Demystifying Agent Skills: Why They Work—Until They Don’t

This research investigates the operational dynamics of agent skills, which are structured packages of procedural knowledge designed to help AI agents learn from experience. By comparing distilled skills against raw workflow memories, the study reveals that skills primarily act as procedural anchors that stabilize execution and reduce environment failures rather than simply injecting factual knowledge. While skills improve task success by providing compact guidance, they also introduce new risks, such as mechanical misapplication or the rigid following of incompatible instructions. The authors also identify retrieval as a significant bottleneck, noting that while agents often find the correct skill, their performance is frequently hindered by confusable distractors and execution-layer difficulties. Ultimately, the work provides a systematic taxonomy of success and failure modes to move evaluation beyond simple success rates toward a deeper understanding of reliable self-improvement.