Downstream-Aware Context Selection for Online In-Context Reinforcement Learning

LLM agents increasingly improve at inference time by accumulating experience in context rather than by updating parameters. This process is often described as in-context reinforcement learning (ICRL). Whether in-context learning (ICL) can actually play the role of RL, however, has not been tested. We study this question in its simplest form, direct ICRL, where the model conditions directly on raw trajectory-reward pairs, and ask whether the reward acts as a learning signal. Through controlled experiments on four benchmarks across six models, we find that the reward is read, but its effect is small: flipping, randomizing, or removing the reward leaves the improvement curve almost unchanged, and this holds even under meta-prompts that explicitly instruct the model to explore, exploit, or reason over rewards. Trajectories drive improvement, but not through their semantic content: shuffled or corrupted trajectories work as well as real ones. These patterns closely mirror those known in ICL, suggesting that direct ICRL is better understood as a special case of ICL than as inference-time RL. This reframing has implications for agent memory design: ICL factors such as input distribution and demonstrations may matter more than RL elements such as reward shaping and exploration.

In-context reinforcement learning (ICRL) enables agents to adapt to new tasks without parameter updates, relying on memory to retain what they learn from experience. For agents operating continually, existing approaches using memory trade off bounded cost against access to past experience. Approaches using growing memories, such as full-history attention and accumulating summaries, incur storage and per-decision costs that increase with task length. Fixed-size memories bound storage but restrict access: sliding windows discard older steps, while recurrent networks compress even recent interactions into a hidden state. We introduce Recurrent Summary Memory (RSM), a Transformer policy that attends exactly to a short working buffer of recent interactions and carries a fixed-capacity summary of earlier experience. When the buffer fills, RSM rewrites the summary from its previous contents and the buffer, then clears the buffer, so deployment memory and per-decision cost stay $O(1)$ in task length. On long-running partially observable tasks, frozen RSM policies sustain their adapted performance for eight times the training horizon with about 1% of full-history memory, ending ahead of every evaluated baseline while growing memories deteriorate. When the task configuration changes mid-run, RSM re-adapts better than growing and recurrent memories. Clearing the summary or blocking the policy's access to it removes its benefit, while swapping in another task's summary steers behaviour towards that task. Together, these results show that our fixed-capacity summary can sustain in-context adaptation far beyond the training horizon.

In-context reinforcement learning (ICRL) has emerged as an effective paradigm for test time adaptation to unseen tasks without parameter updates. However, existing ICRL methods can exhibit brittle and unstable adaptions, and the mechanisms underlying such adaptions remain poorly understood. We provide a policy-gradient view of ICRL and argue that relying on trajectory-level return feedback can lead to high-variance updates when test time rollout is limited. Motivated by the actor--critic principle, we propose Context Value Informed ICRL (CV-ICRL), which equips the in-context policy with an explicit context value: the expected discounted return conditioned on the current state and accumulated interaction context. CV-ICRL trains a value head and writes its prediction back into the context as a value token, enabling TD-style return targets for lower-variance policy updates. Experiments on the Dark Room, Minigrid, and Procgen testbeds show that CV-ICRL substantially improves the stability of test time adaptation and achieves higher returns across tasks and environments. Code and data are available at https://github.com/Bluixe/CV-ICRL .