Reproducible Evaluation as the Substrate for Safe Prompt Compression in Production Agents

Long-horizon agents require context compression to manage growing interaction histories. Compression quality, however, is ultimately determined by downstream execution. Existing prompt-adaptation methods infer compression errors by comparing full-context and compressed trajectories. Such comparisons cannot isolate individual compressions and are confounded by agent stochasticity. We first find that compression degrades reliability before solvability. Using matched counterfactual continuations that compare execution from the same agent state with versus without compression, we further show that severe degradation concentrates at isolated compression events. Motivated by this finding, we propose PAIR (Prompt Adaptation using Interventional Rollouts) for adapting structured compression prompts. PAIR identifies individual compressions that degrade subsequent execution, diagnoses their effects, and revises the relevant sections of a fixed compression template. PAIR achieves the strongest cross-run reliability among compressed methods in every main benchmark-scope combination, consistently exceeding the competing prompt-adaptation baseline. Without modifying the downstream agent, PAIR brings compressed execution close to the no-compression baseline and sometimes numerically exceeds it.

Tool-using language-model agents are governed not only by task prompts but also by persistent system-side instructions that specify tools, arguments, policies, execution protocols, and recovery. Compressing these agent control contexts (ACCs) can reduce input cost and context use, yet existing prompt-compression evaluations do not reveal whether the resulting control remains operationally reliable. We introduce CompressAgent, an environment-verified benchmark for ACC compression across nine independently constructed ACCs, three task families, three fixed Qwen API model identifiers, six retained-context budgets, and 15,525 runs. We uncover a nonlinear, method-dependent reliability frontier. At 75% retained context, generic rewriting and section-based compression achieve 92.7% and 92.4% success, close to the 93.8% full-context baseline. Between 50% and 35%, methods diverge sharply; at 35%, section-based, obligation-aware, and generic rewriting achieve 47.0%, 39.0%, and 19.9%. At retained-context budgets from 25% to 10%, executable protocols become fragile. Reliability also varies substantially across ACCs, making universal compressor rankings inappropriate and motivating per-context qualification. Failure analysis shows that compression primarily surfaces as tool-execution and action-parsing errors. These findings recast ACC compression from token reduction into a runtime-reliability problem that must be evaluated through executable outcomes.

The economics of prompt compression depend not only on reducing input tokens but on how compression changes output length, which is typically priced several times higher. We evaluate this in a pre-registered six-arm randomized controlled trial of prompt compression on production multi-agent task-orchestration, analyzing 358 successful Claude Sonnet 4.5 runs (59-61 per arm) drawn from a randomized corpus of 1,199 real orchestration instructions. We compare an uncompressed control with three uniform retention rates (r=0.8, 0.5, 0.2) and two structure-aware strategies (entropy-adaptive and recency-weighted), measuring total inference cost (input+output) and embedding-based response similarity. Moderate compression (r=0.5) reduced mean total cost by 27.9%, while aggressive compression (r=0.2) increased mean cost by 1.8% despite substantial input reduction, consistent with small mean output expansion (1.03x vs. control) and heavy-tailed uncertainty. Recency-weighted compression achieved 23.5% savings and, together with moderate compression, occupied the empirical cost-similarity Pareto frontier, whereas aggressive compression was dominated on both cost and similarity. These results show that "compress more" is not a reliable production heuristic and that output tokens must be treated as a first-class outcome when designing compression policies.