Entropy-Based Observability for AI Agent Behavior

AI agents are promising for high-stakes enterprise workflows, but dependable deployment remains limited because these tool-use decisions are difficult to diagnose and control. Agents may skip required tool calls, invoke tools unnecessarily, or take actions whose consequences become visible only after execution. Existing observability methods are external: prompts reveal correlations, evaluations score outputs, and logs arrive only after the model has already acted. In long-horizon settings, these failures are costly because an early tool mistake can alter the rest of the execution trajectory, increase token consumption, and create downstream safety and security risk. We introduce a mechanistic-interpretability toolkit built on Sparse Autoencoders (SAEs), which decompose activations into sparse internal features, and linear probes, lightweight classifiers that read signals from those features. The framework reads model states before each action and infers whether a tool is needed and how risky the next tool action is. It identifies the model layers and features most associated with tool decisions and tests their functional importance through feature ablation. We train the probes on multi-step agent execution traces from the NVIDIA Nemotron function-calling dataset and apply the same workflow to GPT-OSS 20B and Gemma 3 27B models. The goal is not to replace external evaluation, but to add a missing layer: visibility into what the model signaled internally before action. This helps surface deeper causes of agent failure, especially in long-horizon runs where an early mistake can impact subsequent agent behavior. More broadly, the paper shows how mechanistic interpretability can support internal observability for monitoring tool calls and risk in agent systems.

Delegation-scoped execution is not identifiable from standard observables: audit logs and execution traces can be identical under multiple incompatible delegation assignments. This gap is especially acute in LLM-based agentic systems, where agents dynamically select tools, vary execution sequences across runs for the same instruction, and spawn cooperating sub-agents. These dynamics fragment and interleave traces, making delegation-scoped reconstruction from causal structure alone structurally underdetermined. Although individual actions are authorized and logged, existing audit, tracing, and security schemas lack the semantics to reconstruct what actions occurred under a given delegation across heterogeneous systems. We focus on delegation-scoped attribution and access/share footprint reconstruction, not intent inference or reasoning reconstruction. We present an agent-aware observability substrate consisting of a lightweight gateway and a common information model that binds delegation context at execution time. This enables reliable cross-tool delegation-scoped reconstruction and direct forensic queries without heuristic time-window correlation.

Autonomous agents such as Claude Code and Codex now operate for hours or even days. Understanding their runtime behavior has become critical for downstream tasks such as diagnosing inefficiencies, fixing bugs, and ensuring better oversight. A primary way to gain this understanding is analyzing the reasoning trajectories and execution traces these agents generate. Yet such data remains in unstructured natural-language form, making it difficult for humans to interpret at scale. We introduce ACTONOMY (a combination of Action and Taxonomy), a taxonomy for describing and analyzing agent behavior at runtime. ACTONOMY has two components: (1) the taxonomy itself, developed through Grounded Theory and structured as a three-level hierarchy of 10 actions, 46 subactions, and 120 leaf categories; and (2) an open repository that hosts the living taxonomy, provides an automated analysis pipeline that applies it to agent trajectories analysis, and defines an extension protocol for customization and growth. Our experiments show that ACTONOMY can compare behavioral profiles across agents and characterize a single agent's behavior across diverse trajectories, surfacing patterns indicative of failure modes. By providing a shared vocabulary, ACT*ONOMY helps researchers, agent designers, and end users interpret agent behavior more consistently, enabling better oversight and control.