Transforming LLMs into Efficient Cross-Encoders via Knowledge Distillation for RAG Reranking

Dense vector retrieval is the practical backbone of Retrieval- Augmented Generation (RAG), but similarity search can suffer from precision limitations. Conversely, utility-based approaches leveraging LLM re-ranking often achieve superior performance but are computationally prohibitive and prone to noise inherent in perplexity estimation. We propose Utility-Aligned Embeddings (UAE), a framework designed to merge these advantages into a practical, high-performance retrieval method. We formulate retrieval as a distribution matching problem, training a bi-encoder to imitate a utility distribution derived from perplexity reduction using a Utility-Modulated InfoNCE objective. This approach injects graded utility signals directly into the embedding space without requiring test-time LLM inference. On the QASPER benchmark, UAE improves retrieval Recall@1 by 30.59%, MAP by 30.16% and Token F1 by 17.3% over the strong semantic baseline BGE-Base. Crucially, UAE is over 180x faster than the efficient LLM re-ranking methods preserving competitive performance, demonstrating that aligning retrieval with generative utility yields reliable contexts at scale.

Rerankers play a pivotal role in refining retrieval results for Retrieval-Augmented Generation. However, current reranking models are typically optimized on static human annotated relevance labels in isolation, decoupled from the downstream generation process. This isolation leads to a fundamental misalignment: documents identified as topically relevant by information retrieval metrics often fail to provide the actual utility required by the LLM for precise answer generation. To bridge this gap, we introduce ReRanking Preference Optimization (RRPO), a reinforcement learning framework that directly aligns reranking with the LLM's generation quality. By formulating reranking as a sequential decision-making process, RRPO optimizes for context utility using LLM feedback, thereby eliminating the need for expensive human annotations. To ensure training stability, we further introduce a reference-anchored deterministic baseline. Extensive experiments on knowledge-intensive benchmarks demonstrate that RRPO significantly outperforms strong baselines, including the powerful list-wise reranker RankZephyr. Further analysis highlights the versatility of our framework: it generalizes seamlessly to diverse readers (e.g., GPT-4o), integrates orthogonally with query expansion modules like Query2Doc, and remains robust even when trained with noisy supervisors.

As retrieval systems scale, effective and efficient reranking becomes increasingly important. However, most existing encoder- and decoder-based rerankers jointly process every query--passage pair, tightly coupling their online computation and limiting deployment efficiency and flexibility. We present KaLM-Reranker-V1, a fast but not late-interaction FBNL reranker that decouples query and passage computation while retaining expressive relevance modeling. Built on an encoder--decoder architecture, KaLM-Reranker-V1 pre-encodes passages using Matryoshka embedding pooling, while its decoder models system and user instructions together with query intent; cross-attention then captures fine-grained relevance between the resulting query context and passage representations. Together, these designs offer four key advantages: (i) efficiency from offline passage encoding, (ii) expressiveness from cross-attention, (iii) compactness from Matryoshka embedding pooling, and (iv) test-time compute through an adjustable compute budget. We instantiate KaLM-Reranker-V1 in three sizes, Nano, Small, and Large, with 0.27B, 1B, and 4B activated parameters, respectively. Extensive experiments on BEIR, MIRACL, and LMEB demonstrate strong reranking performance with superior efficiency. On BEIR and MIRACL, our models achieve competitive performance in multi-domain and multilingual reranking, on par with strong industrial rerankers such as the Qwen3/BGE-Reranker series. On LMEB-Dialogue, a compact embedding model paired with our Nano reranker, which has only 0.27B activated parameters, remains competitive with 7--12B embedding models. Data and models are available at https://huggingface.co/collections/KaLM-Embedding/lychee-kalm-reranker-and-jev.