
Agentic Context Management: Solving Agent Memory and Cost by Treating Them as Lifecycle and Architecture Problems
Most agent failures in production aren't reasoning failures — they're context management failures. This paper argues that treating memory as a simple storage-and-retrieval problem misses the real challenge: actively managing what an agent holds in its context window across its entire lifecycle, from deciding what to remember, to consolidating and forgetting, to staying within token budgets across multi-user organizational hierarchies. If you're building production agents that break down after a few turns or burn through tokens rapidly, this framing reorients how you should architect your solution.
Takeaways3
- Token cost and context decay are architectural problems, not retrieval problems — they require lifecycle-aware memory management.
- Different data types (conversation history, tool outputs, user facts) need different storage strategies, not a single vector store.
- Production agents must manage context not just per-user but across organizational scope hierarchies with consolidation and provenance tracking.





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