Using Grounded Theory for Agent Behavior Analysis at Scale

Understanding agent behavior requires methods that scale to thousands of trajectories and surface new patterns in long, often unfamiliar tasks where pre-built classifiers fall short. We propose to bring grounded theory into agent trajectory analysis: a six-decade-old qualitative method from the social sciences, with a principled saturation criterion and an auditable trail from data to theory. We propose AutoTraceGT (Automated Trace analysis through Grounded Theory), the first multi-agent pipeline that automates grounded theory on agent trajectories. It iteratively performs open, axial, and theoretical coding until saturation, producing a behavioral taxonomy tailored to each task. Across six trajectory corpora, AutoTraceGT produces codebooks that recover 73-91 percent of the failure modes in human-annotated taxonomies and surface additional patterns that those taxonomies miss. The emergent theoretical narrative aligns with prior expert accounts. Used as a deductive feature space, the codebook outperforms zero-shot and few-shot LLM baselines on downstream failure prediction. These results suggest Grounded Theory offers a scalable analytic tool for ML researchers and agent developers studying what agents actually do.

Last Step Matters: Early Uncertainty Cannot Predict Failure in Long-Horizon Agents

Early failure prediction is important for long-horizon agents, as it enables timely intervention and can reduce inference and tool-use costs. Uncertainty quantification, such as verbal confidence and perplexity, offers a promising approach to detecting agent failures; however, it has not been explored whether these signals retain their discriminative power during the intermediate stages of long-horizon execution. We evaluate mainstream uncertainty signals on deep-research tasks and find that verbal confidence reliably distinguishes failures at trajectory completion, achieving a mean AUROC of 0.85, whereas all evaluated signals offer limited predictive value earlier in execution, with none exceeding a mean AUROC of 0.60 at 50% trajectory progress. We identify an underlying mechanism explaining this gap: path switching, where agents frequently abandon their current search direction in-trajectory, breaking the link between early signal and final outcome. These findings challenge the assumption that intermediate uncertainty can reliably guide early intervention. They also motivate a practical recommendation for agent harnesses in deep-research settings: use final-step confidence to decide whether to restart, an approach that our experiments find more effective than in-trajectory intervention.

Automata from Agent Traces: Failure and Next-Step Prediction

LLM-based agents execute multi-step tasks, but their behavioral structure remains opaque: long unstructured traces resist the safety auditing and runtime monitoring that deployment requires. Existing approaches operate per-trace or success-only, so they miss the cross-run topology that links next-step and failure prediction. To recover that shared structure, we collapse an entire trace corpus into a single, compact finite-state machine (FSM) that serves as a structural substrate for the otherwise unpredictable behavior of LLM agents. Across twelve public datasets, the FSMs are compact (7-43 states), replay held-out data at >=0.997 fitness with near-identical topology across splits, and build in milliseconds. This substrate addresses both prediction goals. For next-step prediction, FSM-state context outperforms Agent Workflow Memory on every ground-truth-matched dataset. For failure prediction, per-state behavioral features reach held-out AUROC up to 0.94, and an online monitor ranks failing runs above passing ones from a partial trace, triggering early stopping well before completion. Behavioral topology thus appears shaped more by the deployment harness than by the LLM, providing a model-agnostic structural primitive for safety auditing and runtime monitoring.