Learning Which Device to Call: Online Tool Grounding for LLM Agents in IoT

Tool-using large language model (LLM) agents often face a fundamental tension between answer quality and execution cost. Fixed workflows are stable but inflexible, while free-form multi-step reasoning methods such as ReAct may improve task performance at the expense of excessive tool calls, longer trajectories, higher token consumption, and increased latency. In this paper, we study agent orchestration as an explicit decision problem rather than leaving it entirely to prompt-level behavior. We propose a utility-guided orchestration policy that selects among actions such as respond, retrieve, tool call, verify, and stop by balancing estimated gain, step cost, uncertainty, and redundancy. Our goal is not to claim universally best task performance, but to provide a controllable and analyzable policy framework for studying quality-cost trade-offs in tool-using LLM agents. Experiments across direct answering, threshold control, fixed workflows, ReAct, and several policy variants show that explicit orchestration signals substantially affect agent behavior. Additional analyses on cost definitions, workflow fairness, and redundancy control further demonstrate that lightweight utility design can provide a defensible and practical mechanism for agent control.

As LLM agents increasingly depend on diverse external services such as search engines, databases, and connectors, agent harnesses face a fundamental tool-selection challenge: acquiring too few tools leaves the task under-informed, while too many adds cost, context load, and privacy exposure. Routers and retrievers can rank candidate tools by relevance, but a ranking alone does not determine how many are worth selecting. Existing approaches leave acquisition under heterogeneous costs unaddressed. We formulate this decision as cost-aware marginal decision-focused stopping (CAM-DF) over ranked tool prefixes, with CAM-DF-lite as a compact interpretable variant. We train directly on the offline gap between stopping now and the best continuation: its sign labels the decision, its magnitude weights each error by the payoff at stake. We prove this objective is Bayes-aligned with the stopping target and that score-only rules are suboptimal under heterogeneous costs. We evaluate on 1,343 tasks across five tool-use domains. On $τ$-bench Retail, CAM-DF attains the highest payoff among deployable methods, with gains over a predict-then-threshold baseline across all five ranking sources and two cost regimes. Our approach is state-of-the-art under heterogeneous costs and high cost pressure, with larger gains under weaker rankings. In live execution, CAM-DF exposes the agent to 37% fewer tools than full access while maintaining comparable task success. The CAM-DF family is a lightweight pre-execution plugin that turns existing tool rankings into lower-cost acquisition decisions without fine-tuning the underlying LLM.

Large language model (LLM) agents excel at solving complex long-horizon tasks through autonomous interaction with environments. However, their real-world deployment faces a fundamental device--cloud dilemma: on-device models are efficient but often brittle, while cloud models are stronger but costly in computation. State-of-the-art LLM device--cloud routers usually make coarse task-level decisions, which cannot adapt to the changing difficulty of multi-step agent interactions. To address this issue, we present Hera, a step-level device--cloud LLM agent coordinator for long-horizon tasks achieving a strong performance--cost Pareto frontier. Hera adopts a novel two-stage training paradigm: (1) imitation learning for cold-start, followed by (2) reinforcement learning that jointly optimizes task success and cloud usage efficiency. The first stage casts step-level routing as a supervised classification problem: the device agent is replayed on cloud trajectories, with each state labeled by the agreement between device and cloud actions. In the second stage, we perform cost-aware reinforcement learning by grouping identical states across trajectories and updating Hera with labels favoring higher expected return and fewer future cloud calls. We evaluate Hera on ALFWorld, WebShop, and AppWorld, where it consistently outperforms prior methods, achieving 92.5% of the cloud-only success rate with cloud use in only 46.3% of steps.