Dynamic Tool Output Compression for Adaptive Context Management

Abhay Chaturvedi, Shreya Bhattacharya, Rashmika Gopalkrishnan, and Peter van der Putten presented their work on "DTOC: Dynamic Tool Output Compression for Adaptive Context Management in AI Agents" at Discovery Science, October 5-9, 2026, in Mainz, Germany. This research addresses the challenge of managing growing context in AI agents without relying on irreversible, lossy compression methods or memory management disconnected from the specific task.

This paper introduces Dynamic Tool Output Compression (DTOC) as a new method to manage growing AI context, unlike prior approaches that used irreversible, lossy compression.