the complexity of the task, they must activate most of their neural network to produce the answer. So whether you’re asking an LLM to tell you what time it is or summarize Moby Dick, a whale of a novel, the LLM will engage its entire network, which is resource consuming and inefficient.
“When we, humans, evaluate a new task, we activate a very small part of our brain, but LLMs must activate pretty much all of its network to figure something new even if it’s fairly basic,” says Zhang. “LLMs must do all the computations and then select the one thing you need. So you do a lot of redundant computations, because you compute a lot of things you don't need. It’s very inefficient.”
Working together, Zhang and Xu formed a multidisciplinary collaboration to better understand how LLMs operate and how their efficiency in social reasoning can be improved.
They found that LLMs use a small, specialized set of internal connections to handle social reasoning. They also found that LLM’s social reasoning abilities depend strongly on how the model represents word positions, especially through a method called rotary positional encoding (RoPE). These special connections influence how the model pays attention to different words and ideas, effectively guiding where its "focus" goes during reasoning about people’s thoughts.
“In simple terms, our results suggest that LLMs use built-in patterns for tracking positions and relationships between words to form internal “beliefs” and make social inferences,” Zhang says. The two collaborators outlined their findings in the study titled How large language models encode theory-of-mind: a study on sparse parameter patterns, published in Nature Partner Journal on Artificial Intelligence on August 28, 2025.
Now that researchers better understand how LLM’s form their “beliefs,” they think it may be possible to make the models more efficient. “We all know that AI is energy expensive, so if we want to make it scalable, we have to change how it operates,” says Xu. “Our human brain is very energy efficient, so we hope this research brings us back to thinking how we can make LLMs to work more like the human brain, so that they activate only a subset of parameters in charge of a specific task. That’s an important argument we want to convey.”
About Stevens Institute of Technology
Stevens is a premier, private research university situated in Hoboken, New Jersey. Since our founding in 1870, technological innovation has been the hallmark of Stevens’ education and research. Within the university’s three schools and one college, more than 8,000 undergraduate and graduate students collaborate closely with faculty in an interdisciplinary, student-centric, entrepreneurial environment. Academic and research programs spanning business, computing, engineering, the arts and other disciplines actively advance the frontiers of science and leverage technology to confront our most pressing global challenges. The university continues to be consistently ranked among the nation’s leaders in career services, post-graduation salaries of alumni and return on tuition investment.
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