Does In-Context Learning Really Learn? Rethinking How Large Language Models Respond and Solve Tasks via In-Context Learning

In-context Learning (ICL) has emerged as a powerful capability alongside the development of scaled-up large language models (LLMs). By instructing LLMs using few-shot demonstrative examples, ICL enables them to perform a wide range of tasks without updating millions of parameters. However, the precise contributions of demonstrations towards improving end-task performance have not been thoroughly investigated in recent analytical studies. In this paper, we empirically decompose the overall performance of ICL into three dimensions, label space, format, and discrimination, and we evaluate four general-purpose LLMs across a diverse range of tasks. Counter-intuitively, we find that the demonstrations have a marginal impact on provoking discriminative knowledge of language models. However, ICL exhibits significant efficacy in regulating the label space and format, which helps LLMs respond to desired label words. We then demonstrate that this ability functions similar to detailed instructions for LLMs to follow. We additionally provide an in-depth analysis of the mechanism of retrieval helping with ICL. Our findings demonstrate that retrieving the semantically similar examples notably boosts the model's discriminative capability. However, we also observe a trade-off in selecting good in-context examples regarding label diversity.