We present a graph-theoretic approach to adaptively compute many-body approximations in an efficient manner to perform (a) accurate post-Hartree-Fock (HF) ab initio molecular dynamics (AIMD) at density functional theory (DFT) cost for medium-to large-sized molecular clusters, (b) hybrid DFT electronic structure calculations for condensed-phase simulations at the cost of pure density functionals, (c) reduced-cost on-the-fly basis extrapolation for gas-phase AIMD and condensed phase studies, and (d) accurate post-HF-level potential energy surfaces at DFT cost for quantum nuclear effects. The salient features of our approach are ONIOM-like in that (a) the full system (cluster or condensed phase) calculation is performed at a lower level of theory (pure DFT for condensed phase or hybrid DFT for molecular systems), and (b) this approximation is improved through a correction term that captures all many-body interactions up to any given order within a higher level of theory (hybrid DFT for condensed phase; CCSD or MP2 for cluster), combined through graph-theoretic methods. Specifically, a region of chemical interest is coarse-grained into a set of nodes and these nodes are then connected to form edges based on a given definition of local envelope (or threshold) of interactions. The nodes and edges together define a graph, which forms the basis for developing the many-body expansion. The methods are demonstrated through (a) ab initio dynamics studies on protonated water clusters and polypeptide fragments, (b) potential energy surface calculations on one-dimensional water chains such as those found in ion channels, and (c) conformational stabilization and lattice energy studies on homogeneous and heterogeneous surfaces of water with organic adsorbates using two-dimensional periodic boundary conditions.