History-aware tool retrieval cuts LLM agent token costs by 80 percent while boosting accuracy

TRACER indexes tool-call sequences in a trie and learns to blend usage memory with semantic similarity, outperforming full-registry selection across most model-environment pairs.

Big Tech
Tanish Kher · Sarvesh DK · Abedelkadir Asi · Sparsha Chennarayapatna Sundaresh · Dezhi Hong

Microsoft

Research Digest··3 min read
The authors propose TRACER, a retrieval front-end that prunes tool registries to a small candidate set by exploiting the sequential nature of tool calls in multi-turn agent tasks.

They built TRACER, which indexes observed tool-call sequences in a trie structure (full-prefix conditioning).

Why this paper

From Microsoft · Part of Agent Harness Optimization, now 143 papers

In one line

TRACER improves tool-selection accuracy and reduces token usage by using a trie of past call sequences to retrieve tools.

What we could check

  • ·No code link found
  • ·No weights link found
  • ·No dataset link found
  • ·No compute details found
  • ✓Limitations stated by the authors (2 noted)
  • ✓Reports numbers on named benchmarks (2 benchmarks)

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Research Digest

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