# ARSM: Auto-Regressive State Machine for Agentic Reasoning Compression

arXiv: https://arxiv.org/abs/2609.32852 · HTML: https://mlsanity.com/paper/2609.32852/

## 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 15 of its 35 references that are in the map.
- First posted on arXiv 26 Sep 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 / [Agent memory systems](https://mlsanity.com/agents/agent-memory-systems/)

## Builds on (most cited first, 15 of 15)

- [HotpotQA: A Dataset for Diverse, Explainable Multi-hop Question Answering](https://mlsanity.com/paper/1809.09600/) (2018)
- [Qwen2 Technical Report](https://mlsanity.com/paper/2407.10671/) (2024)
- [Search-R1: Training LLMs to Reason and Leverage Search Engines with Reinforcement Learning](https://mlsanity.com/paper/2503.09516/) (2025)
- [MemGPT: Towards LLMs as Operating Systems](https://mlsanity.com/paper/2310.08560/) (2023)
- [GLM-5: from Vibe Coding to Agentic Engineering](https://mlsanity.com/paper/2602.15763/) (2026)
- [MEM1: Learning to Synergize Memory and Reasoning for Efficient Long-Horizon Agents](https://mlsanity.com/paper/2506.15841/) (2025)
- [ACON: Optimizing Context Compression for Long-horizon LLM Agents](https://mlsanity.com/paper/2510.00615/) (2025)
- [AgentFold: Long-Horizon Web Agents with Proactive Context Management](https://mlsanity.com/paper/2510.24699/) (2025)
- [Agent-FLAN: Designing Data and Methods of Effective Agent Tuning for Large Language Models](https://mlsanity.com/paper/2403.12881/) (2024)
- [ReST meets ReAct: Self-Improvement for Multi-Step Reasoning LLM Agent](https://mlsanity.com/paper/2312.10003/) (2023)
- [Unlocking Context Constraints of LLMs: Enhancing Context Efficiency of LLMs with Self-Information-Based Content Filtering](https://mlsanity.com/paper/2304.12102/) (2023)
- [SWE-Pruner: Self-Adaptive Context Pruning for Coding Agents](https://mlsanity.com/paper/2601.16746/) (2026)
- [AttentionRAG: Attention-Guided Context Pruning in Retrieval-Augmented Generation](https://mlsanity.com/paper/2503.10720/) (2025)
- [ContextBudget: Budget-Aware Context Management for Long-Horizon Search Agents](https://mlsanity.com/paper/2604.01664/) (2026)
- [U-Fold: Dynamic Intent-Aware Context Folding for User-Centric Agents](https://mlsanity.com/paper/2601.18285/) (2026)

## Abstract (arXiv)

While Large Language Model (LLM)-based agents demonstrate strong capabilities in long-horizon tasks by interleaving reasoning with external environment interactions, the continuous accumulation of context rapidly creates a critical memory bottleneck. Existing memory compression methods rely on task-specific optimization or external auxiliary models, introducing significant computational overhead. Furthermore, the resulting compressed representations tend to lose structured relationships, leading to information dilution, attention collapse, and degraded decision consistency. To address these limitations, we propose Auto-Regressive State Machine (ARSM), a lightweight training-free framework that enables in-situ reasoning compression through structured state evolution. ARSM introduces two key components: (i) a trajectory abstraction mechanism that reorganizes interaction histories into compact Hypothesis-Action-Result (HAR) micro-chains; (ii) a dynamic state machine that regulates hierarchical memory through atomic operations and a compression-control parameter. These components are unified within an auto-regressive, self-compressive generation space, where each model output jointly performs external action execution and internal state updates. We evaluate ARSM on Webshop, Multi-Objective Multi-Hop QA, and SWE-Bench Lite datasets. Experimental results show that ARSM maintains the task performance while simultaneously reducing token consumption, offering a practical, cost-effective route toward scalable autonomous agents for long-horizon tasks.