Probabilistic Federated Learning on Uncertain and Heterogeneous Data with Model Personalization

Federated learning (FL) enables a set of distributed clients to jointly train machine learning models while preserving their local data privacy, making it attractive for applications in healthcare, finance, mobility, and smart-city systems. However, FL faces several challenges, including statistical heterogeneity and uneven client participation, which can degrade convergence and model quality. In this work, we propose FedPBS, an FL algorithm that couples complementary ideas from FedBS and FedProx to address these challenges. FedPBS dynamically adapts batch sizes to client resources to support balanced and scalable participation, and selectively applies a proximal correction to small-batch clients to stabilize local updates and reduce divergence from the global model. Experiments on benchmarking datasets such as CIFAR-10 and UCI-HAR under highly non-IID settings demonstrate that FedPBS consistently outperforms state-of-the-art methods, including FedBS, FedGA, MOON, and FedProx. The results demonstrate robust performance gains under extreme data heterogeneity, with smooth loss curves indicating stable convergence across diverse federated environments. FedPBS consistently outperforms state-of-the-art federated learning baselines on UCI-HAR and CIFAR-10 under severe non-IID conditions while maintaining stable and reliable convergence.

Contemporary AI faces the challenge of balancing generality with user-specific personalization. In federated learning (FL), this challenge is amplified by highly heterogeneous client data with complex non-IID patterns beyond standard IID assumptions. Many existing FL methods are designed for relatively restricted heterogeneity settings (e.g., a fixed number of clusters or a fixed form of personalization), limiting their robustness under complex structures. In this work, we study FL from a multi-level non-IID perspective, where client similarity is captured by multiple granularities of shared knowledge: global, subgroup, and client-specific components. This view captures coarse-to-fine relationships while requiring less prior knowledge of task boundaries. Building on this insight, we propose Federated Multi-level Additive Modeling (FeMAM), which learns multiple levels of shareable models and constructs personalized predictors via additive composition across levels. To move beyond a fixed structure, FeMAM allows models to grow and be pruned dynamically during training, adapting to diverse federated scenarios. Despite employing multiple models, FeMAM remains cost-friendly by unlocking only a small subset (one level) of models for training at a time. Extensive experiments show that FeMAM effectively approximates diverse complex non-IID structures and consistently outperforms representative clustered and personalized FL baselines.

Federated Learning (FL) has gained significant attention in distributed machine learning by enabling collaborative model training across decentralized system while preserving data privacy. Although extensive research has addressed statistical data heterogeneity, FL still faces several challenges, including high communication and computation overheads and severe device heterogeneity, which require further investigation. Prior work has addressed these issues through sub-model training and partial parameter training. However, such methods often suffer from inconsistent parameter distributions across clients, inaccurate global loss estimation, and increased bias and variance. Guided by our empirical analysis, we propose FedPLT (Federated Learning with Partial Layer Training), an innovative and structured partial parameter training approach that exhibits training behavior similar to full model training while assigning client-specific portions of the model according to their communication and computational capabilities. In addition, we evaluate the performance of FedPLT when combined with optimal client sampling under communication constraints. We show that this integration improves FL performance by reducing sampling variance under the same communication budget. Through extensive experiments, we demonstrate that FedPLT achieves performance comparable to, or even surpassing, that of full-model training (i.e., FedAvg), while requiring significantly fewer trainable parameters per client. Moreover, FedPLT outperforms existing methods in highly heterogeneous environments, effectively adapts to client resource constraints, and reduces the number of straggling clients. In particular, FedPLT reduces the number of trainable parameters by 71%-82% while achieving performance on par with full-model training.