PROOF-Gen: From Optimized Data to Better Distillation

PROOF-Gen is a method that improves distillation of tool‑calling models by recovering successful trajectories from teacher failures. It uses per‑scenario prompt optimization to generate corrective guidance that steers the teacher to a passing trajectory, then removes this guidance before training so the student learns from clean demonstrations. On τ2‑bench, PROOF-Gen recovers 93% of failed scenarios, boosting Qwen3‑4B‑Instruct‑2507’s Pass^1 from 0.132 to 0.529 and improving Gemma 4 E4B‑it by 7.2pp on BFCL v4 multi‑turn, while also raising deployed on‑device model performance by up to 5.0pp across response‑quality metrics.

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• agents
• fine-tuning
• efficiency