Localized Definitions and Distributed Reasoning: A Proof-of-Concept Mechanistic Interpretability Study via Activation Patching

This study investigates the localization of knowledge representation in fine-tuned GPT-2 models using Causal Layer Attribution via Activation Patching (CLAP), a method that identifies critical neural layers responsible for correct answer generation. The model was fine-tuned on 9,958 PubMed abstracts (epilepsy: 20,595 mentions, EEG: 11,674 mentions, seizure: 13,921 mentions) using two configurations with validation loss monitoring for early stopping. CLAP involved (1) caching clean (correct answer) and corrupted (incorrect answer) activations, (2) computing logit difference to quantify model preference, and (3) patching corrupted activations with clean ones to assess recovery. Results revealed three findings: First, patching the first feedforward layer recovered 56% of correct preference, demonstrating that associative knowledge is distributed across multiple layers. Second, patching the final output layer completely restored accuracy (100% recovery), indicating that definitional knowledge is localised. The stronger clean logit difference for definitional questions further supports this localized representation. Third, minimal recovery from convolutional layer patching (13.6%) suggests low-level features contribute marginally to high-level reasoning. Statistical analysis confirmed significant layer-specific effects (p<0.01). These findings demonstrate that factual knowledge is more localized and associative knowledge depends on distributed representations. We also showed that editing efficacy depends on task type. Our findings not only reconcile conflicting observations about localization in model editing but also emphasize on using task-adaptive techniques for reliable, interpretable updates.