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This research addresses a critical reliability gap in Vision-Language Models (VLMs) by decoupling semantic reasoning from spatial grounding to solve the "tiny-object" detection problem in vehicle damage assessment. The proposed TinyDamage architecture demonstrates that standard loss functions like focal failure on minute defects, while supervised contrastive objectives significantly improve separability between damage and surface texture. By integrating a dedicated segmentation module into an agent pipeline, the system reduces report hallucination rates from over 90% to just 31%, offering a robust framework for deploying VLMs in high-stakes visual inspection tasks.
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Grounding Agentic VLMs with Dedicated Segmentation for Fine-Grained Vehicle Damage Assessment

arXiv3 min read

arXiv:2608.02470v1 Announce Type: cross Abstract: Vision-language models (VLMs) are increasingly deployed as reasoning agents in real-world visual assessment pipelines, yet their spatial grounding remains unreliable for fine-grained, visually ambiguous targets. We study this gap in the context of automated vehicle damage assessment, where fine-grained defects such as scratches and hairline cracks occupy few pixels, produce weak gradient signal, and are easily confused with reflections and surface texture. We show that a state-of-the-art VLM (Qwen-VL) achieves strong semantic classification accuracy (87.3%) on this task but is systematically ungrounded at the spatial level: it hallucinates damage in reflective regions, misses elongated scratches entirely, and produces spatially inconsistent outputs when prompted for localization. We propose TinyDamage, a hybrid architecture that delegates spatial grounding to a dedicated multi-task segmentation model while reserving the VLM for semantic reasoning and report generation. On the segmentation side, we find that the choice of loss function has an outsized and underexplored effect on tiny-object grounding: focal loss, widely used for class imbalance, collapses tiny-damage detection to zero, while a supervised contrastive objective measurably improves damage/background separability. We integrate the segmentation model into a 7-node LangGraph agent pipeline that grounds every VLM generation step in the segmentation output, and show that this grounding reduces the report hallucination rate from 92% (text-only) and 78% (image-only) to 31% in a controlled evaluation on 100 human-verified reports. We introduce DET_l, a permissive per-category detection metric for evaluating tiny-object grounding under class imbalance, and report latency and reliability characteristics of the deployed pipeline.

Abstract:Vision-language models (VLMs) are increasingly deployed as reasoning agents in real-world visual assessment pipelines, yet their spatial grounding remains unreliable for fine-grained, visually ambiguous targets. We study this gap in the context of automated vehicle damage assessment, where fine-grained defects such as scratches and hairline cracks occupy few pixels, produce weak gradient signal, and are easily confused with reflections and surface texture. We show that a state-of-the-art VLM (Qwen-VL) achieves strong semantic classification accuracy (87.3%) on this task but is systematically ungrounded at the spatial level: it hallucinates damage in reflective regions, misses elongated scratches entirely, and produces spatially inconsistent outputs when prompted for localization. We propose TinyDamage, a hybrid architecture that delegates spatial grounding to a dedicated multi-task segmentation model while reserving the VLM for semantic reasoning and report generation. On the segmentation side, we find that the choice of loss function has an outsized and underexplored effect on tiny-object grounding: focal loss, widely used for class imbalance, collapses tiny-damage detection to zero, while a supervised contrastive objective measurably improves damage/background separability. We integrate the segmentation model into a 7-node LangGraph agent pipeline that grounds every VLM generation step in the segmentation output, and show that this grounding reduces the report hallucination rate from 92% (text-only) and 78% (image-only) to 31% in a controlled evaluation on 100 human-verified reports. We introduce DET_l, a permissive per-category detection metric for evaluating tiny-object grounding under class imbalance, and report latency and reliability characteristics of the deployed pipeline.

Computer Vision and Pattern Recognition (cs.CV); Artificial Intelligence (cs.AI)

I.2.10; I.4.6; I.2.7

arXiv:2608.02470 [cs.CV]

(or arXiv:2608.02470v1 [cs.CV] for this version)

https://doi.org/10.48550/arXiv.2608.02470 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 348 words

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