Adaptive Simulation Experiment for LLM Policy Optimization
- URL: http://arxiv.org/abs/2604.08779v1
- Date: Thu, 09 Apr 2026 21:29:42 GMT
- Title: Adaptive Simulation Experiment for LLM Policy Optimization
- Abstract summary: Large language models (LLMs) have significant potential to improve operational efficiency in operations management.<n> Deploying these models requires specifying a policy that governs response quality, shapes user experience, and influences operational value.<n>This research proposes a pairwise comparison-based adaptive simulation experiment for identifying the optimal policy from a finite set of candidates.
- Score: 10.11723645147155
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Large language models (LLMs) have significant potential to improve operational efficiency in operations management. Deploying these models requires specifying a policy that governs response quality, shapes user experience, and influences operational value. In this research, we treat LLMs as stochastic simulators and propose a pairwise comparison-based adaptive simulation experiment framework for identifying the optimal policy from a finite set of candidates. We consider two policy spaces: an unstructured space with no parametric assumption, and a structured space in which the data are generated from a preference model. For both settings, we characterize the fundamental data requirements for identifying the optimal policy with high probability. In the unstructured case, we derive a closed-form expression for the optimal sampling proportions, together with a clear operational interpretation. In the structured case, we formulate a regularized convex program to compute the optimal proportions. We then develop an adaptive experimental procedure, termed LLM-PO, for both policy spaces, and prove that it identifies the optimal policy with the desired statistical guarantee while asymptotically attaining the fundamental data requirements. Numerical experiments demonstrate that LLM-PO consistently outperforms benchmark methods and improves LLM performance.
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