Beyond Scale and Generation: Understanding Language Model-based Entity Matching

Recent large language models (LLMs) achieve strong performance on entity matching without requiring task-specific training data. However, applying these models to large sets of candidate pairs remains slow and costly. In contrast, entity matchers using traditional machine learning methods or small language models (SLMs), such as RoBERTa, offer much faster inference but require task-specific training data. This paper investigates whether the need to provide task-specific training data can be avoided by using knowledge-distillation workflows, in which an LLM serves as a teacher model to label training pairs that are subsequently used to train a smaller student model. We investigate knowledge distillation for entity matching along the following dimensions: pair-selection strategy, teacher model, label post-processing method, and student model. We evaluate the workflows using the Abt-Buy, Walmart-Amazon, WDC Products, DBLP-ACM, and DBLP-Scholar benchmarks, and compare the performance of student models trained with machine-labeled data to the performance of the same models trained using the benchmark training sets. Our experiments show that student models trained using the machine-labeled sets perform approximately on par with models trained on the benchmark training sets, with the remaining differences in both directions staying below two F1 points. Using GPT-5.2 to label the training sets for all five benchmarks costs US$28.31 to US$40.88, whereas manually labeling the same training sets is estimated to require 470 hours of work. At inference time, Ditto is 41.5 to 534 times faster than directly using an LLM to perform the matching tasks. These results indicate that current LLMs, when combined with a suitable pair-selection method, can substantially reduce or even eliminate the manual effort required to label use case-specific training data for entity matching.

Entity matching (EM) requires fine-grained contextual understanding and domain knowledge. Recent work shows that large language models (LLMs) can serve as strong matchers across domains, but most methods either make independent pairwise decisions or rely on manually designed composite pipelines, thus lacking flexibility in realistic multi-candidate settings. At the same time, they typically ignore inference cost at scale. We formulate LLM-based EM with candidates as a cost-aware sequential decision problem and propose CaRL-EM, a reinforcement learning controller that manages LLM operations. Given the state of an anchor record, its candidate set, and the cost, CaRL-EM adaptively chooses among different operators (Match/Compare/Select/Decide) and model capacities to maximize a quality-cost objective. The policy interacts with abstract operators, allowing the same controller to be reused with different underlying LLM backends at inference time without retraining. Experiments on 7 benchmarks show that CaRL-EM (i) learns to dynamically plan the usage of inexpensive and expensive operators based on task complexity, (ii) achieves robust zero-shot transfer across diverse datasets and domains, and (iii) consistently achieves a better quality-cost trade-off than strong LLM-based baselines and manually designed pipelines, yielding a lower inference cost at comparable or higher quality.

Multi-table entity matching (MEM) addresses the limitations of dual-table approaches by enabling simultaneous identification of equivalent entities across multiple data sources without unique identifiers. However, existing methods relying on pre-trained language models struggle to handle semantic inconsistencies caused by numerical attribute variations. Inspired by the powerful language understanding capabilities of large language models (LLMs), we propose a novel LLM-based framework for multi-table entity matching, termed LLM4MEM. Specifically, we first propose a multi-style prompt-enhanced LLM attribute coordination module to address semantic inconsistencies. Then, to alleviate the matching efficiency problem caused by the surge in the number of entities brought by multiple data sources, we develop a transitive consensus embedding matching module to tackle entity embedding and pre-matching issues. Finally, to address the issue of noisy entities during the matching process, we introduce a density-aware pruning module to optimize the quality of multi-table entity matching. We conducted extensive experiments on 6 MEM datasets, and the results show that our model improves by an average of 5.1% in F1 compared with the baseline model. Our code is available at https://github.com/Ymeki/LLM4MEM.