Domain Adaptation for LLMs

Data allocation plays a critical role in federated large language model (LLM) and small language models (SLMs) reasoning collaboration. Nevertheless, existing data allocation methods fail to address an under-explored challenge in collaboration: bidirectional model learnability gap, where client-side SLMs cannot identify high-reward samples matching their learnability constraints for effective knowledge transfer from LLMs, while LLMs struggle to select samples contributing novel knowledge beyond their existing data. Furthermore, these collaboration frameworks face another key challenge: domain-agnostic reasoning transfer, where existing reasoning transfer methods fail to flexibly adapt to the local domain data, preventing SLMs from effectively acquiring step-by-step reasoning abilities within from general LLM. To address these challenges, we propose LaDa, a federated reasoning distillation framework with model learnability-aware data allocation. It introduces a model learnability-aware data filter that adaptively allocates high-reward samples based on the learnability gap between each SLM and LLM pair, effectively facilitating bidirectional knowledge transfer. We further design a domain adaptive reasoning distillation method that aligns joint probabilities of reasoning paths on filtered high-reward samples through contrastive distillation learning between SLM and LLM, enabling SLM to capture underlying reasoning patterns under local data distribution. LaDa operates as a plug-in module for existing collaboration frameworks, adapting knowledge transfer based on model learnability gaps.

Large Language Models (LLMs), despite extensive pretraining on broad internet corpora, often struggle to adapt effectively to specialized domains. There is growing interest in fine-tuning these models for such domains; however, progress is constrained by the scarcity and limited coverage of high-quality, task-relevant data. To address this, synthetic data generation methods such as paraphrasing or knowledge extraction are commonly applied. Although these approaches excel at factual recall and conceptual knowledge, they suffer from two critical shortcomings: (i) they provide minimal support for interpretive reasoning capabilities in these specialized domains, and (ii) they often produce synthetic corpora that are excessively large and redundant, resulting in poor sample efficiency. To overcome these gaps, we propose an adversarial question-generation framework that produces a compact set of semantically challenging questions. These questions are constructed by comparing the outputs of the model to be adapted and a robust expert model grounded in reference documents, using an iterative, feedback-driven process designed to reveal and address comprehension gaps. Evaluation on specialized subsets of the LegalBench corpus demonstrates that our method achieves greater accuracy with substantially fewer synthetic samples.

While Large Language Models (LLMs) have achieved strong performance on general-purpose language tasks, their deployment in regulated and data-sensitive domains, including insurance, remains limited. Leveraging millions of historical warranty claims, we propose a locally deployed governance-aware language modeling component that generates structured corrective-action recommendations from unstructured claim narratives. We fine-tune pretrained LLMs using Low-Rank Adaptation (LoRA), scoping the model to an initial decision module within the claim processing pipeline to speed up claim adjusters' decisions. We assess this module using a multi-dimensional evaluation framework that combines automated semantic similarity metrics with human evaluation, enabling a rigorous examination of both practical utility and predictive accuracy. Our results show that domain-specific fine-tuning substantially outperforms commercial general-purpose and prompt-based LLMs, with approximately 80% of the evaluated cases achieving near-identical matches to ground-truth corrective actions. Overall, this study provides both theoretical and empirical evidence to prove that domain-adaptive fine-tuning can align model output distributions more closely with real-world operational data, demonstrating its promise as a reliable and governable building block for insurance applications.

Current large language models excel at broad, general-purpose tasks, but consistently underperform when exposed to highly specialized domains that require deep cultural, linguistic, and subject-matter expertise. In particular, traditional medical systems such as Ayurveda embody centuries of nuanced textual and clinical knowledge that mainstream LLMs fail to accurately interpret or apply. We introduce AyurParam-2.9B, a domain-specialized, bilingual language model fine-tuned from Param-1-2.9B using an extensive, expertly curated Ayurveda dataset spanning classical texts and clinical guidance. AyurParam's dataset incorporates context-aware, reasoning, and objective-style Q&A in both English and Hindi, with rigorous annotation protocols for factual precision and instructional clarity. Benchmarked on BhashaBench-Ayur, AyurParam not only surpasses all open-source instruction-tuned models in its size class (1.5--3B parameters), but also demonstrates competitive or superior performance compared to much larger models. The results from AyurParam highlight the necessity for authentic domain adaptation and high-quality supervision in delivering reliable, culturally congruent AI for specialized medical knowledge.