When Cloud Agents Meet Device Agents: Lessons from Hybrid Multi-Agent Systems

Abstract: The design space of agentic AI inference spans two extremes: frontier LLMs, typically hosted in the cloud and offering strong performance across a wide range of tasks at substantially high cost, and more cost-efficient small LLMs (SLMs), which are amenable to on-device inference. Hybrid multi-agent systems (MASs) combining on-device and cloud models offer a promising middle ground, but they also introduce a complex and poorly understood design space in which task accuracy, monetary cost, and edge energy consumption are tightly coupled; in the absence of general design principles, hybrid components, although not the most prevalent choice, are typically introduced through ad hoc decisions tailored to specific domains. In this work, we examine this design space more systematically. We adapt two representative MAS architectures to support hybrid inference and study how individual design choices shift the operating point along the Pareto frontier of power, cost, and performance. Our findings paint a nuanced picture of hybrid MAS design: while SLMs can effectively benefit from LLM assistance, the optimal architecture is highly task-dependent, and greater frontier-level compute does not consistently translate to better performance.