BFSI insights

Natural Language Reinforcement Learning

Published 28 May 2025 ยท arXiv
arXiv preview

Key figures & insights

  • NLRL achieves 85% board evaluation accuracy vs 61% for baseline LLMs in 5x5 breakthrough game
  • Win rates improve from 0.4 to 0.9 (125% increase) in tic-tac-toe against stochastic opponents
  • Language TD estimation with 8 variations and 3 look-ahead steps reduces average reward from -27.29 to -11.19 in maze navigation
  • Traditional RL suffers from Chain-of-Thought degradation, producing meaningless reasoning after training

Implications

  • Enables active learning vs passive policy gradient methods that rely on chance sampling of good actions
  • Language Value Functions provide interpretable rationale for decisions, addressing traditional RL's "what but not why" limitation
  • Framework applicable to any LLM-based agent system using reinforcement learning

Required action

  • Consider NLRL for applications requiring explainable AI decisions in sequential environments
  • Evaluate framework for trading algorithms, risk management systems requiring audit trails

About the authors

  • Multi-institutional collaboration led by researchers from UCL, NUS, Brown University, and Shanghai Jiao Tong University
  • Published as preprint on arXiv, focuses on foundational research bridging natural language processing and reinforcement learning
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