Abductive Mode
Generate best explanation from observation through competing hypotheses.
When to Use
- Single anomaly or unexpected outcome occurred
- Need to diagnose root cause
- Something surprising happened
- Question is "Why did this happen?"
Flow
Observation → Hypotheses (≥5) → Evidence Debate → Best Explanation
Stage 1: Observation
Quantify the anomaly before explaining it.
Required elements:
- Deviation: Numeric change (absolute and relative)
- Timeline: When started, duration, persistence
- Scope: Which segments, systems, users affected
- Baseline: Where the expected value comes from
Example:
Observation: Enterprise conversion dropped from 15% to 9% (40% relative decline).
Timeline: Started week 5 of Q3, accelerated through Q4.
Scope: Enterprise segment only; SMB conversion stable at 22%.
Baseline: 15% was trailing 6-month average before Q3.
Gate: Anomaly must be quantified, not just described. "Conversion dropped" is insufficient. "Conversion dropped 40% (15% → 9%)" is sufficient.
Stage 2: Hypothesis Generation
Generate ≥5 hypotheses across ≥3 categories before evaluating any.
Standard Categories
| Category | Examples |
|---|---|
| Technical | Site issues, bugs, performance, integration failures |
| Product | Features, pricing, positioning, UX changes |
| Market | Competition, trends, seasonality, macro shifts |
| Operational | Team changes, process issues, capacity constraints |
| External | Economy, regulations, events, platform changes |
AI System Categories
When diagnosing AI/agent failures, add these:
By Intelligence Layer:
| Layer | Hypothesis Type | Example |
|---|---|---|
| Representation | Encoding problem | "Tokenization losing semantic boundaries" |
| Generalization | Learning failure | "Model overfit to training artifacts" |
| Reasoning | Recombination failure | "Thin geometry in this domain" |
| Agency | Action failure | "Tool schema mismatch" |
By System Layer:
| Layer | Hypothesis Type |
|---|---|
| Input Sanitation | Malformed input passed through |
| Retrieval | Wrong context retrieved |
| Model Invocation | Wrong model for task |
| Orchestration | CoT failure, tool sequencing |
| Constraint | Guardrail bypass |
| Memory | Stale state, hallucinated memory |
| Evaluation | Metric gaming |
| Monitoring | Distribution shift undetected |
By Agent Failure Mode:
| Mode | Hypothesis |
|---|---|
| Hallucinated Actions | "Agent inventing APIs that don't exist" |
| Infinite Loops | "Missing termination condition" |
| Goal Drift | "Task mutating during execution" |
| Over-Confidence | "Acting without appropriate uncertainty" |
Example:
H1 (Operational): AM departures caused relationship gaps.
Mechanism: Key AMs left → rapport lost → deals stalled.H2 (External): Economic uncertainty extending cycles.
Mechanism: CFO involvement up → longer approval chains.H3 (Market): Competitor launched enterprise offering.
Mechanism: Prospects evaluating alternatives before committing.H4 (Product): Missing enterprise features blocking purchases.
Mechanism: SSO/audit gaps appearing in requirements.H5 (Operational): Not a real drop—just elongated cycles.
Mechanism: Pipeline value unchanged, timing shifted.
Gate: Must have ≥5 hypotheses across ≥3 categories before proceeding.
Stage 3: Evidence Debate
Test each hypothesis against available evidence.
For each hypothesis, ask:
- What would we expect to see if this is true?
- What would contradict this?
- What evidence do we actually have?
Scoring dimensions:
| Dimension | Weight | Question |
|---|---|---|
| Explanatory Power | 30% | Does it explain the full anomaly? |
| Coherence | 25% | Is it consistent with other facts? |
| Simplicity | 20% | Does it avoid unnecessary assumptions? |
| Prior Probability | 15% | How likely was this before the evidence? |
| Testability | 10% | Can we verify or falsify it? |
Challenge techniques:
- "This doesn't explain [aspect of the anomaly]..."
- "If this were true, we'd also see [X], but we don't..."
- "This assumes [Y], but is that valid?"
Example:
Testing H1 (AM departures):
- Supporting: 60% of drop concentrated in departed AMs' accounts ✓
- Supporting: Timeline matches—departures Q3, acceleration Q4 ✓
- Challenge: Doesn't explain why NEW accounts also slowed (15% of drop)
- Verdict: Explains 85% of effect, not 100%
Testing H3 (Competitor):
- Check: Win/loss data shows only 3 of 47 losses mentioned competitor
- That's 6%—noise, not signal
- Verdict: Ruled out as primary cause
Testing H4 (Features):
- Check: Zero mentions of SSO/audit in loss reasons
- Verdict: Ruled out
Gate: Each top-3 hypothesis must survive at least one serious challenge.
Stage 4: Best Explanation
Synthesize findings into conclusion.
Required elements:
- Primary cause with confidence (0-100%)
- Mechanism explaining how cause produces effect
- Minority report if second hypothesis ≥40% confidence
- Ruled out hypotheses with reasons
- Remaining uncertainty
- Next steps
Output format:
## Diagnosis: [Anomaly Name]
**Primary cause ([X]% confidence):** [Explanation in 1-2 sentences]
**Mechanism:** [How cause produces effect]
**Minority view ([Y]% confidence):** [Second hypothesis if ≥40%]
- Revisit if: [Conditions that would change conclusion]
**Ruled out:**
- [H3]: [Evidence that eliminated it]
- [H4]: [Evidence that eliminated it]
**Remaining uncertainty:** [What we still don't know]
**Next steps:**
1. [Immediate action]
2. [Monitoring plan]
Example:
Diagnosis: Enterprise Conversion Drop
Primary cause (72% confidence): AM departures created relationship gaps, stalling deals in existing accounts.
Mechanism: Key AMs left Q3 → relationship continuity lost → deals in progress stalled → appears as conversion drop in Q4.
Minority view (45% confidence): Economic uncertainty explains slowdown in new accounts (15% of total effect).
- Revisit if: Recovery doesn't materialize after AM backfill
Ruled out:
- Competitor: Only 6% of losses mentioned them
- Missing features: Zero mentions in loss reasons
Remaining uncertainty: Whether elongated cycles will eventually convert or are truly lost.
Next steps:
- Backfill AM positions with enterprise experience
- Re-engage stalled deals with new relationship owners
- Monitor Q1 conversion with weekly tracking
AI System Diagnosis Example
## Observation
Agent task completion dropped from 85% to 52% after model upgrade.
- Timeline: Immediate, started with deployment
- Scope: Multi-step tasks only; single-step tasks unaffected
- Baseline: 85% was 30-day average before upgrade
## Hypotheses
**H1 (Reasoning layer):** New model has thinner geometry for tool sequencing.
**H2 (Agency layer):** Tool schemas incompatible with new model's output format.
**H3 (Memory layer):** Context window handling changed, losing mid-task state.
**H4 (Orchestration layer):** CoT prompts were tuned for old model.
**H5 (Representation layer):** Token boundaries different, breaking structured output parsing.
## Evidence Debate
**H1 test:** If geometry is thinner, single-step tasks with same tools should also degrade.
- Finding: Single-step tasks unaffected.
- Verdict: H1 less likely.
**H2 test:** Check tool call logs for format errors.
- Finding: 67% of failures show malformed tool parameters.
- Verdict: H2 supported.
**H4 test:** Review CoT prompts for model-specific assumptions.
- Finding: Prompts reference old model's output structure.
- Verdict: H4 supported, may combine with H2.
## Diagnosis
**Primary cause (68% confidence):** Tool schemas and CoT prompts assume old model's output format (H2 + H4 combined).
**Mechanism:** New model produces valid JSON but with different field ordering and optional field handling → parsing fails → tool calls malformed → multi-step chains break.
**Next steps:**
1. Update tool schemas for new model's output format
2. Revise CoT prompts to be model-agnostic
3. Add output validation layer between model and tool execution
Output Format
## Diagnosis: [Anomaly Name]
### Observation
**Anomaly:** [Quantified deviation]
**Timeline:** [When started, duration]
**Scope:** [What's affected, what's not]
**Baseline:** [Expected value and source]
### Hypotheses Considered
| # | Hypothesis | Category | Confidence |
|---|------------|----------|------------|
| H1 | [Cause] | [Category] | [%] |
| H2 | [Cause] | [Category] | [%] |
| H3 | [Cause] | [Category] | [%] |
### Evidence Analysis
**H1: [Hypothesis]**
- Supporting: [Evidence for]
- Contradicting: [Evidence against]
- Verdict: [Supported/Weakened/Ruled out]
**H2: [Hypothesis]**
- Supporting: [Evidence for]
- Contradicting: [Evidence against]
- Verdict: [Supported/Weakened/Ruled out]
### Conclusion
**Primary cause ([X]% confidence):** [Explanation in 1-2 sentences]
**Mechanism:** [How cause produces effect]
**Minority view ([Y]% confidence):** [Second hypothesis if ≥40%]
- Revisit if: [Conditions that would change conclusion]
### Ruled Out
- **[H3]:** [Evidence that eliminated it]
### Remaining Uncertainty
- [What we still don't know]
### Next Steps
1. [Immediate action]
2. [Monitoring plan]
Quality Gates
| Stage | Gate |
|---|---|
| Observation | Quantified deviation with timeline and scope |
| Hypotheses | ≥5 across ≥3 categories |
| Evidence | Each top-3 survives ≥1 challenge |
| Conclusion | Minority report if #2 ≥40% confidence |
Anti-Patterns
| Avoid | Do Instead |
|---|---|
| Single hypothesis | Generate ≥5 before evaluating |
| Same category | Require ≥3 categories |
| Confirming favorite | Challenge the leading hypothesis hardest |
| Ignoring minority | Include if confidence ≥40% |
| "It's obvious" | Require evidence for conclusion |
| Blaming wrong layer | Check representation before reasoning |