# Declarative Skills for AI Agents in Knowledge-Grounded Tool-Use Workflows

arXiv: https://arxiv.org/abs/2606.06923 · HTML: https://mlsanity.com/paper/2606.06923/

## Key facts

- Cited by 2 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 6 of its 24 references that are in the map.
- First posted on arXiv 5 Jun 2026.

## 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, 6 of 6)

- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [The Complexity of Decentralized Control of Markov Decision Processes](https://mlsanity.com/paper/1301.3836/) (2013)
- [Recursive Language Models](https://mlsanity.com/paper/2512.24601/) (2025)
- [τ-Knowledge: Evaluating Conversational Agents over Unstructured Knowledge](https://mlsanity.com/paper/2603.04370/) (2026)
- [Beyond IVR: Benchmarking Customer Support LLM Agents for Business-Adherence](https://mlsanity.com/paper/2601.00596/) (2026)

## Built on by (most cited first, 2 of 2)

- [SkillCoach: Self-Evolving Rubrics for Evaluating and Enhancing Agentic Skill-Use](https://mlsanity.com/paper/2607.01874/) (2026)
- [STAGE: Stateful Translation to Agentic Graph Execution with Policy-Scoped Context and Deterministic Control](https://mlsanity.com/paper/2608.22538/) (2026)

## Abstract (arXiv)

We study orchestration mechanisms for tool-using AI agents in realistic customer-service workflows over an unstructured knowledge base. We argue that declarative agents -- AI agents equipped with natural-language skill files appended to the system prompt -- are an effective orchestration paradigm. Concretely, we compare (i) a DeclarativeAgent that reads three domain-specific skill files at inference time and decides its own control flow, (ii) an ImperativeAgent based on a programmatic state machine with explicit phases, and (iii) an unscaffolded baseline agent modeled after the τ-Knowledge benchmark agent. Our ImperativeAgent is motivated by externalised-control inference as in Recursive Language Models and graph-based orchestration frameworks. We formalise the three agents as policy classes within a decentralised partially-observable Markov decision process and analyse their information-theoretic and structural properties; we then test the predicted differences empirically on five language models and two retrieval regimes. Our results show that retrieval quality is a dominant bottleneck for AI agents: when evidence is incomplete or skewed, all agents degrade substantially, and skill files cannot recover lost performance. Under high-quality retrieval, however, declarative skills consistently improve accuracy on procedural tasks and reduce orchestration errors, while the imperative state machine's brittleness does not reliably improve task success or compliance.