The Compaction Cliff in Long-Running AI Agent Memory

A safety rule and an episodic log compete for the same tokens in an AI agent's context. When the budget overflows, both are summarized at the same rate; only the rule needs exact wording to remain enforceable. On 20 production agent configurations, Claude Code's /compact prompt on Sonnet 4.6 preserves 53\% of safety rules after one compaction round and 10\% after five. We name this the Compaction Cliff. We address it with Knowledge Triage, a framework that classifies each line of an agent's knowledge base by type and routes each type through its own retention policy. Three deterministic operators implement this triage across the three context-management operations: TypeCompact rewrites items in place under per-type fidelity, TypeDecompose partitions a topic too large to compact safely, replicating in-scope safety rules across partitions, and TypeRetrieve fetches items from external storage with in-scope rules pinned ahead of relevance. On five public corpora, TypeCompact preserves 2--4$\times$ more safety rules than the strongest single-shot LLM compactor at every ratio, with 96\% recall over five rounds. TypeDecompose reaches 0\% locality violations against 93\% under uniform partitioning. TypeRetrieve reaches 100\% recall@50 against 73\% for the best single-shot LLM retriever. On three downstream behavioral benchmarks, we outperform the production Sonnet compactor on medical compliance (paired McNemar $p < 10^{-8}$ on preservation, $N = 200$), the full-policy and hierarchical baselines on retail task pass rate ($p < 0.01$, $N = 115$), and the hierarchical compaction on the airline domain ($p = 0.024$). We release AgentArtifactCorpus (396{,}934 agent configurations from 54{,}628 public GitHub repositories), the classifier, and the reference implementation.

What to Keep, What to Forget: A Rate--Distortion View of Memory Compaction in LLMs and Agents

Large language models, and the agents built on them, spend an ever-growing share of their compute and memory on remembering: caching attention keys and values, carrying long prompts, maintaining recurrent state, and storing what happened in previous turns and sessions. Because none of this memory is free, four largely separate research communities have each learned to compact it. They evict or quantize the KV cache, prune or distill prompts, bound architectural state, and consolidate agent memory. We argue that these are instances of one problem: a rate--distortion decision about what context-derived information to retain versus discard, at what fidelity, under a resource budget, so as to preserve downstream task utility. We make this lens precise with a single compaction objective and a layer-agnostic lower bound, use it to build a seven-axis taxonomy that classifies methods from across the stack uniformly, and use it to transfer mechanisms between layers that have never been connected, from serving-stack KV management to agent long-term memory. Two patterns hold across the survey. At every layer the signal that decides what to keep is attention magnitude or recency, and it fails in the same way everywhere, by discarding, before the query is known and with no way to undo it, information the query later needs. And while compression is measured carefully on single-turn long context, the repeated compaction that agents actually perform is almost never measured, and no benchmark holds one budget axis across all the layers at once. We turn both observations into a benchmark proposal, a small reference experiment, and a set of compaction-aware design principles, and we map the open problems.