# DICE: Dynamic In-Context Example Selection in LLM Agents via Efficient Knowledge Transfer

arXiv: https://arxiv.org/abs/2507.23554 · HTML: https://mlsanity.com/paper/2507.23554/

## Key facts

- Cited by 5 papers in the map (data through 14 Oct 2026).
- Placed in General LLM agent frameworks and benchmarks, one of 16 directions in LLM agents and tool use.
- Builds on 64 of its 72 references that are in the map.
- First posted on arXiv 31 Jul 2025.

## Placed in

- LLM agents and tool use / [General LLM agent frameworks and benchmarks](https://mlsanity.com/agents/general-llm-agent-frameworks-and-benchmarks/)

## Builds on (most cited first, 30 of 64)

- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Qwen3 Technical Report](https://mlsanity.com/paper/2505.09388/) (2025)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Representation Learning with Contrastive Predictive Coding](https://mlsanity.com/paper/1807.03748/) (2018)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Finetuned Language Models Are Zero-Shot Learners](https://mlsanity.com/paper/2109.01652/) (2021)
- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [Scaling Instruction-Finetuned Language Models](https://mlsanity.com/paper/2210.11416/) (2022)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [Gemma 2: Improving Open Language Models at a Practical Size](https://mlsanity.com/paper/2408.00118/) (2024)
- [Rethinking the Role of Demonstrations: What Makes In-Context Learning Work?](https://mlsanity.com/paper/2202.12837/) (2022)
- [Calibrate Before Use: Improving Few-Shot Performance of Language Models](https://mlsanity.com/paper/2102.09690/) (2021)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [ALFWorld: Aligning Text and Embodied Environments for Interactive Learning](https://mlsanity.com/paper/2010.03768/) (2020)
- [What Makes Good In-Context Examples for GPT-3?](https://mlsanity.com/paper/2101.06804/) (2021)
- [Fantastically Ordered Prompts and Where to Find Them: Overcoming Few-Shot Prompt Order Sensitivity](https://mlsanity.com/paper/2104.08786/) (2021)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Super-NaturalInstructions: Generalization via Declarative Instructions on 1600+ NLP Tasks](https://mlsanity.com/paper/2204.07705/) (2022)
- [ALFRED: A Benchmark for Interpreting Grounded Instructions for Everyday Tasks](https://mlsanity.com/paper/1912.01734/) (2019)
- [What learning algorithm is in-context learning? Investigations with linear models](https://mlsanity.com/paper/2211.15661/) (2022)
- [Learning To Retrieve Prompts for In-Context Learning](https://mlsanity.com/paper/2112.08633/) (2021)
- [Language Agent Tree Search Unifies Reasoning Acting and Planning in Language Models](https://mlsanity.com/paper/2310.04406/) (2023)
- [MetaICL: Learning to Learn In Context](https://mlsanity.com/paper/2110.15943/) (2021)
- [Information-theoretic analysis of generalization capability of learning algorithms](https://mlsanity.com/paper/1705.07809/) (2017)
- [In-context Vectors: Making In Context Learning More Effective and Controllable Through Latent Space Steering](https://mlsanity.com/paper/2311.06668/) (2023)
- [Selective Annotation Makes Language Models Better Few-Shot Learners](https://mlsanity.com/paper/2209.01975/) (2022)
- [OPT-IML: Scaling Language Model Instruction Meta Learning through the Lens of Generalization](https://mlsanity.com/paper/2212.12017/) (2022)
- [Demystifying Prompts in Language Models via Perplexity Estimation](https://mlsanity.com/paper/2212.04037/) (2022)

## Built on by (most cited first, 5 of 5)

- [Skill-R1: Agent Skill Evolution via Reinforcement Learning](https://mlsanity.com/paper/2605.09359/) (2026)
- [Generate, Filter, Control, Replay: A Comprehensive Survey of Rollout Strategies for LLM Reinforcement Learning](https://mlsanity.com/paper/2605.02913/) (2026)
- [OLIVIA: Online Learning via Inference-time Action Adaptation for Decision Making in LLM ReAct Agents](https://mlsanity.com/paper/2605.11169/) (2026)
- [Skill-CMIB: Multimodal Agent Skill for Consistent Action via Conditional Multimodal Information Bottleneck](https://mlsanity.com/paper/2605.08526/) (2026)
- [FrugalSOT - Frugal Search Over the Models](https://mlsanity.com/paper/2608.21621/) (2026)

## Abstract (arXiv)

Large language model-based agents, empowered by in-context learning (ICL), have demonstrated strong capabilities in complex reasoning and tool-use tasks. However, existing works have shown that the effectiveness of ICL is highly sensitive to the choice of demonstrations, with suboptimal examples often leading to unstable or degraded performance. While prior work has explored example selection, including in some agentic or multi-step settings, existing approaches typically rely on heuristics or task-specific designs and lack a general, theoretically grounded criterion for what constitutes an effective demonstration across reasoning steps. Therefore, it is non-trivial to develop a principled, general-purpose method for selecting demonstrations that consistently benefit agent performance. In this paper, we address this challenge with DICE, Dynamic In-Context Example Selection for LLM Agents, a theoretically grounded ICL framework for agentic tasks that selects the most relevant demonstrations at each step of reasoning. Our approach decomposes demonstration knowledge into transferable and non-transferable components through a causal lens, showing how the latter can introduce spurious dependencies that impair generalization. We further propose a stepwise selection criterion with a formal guarantee of improved agent performance. Importantly, DICE is a general, framework-agnostic solution that can be integrated as a plug-in module into existing agentic frameworks without any additional training cost. Extensive experiments across diverse domains demonstrate our method's effectiveness and generality, highlighting the importance of principled, context-aware demo selection for robust and efficient LLM agents.