Contextual Intelligence The Next Leap for Reinforcement Learning

Generally capable agents must learn from experience in ways that generalize across tasks and environments. The fundamental problems of learning, including credit assignment, overfitting, forgetting, local optima, and high-variance learning signals, persist whether the learned object lies in parameter space or context space. While these challenges are well understood in classical machine learning optimization, they remain underexplored in context space, leading current methods to be fragmented and ad hoc. We present Reflective Context Learning (RCL), a unified framework for agents that learn through repeated interaction, reflection on behavior and failure modes, and iterative updates to context. In RCL, reflection converts trajectories and current context into a directional update signal analogous to gradients, while mutation applies that signal to improve future behavior in context space. We recast recent context-optimization approaches as instances of this shared learning problem and systematically extend them with classical optimization primitives, including batching, improved credit-assignment signal, auxiliary losses, failure replay, and grouped rollouts for variance reduction. On AppWorld, BrowseComp+, and RewardBench2, these primitives improve over strong baselines, with their relative importance shifting across task regimes. We further analyze robustness to initialization, the effects of batch size, sampling and curriculum strategy, optimizer-state variants, and the impact of allocating stronger or weaker models to different optimization components. Our results suggest that learning through context updates should be treated not as a set of isolated algorithms, but as an optimization problem whose mechanisms can be studied systematically and improved through transferable principles.

In-context reinforcement learning (ICRL) enables large language model agents to adapt to new environments using their interaction history without updating model parameters. However, repeatedly conditioning on growing histories can lead to substantial token cost. We propose a bounded-history context-management framework that predicts the task-dependent downstream effect of removing historical interactions to guide history selection and determine a decision-dependent context budget. Formally, our framework uses the full rolling history as a reference. The predictor evaluates removal effects, defines a deletion ordering, and applies a shared selection criterion to determine how much history to retain at each decision. We evaluate the method in closed-loop SUMO driving under held-out in-distribution, unseen-domain, and unseen-route settings, and in ScienceWorld under a continual ICRL protocol. Relative to a baseline using the full context, our method reduces total token usage by 25.7%, 25.8%, and 23.2% across the three driving settings while maintaining comparable closed-loop driving performance. In ScienceWorld, it reduces total token usage by 52.1% compared to full context and uses 30.2% and 37.8% fewer tokens than the Recent and Similarity baselines, respectively, while maintaining performance.

Methods for generalization in model-based reinforcement learning typically assume that an agent cannot recover the latent context governing the environment dynamics from its own experience, and therefore supplies it externally. We formalize and test this assumption with predictive sufficiency, which quantifies what access to the context adds to next-step prediction under the visitation distribution an agent induces, and separates that quantity into a history-recoverable part, a residual requiring the true context, and the deficit added by a finite model. We classify context-aware algorithms by the predictive risk their conditioning set can target and demonstrate across environments of increasing identification difficulty that the headroom does not follow the MDP class. The same task under different priors leaves predictive headroom in one setting and nothing distinguishable from zero in another, where the agent's behavior implicitly identifies the context and any benefit of such a mechanism cannot be attributed to missing information. Where headroom persists, the learned state exposes it only partially, and adding the true context still lowers the risk. Our contribution is a practical criterion for matching contextual mechanisms to the information available to them, estimated from the ordinary trained agent without a reference policy.