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Agentic Plan Caching: Test-Time Memory for Fast and Cost-Efficient LLM Agents

The paper proposes Agentic Plan Caching (APC), a novel test-time memory system that extracts, adapts, and reuses structured plan templates from previous agent executions to significantly reduce the cost and latency of LLM-based agents while maintaining performance.

Original authors: Qizheng Zhang, Michael Wornow, Gerry Wan, Kunle Olukotun

Published 2026-01-28
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Original authors: Qizheng Zhang, Michael Wornow, Gerry Wan, Kunle Olukotun

Original paper licensed under CC BY 4.0 (http://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer

Imagine you are a highly skilled but very expensive personal assistant (the AI Agent) who helps you solve complex problems, like analyzing financial reports or navigating a website.

Every time you ask this assistant a question, they don't just give you an answer immediately. Instead, they go through a two-step process:

  1. Planning: They think hard about how to solve the problem (e.g., "First, I need to find the total assets, then the liabilities..."). This step uses a lot of their brainpower and costs a lot of money.
  2. Acting: They actually go do the work based on that plan.

The Problem: Wasting Money on "Thinking"

The paper points out a big inefficiency: Even if you ask a slightly different question (e.g., "What's the ratio for Company A?" vs. "What's the ratio for Company B?"), the assistant often re-thinks the entire strategy from scratch. They ignore the fact that the "thinking" part (the plan) is almost identical for both tasks. They just swap out the company name.

Existing methods to save money (like "Semantic Caching") are like a librarian who only remembers exact book titles. If you ask for "The Great Gatsby," they find it. But if you ask for "The book about the green light," they might miss it, or if you ask for "The Great Gatsby (2024 edition)," they might think it's a totally different book. They are too rigid for these complex, changing tasks.

The Solution: Agentic Plan Caching (APC)

The authors propose a new system called Agentic Plan Caching (APC). Think of this as giving your assistant a "Recipe Book" instead of just a memory of past conversations.

Here is how it works, using a cooking analogy:

  1. The "Recipe" Extraction (The Chef's Secret):
    When your assistant successfully solves a problem (like calculating a financial ratio), the system doesn't just save the final answer. It looks at the steps the assistant took and strips away the specific details (like "Costco" or "2019").

    • Original Plan: "Find the total current assets for Costco in 2019."
    • Saved "Recipe" (Template): "Find the total current assets for [Company Name] in [Year]."
  2. The "Keyword" Search:
    When you ask a new question, the system doesn't try to match the whole sentence. Instead, a small, cheap helper (a "lightweight model") pulls out the keyword or the main goal, like "working capital ratio." It uses this keyword to look up the right "Recipe" in the book.

  3. The "Adaptation":
    If the system finds a matching recipe, it doesn't call the expensive, super-smart assistant to think again. Instead, it takes the saved "Recipe" and a small, cheap assistant fills in the blanks with your specific details (e.g., swapping "Costco" for "Walmart").

    • Result: You get a custom plan instantly, without paying for the expensive "thinking" part.

Why This is Better

The paper tested this system on five different types of real-world tasks (like financial analysis and math problems) and found:

  • It's Cheaper: It cut the cost of running these agents by about 50%. You stop paying for the expensive "thinking" every single time.
  • It's Faster: It reduced the waiting time by about 27%.
  • It's Accurate: It didn't make the assistant dumber. The results were 96.6% as good as if the assistant had thought through every problem from scratch.

The "Cold Start" Catch

The paper notes one limitation: When you first start using this system, the "Recipe Book" is empty. The assistant has to do the expensive thinking from scratch for the first few tasks to write down the recipes. This is called the "Cold Start." However, once the book is filled with recipes, the system becomes incredibly efficient.

Summary

In short, Agentic Plan Caching is like teaching an AI to stop reinventing the wheel. Instead of asking a genius to design a new car every time you need to drive to the store, you give them a standard car blueprint (the plan) and just tell them to change the color (the context). This saves a massive amount of time and money while still getting you to the store safely.

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