TRACER: Trajectory-Aware Tool Retrieval for LLM Agents

Tanish Kher, Sarvesh DK, Abedelkadir Asi, Sparsha Chennarayapatna Sundaresh, Dezhi Hong

Modern agents select tools from registries, but exposing entire registries incurs high token costs and can impair selection as they grow. We present TRACER, a retrieval front-end that indexes observed tool-call sequences in a trie and ranks continuations using a learned blend of empirical and contextual priors. On a mixed retail-and-telecom $τ^2$ environment, TRACER improves GPT-5.4's tool-selection accuracy by 4.7 points while reducing input tokens per step by 80%, exposing just 5 of 128 tools. In autonomous full-turn execution, it matches GPT-5.4's full-registry task success with 61% fewer input tokens per step. Across six environments and four models, TRACER improves tool-selection accuracy over full-registry selection in 21 of 24 model-environment pairs, with average gains of 6 to 10 points; the three exceptions trail by at most 2.2. We analyze failures in both regimes to identify directions for future work.