Read More, Think More: Revisiting Observation Reduction for Web Agents

HTML observations in LLM-based web agents are extremely long, and while many reduction methods have been proposed, it remains unclear which methods reduce overall agent latency while maintaining performance. The main obstacle is the high cost of end-to-end evaluation: in our experiments, evaluating 11 methods across 32 configurations on 33 tasks of WorkArena L1 required 232.4 cumulative hours. To address this, we propose a lightweight evaluation framework based on the Minimal Failure Set (MFS), the minimal set of HTML elements whose removal causes task failure. We define coverage as the fraction of instances in which a reduction method fully retains the MFS, which serves as a proxy metric that requires neither web access nor LLM inference. We validate that coverage strongly correlates with end-to-end success rate, with over 100$\times$ speedup in cumulative evaluation time on both benchmarks. Using this framework, we find that extractive HTML reduction methods require either high computation cost or domain-specific optimization to reduce agent latency while maintaining performance. Building on this, we optimize a pruning program on MFS training data, achieving 2.2$\times$ faster per-step latency on WorkArena L1 while retaining 84% of the original success rate, and 3.1$\times$ faster on WebLinx while retaining 89%.

Web agents perceive web pages through an observation space, yet its granularity has remained an underexamined design choice. Existing work treats observation at the same element-level granularity as the action space, leaving the page's functional organization implicit and forcing the agent to infer it from element-level signals at every step. We argue observation should instead operate at the granularity of functional regions, parts of the page that each serve a distinct purpose. We propose Region4Web, a framework that reorganizes the AXTree into functional regions through hierarchical decomposition and semantic abstraction, exposing the page's functional organization as the basis for page state understanding. Moreover, we propose PageDigest, a web-specific inference pipeline that delivers this region-level observation to the actor agent as a compact per-page digest that persists across steps. On the WebArena benchmark, PageDigest substantially reduces observation length while improving overall task success rate across diverse backbone large language models (LLMs) and established agent methods, regardless of backbone capacity. These results show that operating at the granularity of functional regions delivers a more compact and informative basis for the actor agent than element-level processing alone.

Frontier LLMs can navigate complex websites, but their cost and reliance on third-party APIs make local deployment impractical. We introduce Agent-as-Annotators, a framework that structures synthetic trajectory generation for web agents by analogy to human annotation roles, replacing the Task Designer, Annotator, and Supervisor with modular LLM components. Using Gemini 3 Pro as teacher, we generate 3,000 trajectories across six web environments and fine-tune a 9B-parameter student with pure supervised learning on the 2,322 that pass quality filtering. The resulting model achieves 41.5% on WebArena, surpassing closed-source models such as Claude 3.5 Sonnet (36.0%) and GPT-4o (31.5%) under the same evaluation protocol, and nearly doubling the previous best open-weight result (Go-Browse, 21.7%). Capabilities transfer to unseen environments, with an 18.2 percentage point gain on WorkArena L1 (an enterprise platform never seen during training) and consistent improvements across three additional benchmarks. Ablations confirm that each pipeline component contributes meaningfully, with Judge filtering, evaluation hints, and reasoning traces each accounting for measurable gains. These results demonstrate that structured trajectory synthesis from a single frontier teacher is sufficient to produce competitive, locally deployable web agents. Project page: https://agent-as-annotators.github.io