Microsoft paper: coding agent optimizing prompts from logs beats GEPA at ~$1.60

rohanpaul_ai · x · 2026-10-02

A Microsoft paper introduces CASD (Coding-Agent Skill Distillation): hand your agent's saved logs to an ordinary coding agent, which writes analysis code to find systematic failure modes and distill an optimized prompt — no iterative search needed. It beats prompt-tuning tool GEPA on 3 of 4 agent benchmarks at roughly $1.60 per prompt. Practical takeaway: mine your existing logs first, save trial-and-error tuning for marginal gains.

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