ARSM: Auto-Regressive State Machine for Agentic Reasoning Compression

Xiafeng Man, Siyuan Ye, Xiaosong Ma

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…