The Scaling Laws of Skills in LLM Agent Systems

Skill libraries allow LLM agents to load task-specific instructions on demand, letting non-expert users solve domain-specific tasks through natural language without knowing which skills exist or how they work. However, performance degrades as libraries grow -- by up to 21% when scaling from a small set of helpful skills to a 202-skill library. In this work, we formulate this performance degradation as the pass rate drop between loading a library of known-helpful skills and the full library. Moreover, we propose to decompose the pass rate drop by conditioning on the skill(s) invocation -- which skills the agent selects during a trajectory -- into two effects: \emph{skill shadowing}, where the agent selects wrong skills more often as the library expands, and \emph{context overhead}, where the enlarged context degrades execution even when selection is correct. We derive upper bounds on both effects to characterize their magnitudes of impacts to the pass rate drop. Our empirical estimates of the effects and their upper bounds both show that the \emph{skill shadowing} effect grows with library size and significantly contributes to the performance degradation, whereas the \emph{context overhead} effect remains small and indistinguishable from zero. This observed asymmetry establishes that the skill selection failure, not the enlarged context, is the primary bottleneck when expanding the skill libraries.

Skills extend an LLM agent beyond its parametric knowledge, and the gain they promise rests on picking the right one. Deployed harnesses route by preloading every skill's metadata into the context, which disperses the agent's attention and caps the library size. Retrieval pipelines move the selection out of the context, but also out of the agent's capability. We show that the frozen agent LLM already carries the routing signal in its own forward passes, and that two linear maps suffice to read it out with no skill text in the context. Gavel (Glance And Verdict from a frozen LLM) reads it in two steps. A glance projects the task's and each skill's mid-layer states through the two maps, the only parameters trained, and scores the full library against compact per-skill banks that one forward pass builds at installation. A verdict then resumes the shortlisted skills' forward passes and reads the model's own likelihood and yes/no judgment, fused with the glance as a product of experts. Trained once, Gavel transfers zero-shot to three public benchmarks and SkillTraj, our new benchmark of 372 simulated agent trajectories. On Qwen3-32B it outperforms progressive disclosure and retrieve-and-rerank pipelines that add 1.2B to 16B external parameters, by up to 13.4 points on written tasks and up to 21.9 when the need for a skill arises mid-rollout. Routing accuracy improves as the backbone does, and in a bash-agent harness the same 32B triggers the correct skill on Skill-Use more often than far larger frontier models running in Codex.

LLM agents increasingly retrieve externally curated skills-procedural instructions retrieved at decision time-to improve performance on long-horizon interactive tasks. Existing skill libraries are typically treated as model-agnostic, reusing the same skill formulations across backbones with substantially different capacities and behaviors. However, our controlled experiments across multiple model scales show that skill effectiveness is strongly model-dependent: a skill that benefits one backbone can harm another. Motivated by this observation, we propose MASA Model-Aware Skill Alignment, a framework that adapts skills to each target backbone without modifying agent weights. MASA operates in two stages: (1) a hierarchical skill evolution pipeline that iteratively rewrites general and task-specific skills using hill climbing and UCB-driven tree search, guided by environment feedback and model capability profiles; and (2) a lightweight model-conditioned skill rewriter trained on evolution trajectories to reproduce the adaptation in a single forward pass. Experiments across three interactive environments and four backbones show that MASA consistently achieves the best overall performance, with gains of up to 25.8 points over the strongest baseline. The learned rewriter further generalizes to unseen tasks and environments without additional search, consistently outperforming a much larger teacher LLM at a fraction of the inference cost.