Optimizing Sparse Outcomes Through Dense Behavioral Signals via Value-Guided Preference Distillation
Ziyi Zhu, Daniel R. Cahn, Thomas D. Hull, Caitlin A. Stamatis, Olivier Tieleman, Guilherme B. Freire, Jinghong Chen
Abstract
Aligning multi-turn dialogue agents is usually framed as matching turn-level human preferences, yet direct optimization of long-term outcomes is often ineffective and prone to reward hacking. We formulate long-horizon dialogue optimization as a multi-objective reinforcement learning problem and train a multi-head value model that predicts a vector of observed user behaviors across multiple look-ahead horizons. Our findings demonstrate that a scalarized composite of dense auxiliary behavioral signals enables effective credit assignment and optimization of sparse outcomes. However, optimizing unconstrained single-objective proxies might induce policy degradations that are harmful when the agent is exposed to real users. To identify these failure modes prior to deployment, we establish a safety framework combining counterfactual user simulation with a validated dialogue-level outcome model to evaluate preference weightings and policy optimization methods. Finally, we demonstrate that distilling multi-objective value preferences into the policy via reference-anchored preference optimization matches on-policy online RL at a small fraction of its compute budget. Live A/B testing confirms that our distilled policy significantly improves long-term user retention, while simultaneously enhancing the positive behaviors and therapeutic-process markers.