Enhancing Virtual Agents through SLMs and Edge-Computing: An Exploratory Evaluation of Think and Memory Processes

As generative AI capabilities expand, AI-driven virtual worlds face a growing architectural challenge. Users interact through in-world interfaces in multimodal ways, yet their requests demand fundamentally different AI backend models and computational resources. Embedding these capabilities directly into virtual world systems reduces extensibility, complicates maintenance, and limits the ability to coordinate services distributed across edge and cloud infrastructure. This paper presents an SLM-based Agent Orchestration Gateway, a lightweight runtime coordination mechanism that decouples a virtual world client from heterogeneous AI backends through intent-driven service routing. An edge-deployed SLM classifies the semantic intent of each user prompt, a configurable service registry validates and resolves the routing decision, and the selected backend is invoked transparently, enabling new AI capabilities to be introduced in the virtual world without modifying the client application. The gateway is implemented and evaluated within the InterwovenXR virtual museum testbed. The evaluation shows that compact SLMs can serve as reliable intent routers on edge hardware, and that task-specific fine-tuning can transform sub-billion-parameter models into practical, low-latency routers. A layered configuration pairing a fine-tuned sub billion-parameter model as router with a larger SLM for conversational response generation is shown to be deployable on mid-range edge hardware and more efficient than delegating both responsibilities to a single model. The findings show that SLMs can support practical AI service orchestration in virtual worlds and the work contributes an evaluated architecture for scalable, extensible, and edge-supported AI interaction, enabling virtual agents become access points to distributed generative AI services.

The development of embodied Intelligent Virtual Agents (IVAs) that have cognitive capabilities in real-time interactive virtual environments remains a challenge, even with today's advancements in technology. Existing architectures are often focused on either the implementation of low-level reactive control systems that are constrained by commercial game engines, or high-level representations of reasoning models that can be difficult to implement in virtual worlds. This paper builds on that notion and proposes a modular cognitive architecture for deploying embodied IVAs. This architecture builds on existing, pre-established frameworks such as the Sense-Think-Act paradigm and the Belief-Desire-Intention cognitive model, among others, and aims to provide a reusable implementation-oriented framework as a template for deploying IVA "brains" in interactive 3D computing systems. The proposed architecture contributes by providing a modular, implementation-oriented framework for the deployment of embodied, cognitive-capable IVAs and bridges the gap between high-level agent reasoning models with real-time embodied execution, for scalable, adaptive, and explainable agents in complex interactive virtual environments.

Deploying lightweight Large Language Model (LLM) agents on edge servers can reduce latency and move agentic services closer to users, but resource-constrained edge models often struggle with long-horizon tasks that require persistent memory, subgoal tracking, and reflection. Fine-tuning edge models after deployment is costly and difficult to scale across heterogeneous nodes, while purely local memory leaves agents with isolated experience and growing prompt context. We propose \textsc{CoMIC}, a parameter-update-free cloud-edge framework for Collaborative Memory and Insights Circulation. \textsc{CoMIC} follows a \textit{Centralized Reflection, Decentralized Execution} design: edge agents execute locally using subgoal-oriented hierarchical memory and selective re-expansion of relevant histories, while a cloud-side LLM critic asynchronously evaluates completed trajectories, filters reusable experience, and aggregates cross-agent guidance keyed by semantic subgoal identifiers. Across five long-horizon agent tasks spanning symbolic planning and text interaction, \textsc{CoMIC} improves progress rate and action grounding for weak edge agents and yields task-dependent success-rate gains without updating model parameters.