๐ค AI Summary
This work addresses the performance limitations of small language models (SLMs) when directly substituting large language models (LLMs) in real-world business tasks, which hinder cost-effective deployment at scale. The authors propose an automated harness optimization framework that externalizes common task-specific challenges into modular components and employs a meta-agent to autonomously discover effective adaptation strategies, establishing the first systematic mapping from failure patterns to harness refinement. By integrating failure trajectory analysis, tailored instructions, tool augmentation, automated orchestration, and cross-family SLM adaptation, the approach achieves substantial performance gains across seven business tasks and three SLM families: 16 out of 21 experimental settings show significant improvement, with seven fully closing the performance gap to LLMs, and the best case recovering 89.7% of LLM performance at only 4% of the computational cost.
๐ Abstract
Frontier LLM agents are automating many business tasks, but their high inference cost makes large-scale deployment unsustainable. Small language models (SLMs) offer a cheaper alternative, yet they typically fall short when swapped into a harness designed for a frontier LLM. We show that for many routine business tasks, SLM agents can match LLM performance at 90% lower cost, when paired with an adapted harness that can be automatically discovered by a meta agent. The key insight is that much of the task difficulty is shared across instances and can be lifted from the model into the harness via tailored instructions, tools, and orchestration loops. To study this systematically, we create a framework that maps agent failure modes to harness adaptation strategies, and build a harness optimizer that automatically discovers effective adaptations from failure trajectories. Across seven business-oriented agentic tasks and three SLM families, we found optimized harnesses significantly improve performance on 16 of 21 task-SLM pairs, with seven pairs closing the SLM-LLM performance gap and the best SLM agent recovering 89.7% of LLM performance at 4% of the cost. Our analysis further shows that adaptation works best for tasks with more repetitive workflows and for SLMs with sufficient base capabilities. Together, these results suggest that harness adaptation can expand the practical deployment range of SLM agents in routine business tasks.