Do I Need the Cloud? Uncertainty-Aware Step-Level Handoff for Small Language Model Agents

Efficient agentic systems should incur expensive frontier-model costs only on decisions where a cheaper local model is likely to fail. Existing LLM cascades usually route whole queries before execution, but task difficulty shifts mid-trajectory - after flaky tool calls, truncated observations, or compounding local errors - making pre-execution routing brittle. We introduce \textbf{R2V-Agent}, a risk-calibrated SLM-LLM routing framework for interactive agents. R2V combines four components: a distilled small language model (SLM) policy, a stronger teacher LLM, a lightweight process verifier that scores candidate actions at each step, and a calibrated step-level router. The router is our central contribution: after the SLM is trained, it estimates residual failure risk at each step and escalates only when teacher intervention is warranted. To make the routing problem well-defined, we first train a stable local SLM using a standard offline pipeline: behavioral cloning (BC) on teacher trajectories, followed by verifier-guided Direct Preference Optimization (DPO) with consistency regularization. The router is then trained on this fixed policy's residual failures using Brier-calibrated probability estimation and a Conditional Value-at-Risk (CVaR)-constrained objective that penalizes worst-case failures across perturbation seeds. Across HumanEval+, TextWorld, and TerminalBench with four SLM backbones, R2V improves the reliability-cost frontier: it achieves $94.3\%$ HumanEval+ success with $0.60\%$ LLM escalation, recovers TextWorld from $64.6\%$ SLM-only success to $98.2\%$ at $41.7\%$ escalation, and reaches $93.3\%$ TerminalBench success at $33.9\%$ LLM calls, roughly half the heuristic-router cost.

Small language models (SLMs) offer a promising foundation for on-device agents through low-latency, resource-efficient inference, yet limited reasoning and planning capabilities constrain their performance on long-horizon tasks requiring multi-step interaction with the environment. Step-level collaboration between SLMs and larger cloud-hosted models can bridge this gap, but identifying states that warrant cloud assistance remains challenging: the contribution of each cloud call is entangled with subsequent actions and can be assessed only from the final task outcome. Compounding this challenge, the SLM must balance two competing objectives: maximizing task success and minimizing cloud calls. To address this, we propose Sibyl, an algorithm that trains SLM agents to selectively consult cloud models at the step level and internalize their guidance for subsequent decisions, achieving strong task performance with minimal cloud reliance. Sibyl follows a three-stage training pipeline that (1) builds a robust base policy through consultation-free self-evolving reinforcement learning (RL); (2) cold-starts consultation behavior via decisive-disagreement state mining; and (3) jointly optimizes consultation decisions and guidance internalization through consultation-aware RL. Experiments on ALFWorld and WebShop demonstrate that Sibyl, using only a 0.6B-parameter model, outperforms state-of-the-art baselines, including agent training and routing methods, by 95.2% and 80.4% in success rate while averaging only 0.8 and 3.9 cloud calls per trajectory, respectively.

LLM agents following the ReAct paradigm are promising enablers of complex multi-step tasks, including multi-hop question answering, code generation, and control of physical AI systems. Yet, when deployed at the edge, they must tightly manage their reasoning budget while remaining reliable and deferring to a cloud-side model only when local uncertainty is too high to act safely. We propose Think Short, Defer Smart (TSDS), a framework that synergistically integrates a lightweight convergence probe, which halts on-device reasoning once the intended action has stabilized, with a perplexity-based deferral rule that escalates uncertain actions to a cloud-side model. Both mechanisms are jointly calibrated on end-to-end episode trajectories via a multi-objective Learn-Then-Test (LTT) procedure, providing simultaneous finite-sample guarantees on expected episode reward and cloud-call rate. We evaluate TSDS on four ReAct benchmarks spanning arithmetic reasoning (GSM8K), multi-hop question answering (HotpotQA), code generation (MBPP), and multi-step embodied planning (household robot), and compare against thought-calibration-only and calibrated-deferral-only standalone baselines. TSDS reduces per-episode thinking compute by 43%-73% over deferral-only baselines across HotpotQA, MBPP, and the household robot task, while maintaining certified reward and cloud-call rate guarantees.