What is Function Calling?

Giselle Knowledge Researcher,
Writer

PUBLISHED

Function calling is a powerful capability within Large Language Models (LLMs) that allows them to go beyond static responses and interact with external systems, databases, or tools. Traditionally, LLMs are limited to generating text-based answers based on the knowledge they were trained on. However, function calling enables these models to connect to external APIs or functions, allowing them to perform real-time actions, retrieve up-to-date data, or complete complex tasks that would be impossible within the model's static training data.

For example, consider an LLM that can retrieve current weather information. Instead of generating a generic weather report based on old training data, the model can "call" an external weather API, gather real-time data, and respond accurately to a query like, “What’s the weather like in New York right now?” This makes LLMs significantly more dynamic and useful in real-world applications.

Function calling is crucial in extending LLMs' capabilities beyond generating responses from past information. It allows them to interact with real-time data and external services, making them more applicable in contexts like customer support, data retrieval, and automation. This interaction bridges the gap between a model’s static knowledge and the dynamic needs of users across various industries.

1. How Does Function Calling Work?

Definition:

At its core, function calling enables an LLM to generate structured data output that specifies which external function to call and what parameters to use. Importantly, the model does not execute the function directly; rather, it suggests the necessary function and arguments, leaving the actual execution to an external system. For example, when asked for recent customer orders, the model might suggest a function like get_orders and provide the appropriate parameters, such as customer_id. This output is then passed to an external API or system to execute the function.

The concept revolves around defining the functions in advance, which the model can use to provide real-time data or complete external actions. These functions are usually described in a structured format, like JSON Schema, to ensure that the model generates the correct parameters required for the function to operate. By doing so, LLMs are empowered to handle more complex tasks without being limited to pre-existing knowledge.

Example:

Consider a scenario where a user interacts with an AI assistant and asks, “What is the weather like in Tokyo?” The LLM cannot provide real-time weather data on its own. Instead, it triggers a function call by generating a structured request to an external API. This request might look something like this:

{
  "name": "get_weather",
  "parameters": {
    "location": "Tokyo"
  }
}

The external system receives this request, fetches the current weather data from a weather service, and returns it to the LLM, which can then relay the answer to the user. For example: “The current temperature in Tokyo is 25°C with clear skies.” This seamless interaction between the model and external systems demonstrates the power of function calling, making LLMs more useful and relevant in various practical applications.

By enabling models to fetch live data, complete transactions, or perform calculations through external functions, function calling transforms how AI interacts with the world, enhancing the usefulness and practicality of LLMs in business and everyday use cases.

2. The Process of Function Calling

Function calling follows a systematic process, allowing Large Language Models (LLMs) to interact with external systems. This process can be broken down into several steps, each contributing to the effective integration of real-time data and external functions into a user-friendly experience:

  1. User query: The process starts with the user providing a query. For instance, a user might ask, “What’s the status of my recent order?” or “What’s the current temperature in New York?” The query serves as the input that triggers the model to consider using a function to fetch external information.

  2. Model decision: The model analyzes the query to determine whether it can respond using its internal knowledge or if it needs to call an external function. This decision depends on the context of the query. If the query involves real-time or external information, the model is likely to trigger a function call.

  3. Tool use (Function Argument Generation): Once the model determines that a function is required, it generates the necessary arguments based on the user’s query. For example, if the user asks for the weather in Tokyo, the model might generate a request like get_weather(location="Tokyo"). The arguments are structured according to the function’s schema, which ensures that the external system understands and processes them correctly.

  4. User execution: The actual execution of the function takes place on the user’s end, typically in an application or backend system. The model itself does not perform the function directly; it merely provides the information needed to execute the function. For instance, in a customer support scenario, the application would fetch the customer’s order status from a database using the function call generated by the model.

  5. Return response: After the function is executed, the result (e.g., current weather, customer order status) is returned to the model, which then formats the information into a natural language response. The final output is shared with the user in a clear and understandable manner, closing the loop between the model and the external function.

This process highlights how LLMs can dynamically extend their capabilities by interacting with real-time data and performing tasks that go beyond their training.

3. Core Use Cases of Function Calling

Function calling opens a wide range of possibilities for applying LLMs in real-world scenarios. Here are some key use cases:

  1. Data Retrieval: One of the most common use cases for function calling is accessing real-time data from external databases. For example, in a customer service application, the LLM can retrieve the status of a customer's recent orders or account information from a backend database. This enables users to get up-to-date responses that are directly relevant to their queries, improving both efficiency and user experience.

  2. Performing Computations: Another useful application is performing calculations or computations that go beyond the model’s training. For instance, if a user asks a math tutoring assistant to solve a complex equation, the model can call an external computation tool to perform the calculation and return the result. This is particularly useful in domains like finance, science, or education, where precision is critical.

  3. External APIs: LLMs can connect to third-party APIs to fetch real-time information like weather updates, stock prices, or news. For example, if a user wants to know the latest stock price of a company, the model can trigger a function to call a financial API, retrieve the necessary data, and provide the information in a conversational format. This makes the LLM a powerful assistant for tasks that require up-to-the-minute data.

  4. Automation: Function calling is also a key enabler of workflow automation in systems like chatbots or customer support. By integrating with external tools, LLMs can automate tasks such as creating support tickets, scheduling meetings, or updating customer records based on user input. This reduces the need for manual intervention and streamlines processes across various industries.

These use cases demonstrate the versatility of function calling in enhancing the functionality of LLMs and making them indispensable tools across a range of domains.

Several platforms support function calling, offering different features and capabilities for integrating external tools with Large Language Models (LLMs). Here’s how function calling is implemented in key AI models and platforms:

  • OpenAI GPT-4: OpenAI’s GPT-4 models allow developers to define custom functions that can be invoked based on user input. The model doesn’t directly execute functions but generates structured outputs (e.g., JSON) specifying which function to call and the parameters to pass. This enables GPT-4 to fetch real-time data or perform actions by integrating with APIs, making it ideal for applications such as customer support, real-time data retrieval, and automation.

  • Claude by Anthropic: Claude by Anthropic excels in complex workflows through its ability to use external tools via function calling. Claude can integrate with client-defined tools and APIs, allowing users to customize its functionality. It evaluates whether a tool can assist in responding to a query and, if so, constructs the necessary function call. This capability is particularly useful for dynamic tasks like weather retrieval or order management, where real-time data and external functions are essential.

  • Mistral AI: Mistral models focus on specific use cases like payment systems or financial queries. Function calling in Mistral models involves generating arguments for user-defined functions, which can then be executed to retrieve data such as payment status or transaction history. Mistral’s API integration is designed to handle real-world business problems, such as automating financial workflows or accessing external databases.

  • Google Gemini: Google’s Gemini API supports function calling to handle complex workflows, allowing LLMs to interact with external systems in real time. Gemini models, particularly versions like Gemini 1.5 Flash, support parallel function calling, enabling the model to suggest multiple API calls in response to a single query. This feature is particularly beneficial for tasks like querying multiple data sources or automating multi-step processes in business applications.

5. Technical Implementation

Implementing function calling in LLMs involves several key steps and components, ensuring that external tools can be effectively integrated with the model’s responses.

  • Function Declarations: Function declarations are a critical part of integrating function calling into platforms like OpenAI, Claude, and Google Gemini. Developers define functions using JSON schema, which specifies the function name, description, and required parameters. These declarations act as a guide for the LLM, helping it generate the correct structured data for calling the function. For instance, if an API requires location data, the function declaration would include a location parameter with a clear description, ensuring the model generates the appropriate output.

  • Function Parameters: Accurate and clear function parameters are essential for ensuring that the model generates valid function calls. Each parameter should be well-defined, including its data type (e.g., string, integer) and whether it is required or optional. By providing this structure, LLMs can avoid errors or missing information when generating arguments for function calls. For example, if a function retrieves weather data, the location parameter should be clearly described with examples like "New York, NY" to avoid confusion.

  • Structured Output: When a model identifies the need to call an external function, it generates structured data, typically in JSON format, to specify the function name and parameters. This output can then be passed to the external system or API, which executes the function and returns the result. For example, a query like “What’s the temperature in Los Angeles?” would result in the model producing a JSON object like:

{
  "name": "get_weather",
  "parameters": {
    "location": "Los Angeles, CA"
  }
}

This structured approach ensures that external APIs receive the correct data and can provide the desired information or action.

This technical implementation allows LLMs to extend their capabilities significantly, making them capable of interacting with real-time data, automating workflows, and handling complex multi-step tasks across a range of industries.

6. Challenges and Considerations

Function calling introduces several technical and practical challenges, which must be considered when integrating it into Large Language Models (LLMs). These challenges stem from the limitations of LLMs themselves and the reliance on external systems.

Limitations

One of the primary challenges with function calling is that LLMs, such as GPT-4 and others, are typically trained on static datasets. As a result, their internal knowledge is “frozen” after training, meaning they cannot access real-time information or perform actions beyond their training scope. This is where function calling becomes valuable, enabling the model to retrieve up-to-date information or execute real-time tasks by querying external APIs. However, this reliance on external APIs introduces potential issues, such as the availability, reliability, and accuracy of the API. If an API fails or returns outdated information, the model’s response will be impacted. Therefore, while function calling extends the model’s abilities, it also introduces a dependency on external services that may not always be reliable.

Handling Edge Cases

Another challenge is handling edge cases, such as missing or incorrect arguments. For example, if a function requires specific input (e.g., a location for weather data) and the user’s query lacks this information, the model might generate incomplete or invalid arguments. Some platforms, such as Claude and OpenAI, mitigate this by using more advanced reasoning to infer missing parameters where possible, but this can lead to errors if the inferred data is incorrect. Additionally, models might struggle with ambiguous queries, where it is unclear which function should be used, resulting in either unnecessary function calls or incomplete responses. Developers must therefore design systems that clearly define the parameters and handle errors gracefully when input is invalid.

Parallel Function Calls

Parallel function calling is a more advanced technique where multiple functions are called simultaneously to respond to a single query. This is particularly useful in scenarios where multiple data sources or APIs need to be queried at once to provide a comprehensive answer. For instance, a chatbot might need to access both a weather API and a calendar API to provide a weather forecast and suggest the best time for an outdoor event. However, parallel function calls can introduce complexity, as the system must handle multiple results, merge them appropriately, and resolve any conflicts between different data sources. Platforms like Google Gemini support parallel function calling and provide tools for managing such scenarios, but developers need to carefully implement these features to avoid overwhelming the system or causing delays.

7. Best Practices for Function Calling

To ensure effective use of function calling in LLMs, developers should follow best practices for defining and configuring functions.

Tool Definition

The most important aspect of successful function calling is the clear and detailed definition of each tool or function. A well-defined tool includes a name, a comprehensive description of its purpose, and the parameters it accepts. This is especially important because the model relies on this information to determine when and how to use the function correctly. A vague or incomplete tool description can lead to incorrect or ineffective function calls. For example, specifying that a tool retrieves weather data is not enough—the description should detail what data it returns (e.g., temperature, humidity) and under what conditions it should be used.

Schema Design

Strongly-typed parameters are crucial for avoiding errors and improving the accuracy of function calls. JSON Schema is commonly used to define the expected input and output for functions, ensuring that the model generates valid arguments. By clearly specifying the data type (e.g., string, integer) and any required fields, developers can minimize the risk of errors or incomplete data. For instance, when defining a function to retrieve a payment status, parameters such as transaction_id should be marked as required and given a clear description, ensuring that the model provides all necessary data in the correct format.

Mode Selection

Platforms like OpenAI, Claude, and Google Gemini offer different modes for function calling, and selecting the appropriate mode can impact how the model behaves. The most common modes include:

  • Auto: The model decides whether to call a function or respond with text based on the query. This is the default mode and works well for general scenarios where not every query requires a function call.
  • Any: This mode forces the model to use one of the provided functions, even if it could answer the query without the function. This is useful when the external system needs to handle the task, such as retrieving live data.
  • None: In this mode, the model is prevented from calling any functions and must rely solely on its internal knowledge.

Choosing the right mode depends on the specific use case. For example, in a financial assistant application, you might use the Any mode to ensure that the model always queries the most up-to-date stock prices, whereas in other contexts, the Auto mode might suffice.

By following these best practices, developers can enhance the accuracy and reliability of function calls, making LLMs more effective in real-world applications.

8. Examples of Function Calling

Function calling has been successfully applied across a variety of domains, showcasing its practical benefits. Here are some real-world examples:

Case Study 1: How OpenAI Models Help in Customer Support with Order Tracking Functions

In customer support, function calling allows models like GPT-4 to interact with backend systems for order tracking. When a customer asks, “Where is my order?”, the model can generate a structured request to call an external system, retrieve the customer’s order details, and respond in real-time with information about delivery status or expected arrival. This not only saves time for both customers and support agents but also ensures accurate and up-to-date information is provided.

Case Study 2: Using Claude to Handle Weather and Location-Based Queries

Claude by Anthropic is highly effective in handling location-based queries. For instance, if a user asks, “What’s the weather like in Tokyo right now?”, Claude can use function calling to connect with a weather API, retrieve live weather data, and provide an accurate response. This ability to handle real-time data queries ensures that users receive current and contextually relevant information.

Case Study 3: Payment Tracking with Mistral AI Models for Transactional Queries

Mistral AI is particularly suited for transactional workflows, such as payment tracking. In this use case, a user might ask for the status of a payment. Mistral’s models can call external APIs or databases to retrieve the status of a transaction, providing details like payment confirmation or pending statuses. This function calling capability is especially useful in financial services, where accuracy and up-to-the-minute information are critical.

Case Study 4: Automating Ticket Assignment and Workflow Automation with Vertex AI’s Function Calling

Vertex AI by Google excels in automating complex workflows, such as ticket assignment in customer service environments. When a support request comes in, function calling enables Vertex AI to assess the nature of the request and assign it to the most appropriate team or agent. This automation not only speeds up the process but also ensures efficient resource allocation. The ability to handle multiple tasks in parallel, such as retrieving customer data while assigning tickets, showcases the strength of Vertex AI’s function calling.

9. Future of Function Calling

Advanced Use Cases

The future of function calling is likely to expand as AI becomes more integrated into real-time decision-making processes. Advanced use cases may include real-time data access in fields like healthcare, where LLMs could retrieve patient records and make recommendations based on live data. In finance, AI could automate complex investment decisions by querying multiple APIs for the latest market trends and making predictions based on the freshest information.

The integration of AI with external systems is expected to become more sophisticated, allowing models to handle increasingly complex workflows. For instance, function calling could enable AI to run entire business operations autonomously by accessing real-time sales data, adjusting supply chains, and communicating with vendors.

Expanding Multimodal Functionality

In the future, we may see the expansion of multimodal function calling, where LLMs can process not just text but also images, audio, and video. This could allow models to handle more complex queries, such as retrieving information from a video stream or interpreting visual data in real-time. For instance, a security system could use an AI model to process live camera feeds, identify anomalies, and trigger automated alerts or actions through function calling. This fusion of multimodal inputs with external actions would greatly expand the potential applications of AI across industries.

10. Key Takeaways of Function Calling

Function calling represents a transformative shift in how LLMs interact with the world. By connecting these models with real-time data sources and external systems, function calling enables AI to perform tasks that go far beyond text generation. Whether it’s automating workflows, retrieving live data, or handling complex decision-making, function calling significantly enhances the functionality and real-world applicability of LLMs.

In conclusion, function calling is a crucial development that extends the capabilities of LLMs, making them more versatile and interactive. As AI continues to evolve, the ability to seamlessly integrate external tools and systems will only grow in importance, positioning function calling as a key component of the next generation of AI-powered applications.



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