Not All Turns Are Equally Hard: Adaptive Thinking Budgets For Efficient Multi-Turn Reasoning in Agents

As LLM reasoning performance plateaus, improving inference-time compute efficiency is crucial to mitigate overthinking and long thinking traces even for simple queries. Prior approaches including length regularization, adaptive routing, and difficulty-based budget allocation primarily focus on single-turn settings and fail to address the sequential dependencies inherent in multi-turn reasoning. In this work, we formulate multi-turn reasoning as a sequential compute allocation problem and model it as a multi-objective Markov Decision Process. We propose TAB: Turn-Adaptive Budgets, a budget allocation policy trained via Group Relative Policy Optimization (GRPO) that learns to maximize task accuracy while respecting global per-problem token constraints. Consequently, TAB takes as input the conversation history and learns to adaptively allocate smaller budgets to easier turns and save appropriate number of tokens for the crucial harder reasoning steps. Our experiments on diverse agentic benchmarks demonstrate that TAB achieves a superior accuracy-cost tradeoff saving up to 35% tokens and reducing latency up to 30% while maintaining accuracy over static and off-the-shelf LLM budget baselines. Further, for systems where a plan of all turns is available apriori, we propose TAB All-SubQ, a budget allocation policy that budgets tokens based on the conversation history and entire plan saving up to 40% tokens over baselines.