Causal Concept Graphs in LLM Latent Space for Stepwise Reasoning

Sparse autoencoders can localize where concepts live in language models, but not how they interact during multi-step reasoning. We propose Causal Concept Graphs (CCG): a directed acyclic graph over sparse, interpretable latent features, where edges capture learned causal dependencies between concepts. We combine task-conditioned sparse autoencoders for concept discovery with DAGMA-style differentiable structure learning for graph recovery and introduce the Causal Fidelity Score (CFS) to evaluate whether graph-guided interventions induce larger downstream effects than random ones. On ARC-Challenge, StrategyQA, and LogiQA with GPT-2 Medium, across five seeds ($n{=}15$ paired runs), CCG achieves $\CFS=5.654\pm0.625$, outperforming ROME-style tracing ($3.382\pm0.233$), SAE-only ranking ($2.479\pm0.196$), and a random baseline ($1.032\pm0.034$), with $p<0.0001$ after Bonferroni correction. Learned graphs are sparse (5-6\% edge density), domain-specific, and stable across seeds.