Discovering Collaboration from Novelty: Random Network Distillation for Clustered Federated Learning

Federated Learning (FL) enables collaborative model training across distributed clients without sharing raw data, yet its performance deteriorates under statistical heterogeneity. Clustered Federated Learning addresses this challenge by grouping similar clients and training separate models per cluster. However, existing clustering strategies often rely on raw data statistics, model parameters, or heuristic similarity measures that fail to capture class-level semantic structure across heterogeneous domains and frequently require iterative coordination. We propose FMCL, a one-shot, class-aware client clustering framework that leverages foundation model representations to construct semantic client signatures. Using a frozen foundation model, FMCL computes class-level embedding prototypes for each client and measures similarity via cosine distance between their class-aware representations. Clustering is performed once prior to training, introducing no additional communication during federated optimization and remaining agnostic to the downstream model architecture. Extensive experiments across heterogeneous benchmarks demonstrate that FMCL improves federated performance and yields more stable clustering behavior compared to existing clustering-based methods under non-identically distributed data partitioning.

Conventional federated learning (FL) relies on parameter averaging, which forces clients to be doubly homogeneous: it demands an identical architecture and degrades under non-IID data. Real-world deployments usually break both assumptions. We sidestep both by building a decentralized knowledge distillation framework in which each client evaluates its peers' model snapshots on its own local data and distills from the resulting soft predictions. Because knowledge is transferred through the shared class posterior, clients are free to run different architectures; and because every teacher is evaluated on the student's own device, raw data never leaves the client, with no central server or public dataset required. Within this setting, we identify and address an under-examined problem: how to combine the peer teacher predictions. Existing methods, like uniform averaging, ignore how knowledge reliability varies across teachers and classes. We propose Class-wise Reliability-Aware Distillation (CRAD), which, per class, first discards teachers that disagree with the peer consensus and then takes a weighted average of the rest, weighting each teacher by its per-class reliability (precision, or inverse variance). Since the variance of an accuracy from $n$ samples scales as $1/n$, support enters automatically: among the teachers that survive filtering, a teacher is trusted for a class to the degree that it is both accurate and well-evidenced for it. On three image-classification benchmarks (CIFAR-10, CIFAR-100, and PathMNIST colon pathology), across heterogeneous architectures under severe non-IID skew, CRAD consistently outperforms competing methods in global accuracy.

Federated learning (FL) is a decentralized approach that enables collaborative model training without exposing raw data. Instead of transferring sensitive data, it allows devices to share only model weights, keeping personal data locally and secure. However, in real world settings, the data held by devices is often not evenly distributed and devices mostly differ in computing power and memory capacity. These differences make FL harder to maintain consistent performance across the system. To address these issues, we propose FedMTFI, a novel architecture that combines multi-teacher knowledge distillation (MTKD) with feature importance to improve the FL process in heterogeneous environments. In FedMTFI, clients are clustered based on similar hardware and model types. Each cluster trains a specific model on not independently and identically distributed (non-IID) data. Within a cluster, every client updates that model using only its own local private data. The server then aggregates the locally trained models in each cluster using FedAvg to form multiple prototype models. Then these prototypes serve as teacher models to train a global generalized student model using MTKD. What makes FedMTFI more unique is the integration of Shapley values (SHAP) to emphasize important features during distillation, which enhances both accuracy and interpretability. Experimental results show that FedMTFI achieves higher accuracy than traditional FL algorithms and performs more effectively under non-IID data conditions.