Context Compression Changes What Your Model Actually Sees
When your API costs spike and someone suggests "just compress the context," the pitch sounds clean: feed fewer tokens in, pay less, get equivalent output. LLMLingua benchmarks show 20x compression on math reasoning with only 1.5% accuracy loss. What's not to like?
The problem is that those benchmarks measure what the compressed context scores on clean, curated test sets. They don't measure what happens when your agent quietly drops the constraint it was given three turns ago, or resolves a pronoun to the wrong entity, or confabulates an exact file path because the original tool output was summarized away. Context compression doesn't just reduce tokens — it changes what your model actually sees. And the gaps between the original context and the compressed version are reliably where your system will fail.
