Learning from Interaction Experience via Localized Context Distillation

arXiv:2610.21427v1 Announce Type: new Abstract: Learning from interaction experience is essential for enabling large language models to continually improve during deployment. Context distillation offers a promising path: privileged information extracted from experience is provided to a teacher, whose behavior is then distilled into a student model that has no access to it. However, both existing forms of context distillation have limitations. Off-policy context distillation trains the student on teacher-generated trajectories and thus suffers from exposure bias; whereas on-policy context disti

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