CharacterFlywheel: Scaling Iterative Improvement of Engaging and Steerable LLMs in Production

Large language models (LLMs) are increasingly used to automate AI research, including language-model (LM) development, offering a potential path toward recursive self-improvement. However, turning experimental feedback into a learned ability to propose effective improvements across models faces two challenges. First, training such an ability with real feedback is expensive: reinforcement learning (RL) requires evaluating tens of thousands of proposals, each potentially requiring a full model-training run. Even at ten GPU-hours per run, reward collection alone would consume hundreds of thousands of GPU-hours, motivating a cheaper surrogate. Second, surrogate feedback can become unreliable as policy optimization favors overestimated proposals when the proposal distribution shifts. To address these challenges, we propose LM2LM, which trains LLMs with RL to generate effective LM improvement proposals. To provide scalable feedback, we use a research world model (RWM), a frozen LLM that predicts proposal gains from real experimental records provided in context, as the reward model for RL. To maintain feedback reliability, we periodically execute current-policy proposals ranked highly by the RWM and add their measured outcomes to its context. Across eight autoregressive and diffusion LM development environments, real-execution evaluations on held-out tasks show that LM2LM enables Qwen3.8-27B to outperform GPT-6-sol, even when GPT-6-sol is given 300 real experimental records in context, while requiring 33% lower data-generation cost. LM2LM also generalizes to a model family unseen during training.

Humans continuously learn from experience, whereas conventional large language model (LLM) evaluations ignore the models' ability to improve through inference-time interaction. In this paper, we study how LLMs learn from iterative experience at test time, a setting we refer to as Chain-of-Experience (CoE), where models accumulate experiential traces through iterative interactions with self or environmental feedback to form a continual improvement loop beyond zero-shot inference. We instantiate CoE with diverse feedback mechanisms, including model self-feedback and environmental signals such as correctness or public coding test pass rates, and evaluate across math, coding, and knowledge domains using 8 LLMs, including GPT-5, Gemini-2.5 Pro, Claude-4.5 Sonnet. Our study shows that leveraging iterative experience consistently outperforms feedback-free baselines, achieving substantial gains with self feedback alone, alongside a 5.6% overall improvement and 19% lower API cost across tasks and models. We further show that combining complementary feedback channels (e.g., model and correctness signals) yields additional gains, and that CoE delivers higher accuracy per token than existing test-time strategies. We observe a positive correlation between LLM base ability and improvement capacity, and show that models remain robust under weak or spurious feedback, with different feedback contributing to distinct improvement aspects and most gains emerging early in the iterations.

The transition of Large Language Models (LLMs) from exploratory tools to active "silicon subjects" in social science lacks extensive validation of operational validity. This study introduces Conditioned Comment Prediction (CCP), a task in which a model predicts how a user would comment on a given stimulus by comparing generated outputs with authentic digital traces. This framework enables a rigorous evaluation of current LLM capabilities with respect to the simulation of social media user behavior. We evaluated open-weight 8B models (Llama3.1, Qwen3, Ministral) in English, German, and Luxembourgish language scenarios. By systematically comparing prompting strategies (explicit vs. implicit) and the impact of Supervised Fine-Tuning (SFT), we identify a critical form vs. content decoupling in low-resource settings: while SFT aligns the surface structure of the text output (length and syntax), it degrades semantic grounding. Furthermore, we demonstrate that explicit conditioning (generated biographies) becomes redundant under fine-tuning, as models successfully perform latent inference directly from behavioral histories. Our findings challenge current "naive prompting" paradigms and offer operational guidelines prioritizing authentic behavioral traces over descriptive personas for high-fidelity simulation.