Paper Overview
Field: Machine Learning Authors: Ya Gao, Zhengtao Zou, Pekka Marttinen Published: 2026-10-27 arXiv: 2610.31918
Summary
Distilling interactive LLM agents requires choosing between teacher-generated demonstrations and student-generated experience, corresponding broadly to off-policy and on-policy distillation. While both approaches have proven effective, the authors argue this distinction is inherently hierarchical: the policy that induces an interaction history need not be the same as the policy that generates the token prefix of the current action.
They introduce a hierarchical agent distillation framework that formalizes these two levels of on-policiness and enables explicit control over their pairing, mixture proportions, and training schedule.
Methodology
The problem is studied through self-distillation, where a frozen teacher has access to task guidance unavailable to the student. A three-stage controlled study was conducted across three models and four interactive environments.
Key Findings
- Pairing student-induced histories with teacher-generated action prefixes generally provides the strongest standalone training signal.
- Following the student at both levels typically performs worst.
- Fully on-policy data becomes beneficial when included in mixtures with other configurations.
- Mixtures with the same teacher/student ratio at each level can produce significantly different performance, showing that how the two levels are paired matters beyond the total amount of on-policy data.
- Scheduling—front-loading fully teacher-generated context and delaying fully on-policy context—outperforms static mixtures.
Original Abstract (excerpt)
> Distilling interactive LLM agents requires choosing between teacher-generated demonstrations and student-generated experience, corresponding broadly to off-policy and on-policy distillation. While both have proven effective, we argue that this distinction is inherently hierarchical: the policy that induces an interaction history need not be the same as the policy that generates the token prefix of the current action. We introduce a hierarchical agent distillation framework that formalizes these two levels of on-policiness and enables explicit control over their pairing, mixture proportions, and training schedule...
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