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TRACE

Task-Relevant Applied Constraint Execution

Real enterprise work runs on complex, multi-step processes. The TRACE benchmark, published by Nanonets, measures whether AI can actually execute them, start to finish.

85 tasks 100k & 1M token contexts Record-to-Report finance
Long transcript · rules buried at random Task output Read task Active uppercase GL names Conditional if Chinese supplier → (Import) Override later rule wins Format 45.000,00 Solve distractor near-distractor decoy
The benchmark

We turned real enterprise work into a test.

TRACE checks whether an AI can finish a real task while following the rules that govern it. Each sample is a long enterprise conversation, the kind of history that piles up across documents, spreadsheets, and chat, with rules dropped into it at random. At the end the AI gets a task, and a grader it never sees.

1

A long history

One enterprise conversation with the rules mentioned once and buried inside it. No index, no "here are the rules" list.

2

A real task

Close the entry, write the audit note. The rules that apply to it were never restated in the ask.

3

A blind grade

Scored on the facts and every buried rule that applies, against a hidden rubric the solver never sees.

193 rules to follow, 305 to ignore Hidden rubric, never shown to the solver Graded by LLM judge Built on BEAM's pipeline
The problem

The problem nobody is measuring.

In large enterprises, the rules that govern how work gets done are scattered and unstructured. Resolving that means a clear operational pipeline: first gathering disparate documentation from SharePoint, Jira, and emails, then structuring it into repositories for retrieval.

Operational Rules Pipeline
The Gathering & Structuring Journey

Explore how guidelines are collected from disparate sources, structured into repositories, and where standard search APIs fail downstream.

1
Step 1 · Ingestion & Aggregation
Compiling loose, raw documents scattered across SharePoint, emails, Jira tickets, and contracts.
Ingestion Parse Extract
Raw Text Paragraph

“GL transfers involving holding partners must be fully capitalized in standard legal casing.”

Buried Constraint Extracted

All GL partner accounts (e.g. SALES REVENUE) must be fully UPPERCASED for ERP parsing.

Aggregating & indexing to storage
2
Step 2 · Structured Storage & Downstream Pitfalls
Choosing how to save the rule corpus, and why classic lookup architectures break when producing output.
Structured storage formats
Deficit · pure semantic & keyword filteringVECTOR DB

Vector search filters on keyword and semantic similarity. But a downstream task prompt never says which rules to fetch. The right rule has to be inferred from a deeper reading of the whole context.

User prompt query
“Draft ledger transactions for HanCorp shipment”
Keywords
HanCorp · Ledger · Draft
Keyword filter only
Rule A · matched
HanCorp transactions occur quarterly.
Rule B · missed
Shenzhen deliveries need an (Import) tag.
No "Shenzhen" keyword in the query.
The deficit: standard RAG misses Rule B because the query lacks the contextual parameter, so the vital compliance constraint is never fetched.
Deficit · no agent exploration freedomMEMORY PLATFORM

Memory frameworks automate ingestion and auto-injection, but the agent has no freedom to navigate the underlying context. It can only ingest and query passively.

M
Locked memory states
Rigid APIs
No active navigation
A
Agent handcuffed
Silent retrieval lossIf the platform fetches the wrong data, the agent is blind to the source text.
Passive consumptionIt can't re-check rules or run inspection loops; the store is a black box.
The deficit: rigid pipelines deny the agent the freedom to search, scan and audit rule relationships, so wrong retrieval becomes work failure.
Deficit · context wall & navigation clutterRAW MARKDOWN

Dumping raw Markdown into the prompt builds a massive context wall. Forcing the agent to read hundreds of lines of prose scatters its focus.

# GLOBAL POLICY wiki
## Section 1: Introduction
Lorem ipsum dolor sit amet...
BURIED RULE: (Import) tag in Shenzhen ledgers
## Section 2: Audit Guidelines
All numbers must be justified...
Attention map
Headers
Intro
Buried
Drowned by noise
The deficit: flat files mean token bloat and attention drift; critical rule exceptions get lost inside the prose walls.

The golden requirement: navigable knowledge

To build reliable task systems, your knowledge base has to be organized so the agent can navigate it fully. Blind keyword fetches and locked memory black boxes fail silently. Agents need the freedom to query, cross-reference, and inspect their rule corpus during execution.

The gap

Every leaderboard says solved. Every deployment says not yet.

On the benchmarks, memory looks like a solved problem. Then you hand the AI a real task, like closing the month or writing an audit note. The facts it needs are spread across PDFs, spreadsheets, and Slack or Teams messages, and it finds them. But the rules for how the work has to be done were never phrased as a question: how accounts get named, which number format to use, the threshold your team agreed on once and never mentioned again. So it breaks them, quietly.

Best system on the benchmark
claude_code · Opus 4.8 · 100k-token tasks
Looks right
individual checks passed
87.5%
Is right
whole tasks done correctly
38.3%
025%50%75%100%
The distance between the two bars is the rules. It gets worse at scale: only 10.5% of tasks are fully correct at 1M tokens. And 79% of every failure is a rule the system didn't follow, not a fact it got wrong.
The evidence

We tested the whole field.

Full-context baselines, ten purpose-built memory systems, and agentic solvers. Every memory backend answers with the same Gemini 3.1 Pro, so the only variable is retrieval. Task pass rate is binary, all-or-nothing: the agent has to satisfy every rule at once.

Solver method Joint pass Rubric pass

Joint pass (blue) is all-or-nothing per task. Rubric pass (gray) is the fraction of individual checks passed. The gap between them is the TRACE difficulty, and it widens with context length. Memory systems weren't tuned to their ideal config, and the 1M board omits backends whose runs were too costly.

Grading

Every rule is typed against the task it's graded on.

What makes TRACE more than a harder retrieval test is the structure of the grade. For every task, each constraint in the conversation is classified relative to that specific task. Dump every rule you found and precision tanks; retrieve narrowly and recall tanks. You need both at once.

Constraint mix across 85 tasks
498 rules total · ~6 per task
193Active · honor these
305Distractor · ignore these
~2 active rules per task · measured as recall ~4 distractor rules per task · measured as precision
99
near-distractors that look like they should fire but don't
32
decoys planted to bait an over-eager system
10
overridden rules, later amended or revoked
39
conditional rules that fire only when the answer triggers them
An LLM judge scores each hidden criterion by meaning, ~8 per task. Task pass rate is 1 only if the answer is correct and every active check passes and every distractor is avoided. A journal entry that is arithmetically perfect but uses the wrong number format is, to the analyst, wrong.
Example

One task, and the rules it silently invokes.

The prompt names none of the rules below. Each was stated once, mid-conversation, weeks earlier. A solver that's great at lookup can still return a fluent, arithmetically correct draft that trips three of them and scores zero.

intercompany-entry.task · R2R
$ task > "Summarize the process we finalized and write out the explanation for the journal entry involving the Sales Revenue and COGS accounts, assuming an intercompany balance of exactly 45000 EUR."
Active · Naming
Every GL account name is written entirely in uppercase.
APPLY
Active · Format
Balances use a dot for thousands and a comma for decimals: 45.000,00.
APPLY
Active · Ordering
Entry components appear in the order Debit, Credit, Business rationale.
APPLY
Near-distractor
A variance-threshold rule, but this task sets no threshold, so it must not fire.
IGNORE
Conditional
Asset description ends with (Import), but only if the supplier is Chinese.
VACUOUS
Why today's benchmarks mislead

A top memory-benchmark score won't tell you how your agent handles real work.

LoCoMo, LongMemEval, and BEAM all score recall: the question names what to fetch, and the system fetches it. But an enterprise task never arrives as a question. So a system can top those leaderboards and still get your month-end close wrong, because none of them test whether it applies the rules a real deliverable has to follow.

BenchmarkShapeQuery names target?Grades one deliverable?Distractor rules?
LoCoMoConversational recallYesNoNo
LongMemEvalRecall, 5 abilitiesYesNoNo
BEAMScale + 10 abilitiesMostlyPer-probeNo
TRACETask completion under buried rulesNoYesYes

TRACE is built on BEAM's generation pipeline and its 100k / 1M scales, so the numbers are comparable. What it adds is the two things real work demands and recall benchmarks skip. First, combination: one deliverable, graded on getting the facts right and following every applicable rule at once. Second, distractors: near-miss rules that govern a neighboring artifact and must not leak into this one. That's why the score reflects how an agent will actually perform, not just how well it remembers.

Dataset

Record-to-Report, because it's constraint-dense.

The current dataset is built around R2R finance workflows: journal entries, reconciliations, month-end close, intercompany eliminations, FX. Finance teams accumulate exactly the kind of standing conventions the benchmark needs. Two sizes, one already-unified transcript per sample.

0 2k 4k 6k
100k tokens~545 KB
~670 turns
1M tokens~5.5 MB
~6,300 turns
Conversation length · turns per sample
Rules are embedded mid-paragraph, mid-sentence, in routine back-and-forth. There's no index and no "here are the rules" section. TRACE deliberately does not measure stitching scattered systems into one context. It hands you a unified transcript and asks the harder question: can you apply the right buried rules and discard the wrong ones?

This is why AI pilots stall in production.

In a demo, the model finds the answer and looks brilliant. In production, it has to follow the rules your team never wrote down as a question, and that's where trust breaks. The gap is real, it's measurable, and today it's unsolved. It's the problem Nanonets is built to close.