ICL CIPHERS: Quantifying "Learning" in In-Context Learning via Substitution Ciphers

Recent works have suggested that In-Context Learning (ICL) operates in dual modes, i.e. task retrieval (remember learned patterns from pre-training) and task learning (inference-time "learning" from demonstrations). However, disentangling these the two modes remains a challenging goal. We introduce ICL CIPHERS, a class of task reformulations based on substitution ciphers borrowed from classic cryptography. In this approach, a subset of tokens in the in-context inputs are substituted with other (irrelevant) tokens, rendering English sentences less comprehensible to human eye. However, by design, there is a latent, fixed pattern to this substitution, making it reversible. This bijective (reversible) cipher ensures that the task remains a well-defined task in some abstract sense, despite the transformations. It is a curious question if LLMs can solve tasks reformulated by ICL CIPHERS with a BIJEC-TIVE mapping, which requires "deciphering" the latent cipher. We show that LLMs are better at solving tasks reformulated by ICL CIPHERS with BIJECTIVE mappings than the NON-BIJECTIVE (irreversible) baseline, providing a novel approach to quantify "learning" in ICL. While this gap is small, it is consistent across the board on four datasets and six models. Finally, our interpretability analysis shows evidence that LLMs can internally decode ciphered inputs. 1