Toolflation: Seller Agents Distort Tool Markets Through Spontaneous Generative Engine Optimization

Zhenwei Tang, Di Bai, Jintao Liu, Xidong Wu, Qianfeng Wen +1

Agents are starting to sell to other agents. Seller agents write the listings of tools, services and products, and buyer agents read these listings when they choose what to use. We show that seller agents told only to be selected more often practice generative engine optimization on their own, and that this distorts the market for sellers and for buyers. We build tool markets from real data tools on Amazon and Instagram and run every tool on every question, so we know which tools can answer each question. Under all five production models we test, sellers rewrite their descriptions to claim more and more fields, including fields that their tools return for fewer than half of the targets. We call this process toolflation. Nothing in the market limits it, and how far it goes depends on the model, as the number of claims that contradict the sellers' own evidence differs by an order of magnitude between models. Toolflation shifts the buyers' choices between sellers, and the most capable tool loses share in seven of the ten combinations of seller model and platform. Under four models, the choices stay with capable tools and buyer agents keep their task success. Under the fifth, sellers…