CLAug 27, 2025

Can Compact Language Models Search Like Agents? Distillation-Guided Policy Optimization for Preserving Agentic RAG Capabilities

arXiv:2508.20324v3h-index: 2
Originality Incremental advance
AI Analysis

This work makes agentic RAG feasible in computing resource-constrained environments, addressing a domain-specific problem for deploying efficient AI agents.

The paper tackled the challenge of applying reinforcement learning to compact language models for agentic RAG behaviors, proposing Distillation-Guided Policy Optimization (DGPO) to enable these models to achieve sophisticated search capabilities, even outperforming larger teacher models in some cases.

Reinforcement Learning has emerged as a dominant post-training approach to elicit agentic RAG behaviors such as search and planning from language models. Despite its success with larger models, applying RL to compact models (e.g., 0.5--1B parameters) presents unique challenges. The compact models exhibit poor initial performance, resulting in sparse rewards and unstable training. To overcome these difficulties, we propose Distillation-Guided Policy Optimization (DGPO), which employs cold-start initialization from teacher demonstrations and continuous teacher guidance during policy optimization. To understand how compact models preserve agentic behavior, we introduce Agentic RAG Capabilities (ARC), a fine-grained metric analyzing reasoning, search coordination, and response synthesis. Comprehensive experiments demonstrate that DGPO enables compact models to achieve sophisticated agentic search behaviors, even outperforming the larger teacher model in some cases. DGPO makes agentic RAG feasible in computing resource-constrained environments.

Foundations

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