EPISODE · Oct 3, 2025 · 25 MIN
ACON: Optimizing Context Compression for Long-horizon LLM Agents
from Daily Paper Cast · host Jingwen Liang, Gengyu Wang
🤗 Upvotes: 21 | cs.AI, cs.CL Authors: Minki Kang, Wei-Ning Chen, Dongge Han, Huseyin A. Inan, Lukas Wutschitz, Yanzhi Chen, Robert Sim, Saravan Rajmohan Title: ACON: Optimizing Context Compression for Long-horizon LLM Agents Arxiv: http://arxiv.org/abs/2510.00615v1 Abstract: Large language models (LLMs) are increasingly deployed as agents in dynamic, real-world environments, where success requires both reasoning and effective tool use. A central challenge for agentic tasks is the growing context length, as agents must accumulate long histories of actions and observations. This expansion raises costs and reduces efficiency in long-horizon tasks, yet prior work on context compression has mostly focused on single-step tasks or narrow applications. We introduce Agent Context Optimization (ACON), a unified framework that optimally compresses both environment observations and interaction histories into concise yet informative condensations. ACON leverages compression guideline optimization in natural language space: given paired trajectories where full context succeeds but compressed context fails, capable LLMs analyze the causes of failure, and the compression guideline is updated accordingly. Furthermore, we propose distilling the optimized LLM compressor into smaller models to reduce the overhead of the additional module. Experiments on AppWorld, OfficeBench, and Multi-objective QA show that ACON reduces memory usage by 26-54% (peak tokens) while largely preserving task performance, preserves over 95% of accuracy when distilled into smaller compressors, and enhances smaller LMs as long-horizon agents with up to 46% performance improvement.
What this episode covers
🤗 Upvotes: 21 | cs.AI, cs.CL Authors: Minki Kang, Wei-Ning Chen, Dongge Han, Huseyin A. Inan, Lukas Wutschitz, Yanzhi Chen, Robert Sim, Saravan Rajmohan Title: ACON: Optimizing Context Compression for Long-horizon LLM Agents Arxiv: http://arxiv.org/abs/2510.00615v1 Abstract: Large language models (LLMs) are increasingly deployed as agents in dynamic, real-world environments, where success requires both reasoning and effective tool use. A central challenge for agentic tasks is the growing context length, as agents must accumulate long histories of actions and observations. This expansion raises costs and reduces efficiency in long-horizon tasks, yet prior work on context compression has mostly focused on single-step tasks or narrow applications. We introduce Agent Context Optimization (ACON), a unified framework that optimally compresses both environment observations and interaction histories into concise yet informative condensations. ACON leverages compression guideline optimization in natural language space: given paired trajectories where full context succeeds but compressed context fails, capable LLMs analyze the causes of failure, and the compression guideline is updated accordingly. Furthermore, we propose distilling the optimized LLM compressor into smaller models to reduce the overhead of the additional module. Experiments on AppWorld, OfficeBench, and Multi-objective QA show that ACON reduces memory usage by 26-54% (peak tokens) while largely preserving task performance, preserves over 95% of accuracy when distilled into smaller compressors, and enhances smaller LMs as long-horizon agents with up to 46% performance improvement.
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ACON: Optimizing Context Compression for Long-horizon LLM Agents
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