# Demand-Driven Context: A Methodology for Building Enterprise Knowledge Bases Through Agent Failure

arXiv: https://arxiv.org/abs/2603.14057 · HTML: https://mlsanity.com/paper/2603.14057/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reasoning for agents, planning and code, one of 17 directions in LLM reasoning.
- Builds on 6 of its 11 references that are in the map.
- First posted on arXiv 14 Mar 2026.

## Placed in

- LLM reasoning / [Reasoning for agents, planning and code](https://mlsanity.com/lr/reasoning-for-agents-planning-and-code/)
- 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, 6 of 6)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [ExpeL: LLM Agents Are Experiential Learners](https://mlsanity.com/paper/2308.10144/) (2023)
- [Agentic Context Engineering: Evolving Contexts for Self-Improving Language Models](https://mlsanity.com/paper/2510.04618/) (2025)
- [Towards Enterprise-Ready Computer Using Generalist Agent](https://mlsanity.com/paper/2503.01861/) (2025)
- [Agent-in-the-Loop: A Data Flywheel for Continuous Improvement in LLM-based Customer Support](https://mlsanity.com/paper/2510.06674/) (2025)

## Abstract (arXiv)

Large language model agents demonstrate expert-level reasoning, yet consistently fail on enterprise-specific tasks due to missing domain knowledge -- terminology, operational procedures, system interdependencies, and institutional decisions that exist largely as tribal knowledge. Current approaches fall into two categories: top-down knowledge engineering, which documents domain knowledge before agents use it, and bottom-up automation, where agents learn from task experience. Both have fundamental limitations: top-down efforts produce bloated, untested knowledge bases; bottom-up approaches cannot acquire knowledge that exists only in human heads. We present Demand-Driven Context (DDC), a problem-first methodology that uses agent failure as the primary signal for what domain knowledge to curate. Inspired by Test-Driven Development, DDC inverts knowledge engineering: instead of curating knowledge and hoping it is useful, DDC gives agents real problems, lets them demand the context they need, and curates only the minimum knowledge required to succeed. We describe the methodology, its entity meta-model, and a convergence hypothesis suggesting that 20-30 problem cycles produce a knowledge base sufficient for a given domain role. We demonstrate DDC through a worked example in retail order fulfillment, where nine cycles targeting an SRE incident management agent produce a reusable knowledge base of 46 entities. Finally, we propose a scaling architecture for enterprise adoption with semi-automated curation and human governance.