arXiv AI By Yuetong Liu, Zhehao Zhou, Yitong Zhang, Haorui Chen, Jia Li

Tools Need Not Speak in Text: Latent Context Compression for Agents

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The paper introduces Coca-Cola, a continuous latent context compression model that transforms raw tool outputs into latent tokens for LLM agents, bypassing the need for explicit text representation. By embedding these latent tokens into the agent’s input space and employing Action‑Preserving Training, the method ensures that decision‑critical information is retained while reducing token consumption by 70.01%–89.24%. Experiments on web‑search agents across multiple QA benchmarks demonstrate significant reductions in runtime (24.45%–55.97%) and consistent improvements in task performance.

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