Auto-commit behavior in SQL means that when auto-commit is ON, each SQL statement runs in its own transaction and commits automatically after execution. This means changes like INSERT, UPDATE, or DELETE are saved immediately without needing a separate COMMIT command. The execution trace shows starting a session with auto-commit ON, executing an INSERT which triggers an implicit transaction, then auto-commit commits the transaction automatically. A subsequent SELECT shows the inserted row. The transaction state changes from no active transaction to implicit transaction started, then to committed, and back to no active transaction. If auto-commit were OFF, the transaction would remain open after the INSERT until a manual COMMIT or ROLLBACK is issued. This behavior is important to understand for controlling when data changes become permanent.