Agentic Context Strategies for Multi-Format Document Understanding: When Should Language Models Use Tools?

Mansi Uniyal, Mukul Singh, Ryan Nadel


Abstract
Large language models face fundamental trade-offs when processing long documents: full context is expensive and may exceed limits, while RAG risks missing relevant information. We evaluate four context strategies across six frontier models on three document formats (Word, Excel, and PowerPoint). Our key finding: agentic tool-augmented approaches dramatically outperform passive strategies, with RAG+Tools achieving 46% accuracy vs 6% for RAG-only. Tool benefits are consistent across formats (+28-40 points) and models. We further show that (1) intelligent routing matters more than iteration count, (2) tools provide unique capability beyond reasoning loops, and (3) forcing active exploration matches providing context proactively. These results suggest tool augmentation is crucial for complex document QA.
Anthology ID:
2026.acl-industry.133
Volume:
Proceedings of the 64th Annual Meeting of the Association for Computational Linguistics (ACL 2026)
Month:
July
Year:
2026
Address:
San Diego, California, USA
Editors:
Yunyao Li, Georg Rehm, Mei Tu
Venue:
ACL
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
1956–1966
Language:
URL:
https://preview.aclanthology.org/ingest-acl/2026.acl-industry.133/
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Bibkey:
Cite (ACL):
Mansi Uniyal, Mukul Singh, and Ryan Nadel. 2026. Agentic Context Strategies for Multi-Format Document Understanding: When Should Language Models Use Tools?. In Proceedings of the 64th Annual Meeting of the Association for Computational Linguistics (ACL 2026), pages 1956–1966, San Diego, California, USA. Association for Computational Linguistics.
Cite (Informal):
Agentic Context Strategies for Multi-Format Document Understanding: When Should Language Models Use Tools? (Uniyal et al., ACL 2026)
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https://preview.aclanthology.org/ingest-acl/2026.acl-industry.133.pdf