# Agentic System as Compressor: Quantifying System Intelligence in Bits

arXiv: https://arxiv.org/abs/2606.25960 · HTML: https://mlsanity.com/paper/2606.25960/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Agent memory systems, one of 16 directions in LLM agents and tool use.
- Builds on 11 of its 29 references that are in the map.
- First posted on arXiv 24 Jun 2026.

## Placed in

- LLM agents and tool use / [Agent memory systems](https://mlsanity.com/agents/agent-memory-systems/)

## Builds on (most cited first, 11 of 11)

- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [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)
- [Tree of Thoughts: Deliberate Problem Solving with Large Language Models](https://mlsanity.com/paper/2305.10601/) (2023)
- [Beyond the Imitation Game: Quantifying and extrapolating the capabilities of language models](https://mlsanity.com/paper/2206.04615/) (2022)
- [SWE-agent: Agent-Computer Interfaces Enable Automated Software Engineering](https://mlsanity.com/paper/2405.15793/) (2024)
- [Language Modeling Is Compression](https://mlsanity.com/paper/2309.10668/) (2023)
- [Compression Represents Intelligence Linearly](https://mlsanity.com/paper/2404.09937/) (2024)

## Abstract (arXiv)

Large language models are turning from isolated predictors into agentic systems: they call tools, retrieve evidence, obey environment constraints, use verifiers, and complete tasks through search and multi-turn interaction. We adopts an analytical viewpoint based on "compression is intelligence": under a fixed task distribution, interface, and compute budget, a stronger agentic system lets a target object be reconstructed with fewer bits. We operationalize the measure with arithmetic coding, seed coding, and a fallback, and evaluate it in five settings: reversed text, chess moves, protein sequences, retrieval-augmented question answering, and semantic story compression; in all of them agentic components reduce codelength. These small, controlled experiments cover component types typical of real agentic systems, show that codelength can analyze how components, observers, and budgets change residual uncertainty, and offer guidance for evaluating real agent systems.