Abstract
Large language models in Agentic AI systems consume tool schemas and execution results and emit tool invocations as structured data. The default language for that exchange, JSON, was designed for application-to-application interchange rather than token efficiency, so its structural elements impose substantial token overhead. Recent work proposes token-optimized alternatives such as TOON (Token-Oriented Object Notation) and TRON (Token Reduced Object Notation) as more compact replacements, but these formats have been evaluated only on isolated comprehension or generation tasks. Whether their token reductions hold inside end-to-end agentic loops therefore remains an open question. We evaluate TOON and TRON on four agentic benchmarks (BFCL, MCPToolBenchPP, MCP-Universe, StableToolBench) and five open-weight LLMs, decoupling input compression from output compression to measure comprehension and generation independently. TRON reduces tokens by up to 27% with accuracy within 14pp of the JSON baseline. TOON achieves up to 18% reduction at a similar 9pp accuracy cost, but additionally cascades on multi-turn parsing failures and collapses parallel tool-call output for most models. The code is available at: https://github.com/lkutschka/notation-matters
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Production agent frameworks (OpenAI Function Calling, Anthropic Tool Use, MCP) transmit tool schemas as JSON, a format designed for machine parsing, not for interpretation by language models. For small models (4B-14B), this protocol mismatch accounts for the majority of tool-use failure at production catalog sizes. We present TSCG, a deterministic tool-schema compiler that resolves this mismatch at the API boundary, converting JSON schemas into token-efficient structured text without model access, fine-tuning, or runtime search. TSCG combines eight composable operators with a formal compression bound (>=51% on well-formed schemas). On TSCG-Agentic-Bench (about 19,000 calls, 12 models, 5 scenarios), TSCG restores Phi-4 14B from 0% to 84.4% accuracy at 20 tools (90.3% at 50 tools) and achieves 108-181% accuracy-retained ratio across three models on BFCL. Format-versus-compression decomposition (R^2=0.88 -> 0.03) establishes representation change as the dominant mechanism. Per-operator isolation across three frontier models reveals three distinct operator-response profiles: operator-hungry (Opus 4.7), operator-sensitive (GPT-5.2), and operator-robust (Sonnet 4), providing per-model deployment guidance. Scaling experiments show accuracy advantages persisting on heavy production MCP schemas (+5.0 pp at about 10,500 input tokens) despite saturation on light synthetic catalogs, with 52-57% token savings throughout. The synthetic benchmark generalizes to real MCP schemas within 0.1 accuracy points. TSCG ships as a 1,200-line zero-dependency TypeScript package.
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Apr 24, 2026cs.CL
The wide adoption of AI agents in complex human workflows is driving rapid growth in LLM token consumption. When agents are deployed on tasks that require a significant amount of tokens, three questions naturally arise: (1) Where do AI agents spend the tokens? (2) Which models are more token-efficient? and (3) Can agents predict their token usage before task execution? In this paper, we present the first systematic study of token consumption patterns in agentic coding tasks. We analyze trajectories from eight frontier LLMs on SWE-bench Verified and evaluate models' ability to predict their own token costs before task execution. We find that: (1) agentic tasks are uniquely expensive, consuming 1000x more tokens than code reasoning and code chat, with input tokens rather than output tokens driving the overall cost; (2) token usage is highly variable and inherently stochastic: runs on the same task can differ by up to 30x in total tokens, and higher token usage does not translate into higher accuracy; instead, accuracy often peaks at intermediate cost and saturates at higher costs; (3) models vary substantially in token efficiency: on the same tasks, Kimi-K2 and Claude-Sonnet-4.5, on average, consume over 1.5 million more tokens than GPT-5; (4) task difficulty rated by human experts only weakly aligns with actual token costs, revealing a fundamental gap between human-perceived complexity and the computational effort agents actually expend; and (5) frontier models fail to accurately predict their own token usage (with weak-to-moderate correlations, up to 0.39) and systematically underestimate real token costs. Our study offers new insights into the economics of AI agents and can inspire future research in this direction.
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May 24, 2026cs.SE
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