Search arXivSearch

arXiv · 2601.06100

Filtering Beats Fine Tuning: A Bayesian Kalman View of In Context Learning in LLMs

Abstract

We present a theory-first framework that interprets inference-time adaptation in large language models (LLMs) as online Bayesian state estimation. Rather than modeling rapid adaptation as implicit optimization or meta-learning, we formulate task- and context-specific learning as the sequential inference of a low-dimensional latent adaptation state governed by a linearized state-space model. Under Gaussian assumptions, adaptation follows a Kalman recursion with closed-form updates for both the posterior mean and covariance. This perspective elevates epistemic uncertainty to an explicit dynamical variable. We show that inference-time learning is driven by covariance collapse, i.e., rapid contraction of posterior uncertainty induced by informative tokens, which typically precedes convergence of the posterior mean. Using observability conditions on token-level Jacobians, we establish stability of the Bayesian filter, prove exponential covariance contraction rates, and derive mean-square error bounds. Gradient descent, natural-gradient methods, and meta-learning updates arise as singular, noise-free limits of the filtering dynamics, positioning optimization-based adaptation as a degenerate approximation of Bayesian inference. The resulting theory provides a unified probabilistic account of in-context learning, parameter-efficient adaptation, and test-time learning without parameter updates. It yields explicit guarantees on stability and sample efficiency, offers a principled interpretation of prompt informativeness via information accumulation, and clarifies the role of uncertainty dynamics absent from existing accounts. Minimal illustrative experiments corroborate the qualitative predictions of the theory.

Explore related subjects

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Andrew Kiruluta. 2026-01-02. Filtering Beats Fine Tuning: A Bayesian Kalman View of In Context Learning in LLMs. https://arxiv.org/abs/2601.06100

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

Online Regularized Statistical Learning in Reproducing Kernel Hilbert Space With Non-Stationary Data

We study recursive regularized learning algorithms in the reproducing kernel Hilbert space (RKHS) with non-stationary online data streams. We introduce the concept of a random Tikhonov regularization path and decompose the tracking error of the algorithm's output for the regularization path into random difference equations in RKHS. We show that the tracking error vanishes in mean square and almost surely if the regularization path is slowly time-varying. Then, leveraging the monotonicity of inverse operators and the spectral decomposition of compact operators, and introducing the RKHS persistence of excitation condition, we develop a dominated convergence method to prove the mean square and almost sure consistency between the regularization path and the unknown function to be learned. Especially, for independent and non-identically distributed data streams, the mean square and almost sure consistency between the algorithm's output and the unknown function is achieved if the input data's marginal probability measures are slowly time-varying and the average measure over each fixed-length time period is uniformly above a strictly positive finite Borel measure.

cs.LG

Reflective Policy Optimization

On-policy reinforcement learning methods, like Trust Region Policy Optimization (TRPO) and Proximal Policy Optimization (PPO), often demand extensive data per update, leading to sample inefficiency. This paper introduces Reflective Policy Optimization (RPO), a novel on-policy extension that amalgamates past and future state-action information for policy optimization. This approach empowers the agent for introspection, allowing modifications to its actions within the current state. Theoretical analysis confirms that policy performance is monotonically improved and contracts the solution space, consequently expediting the convergence procedure. Empirical results demonstrate RPO's feasibility and efficacy in two reinforcement learning benchmarks, culminating in superior sample efficiency. The source code of this work is available at https://github.com/Edgargan/RPO.

cs.LG

Transductive Off-policy Proximal Policy Optimization

Proximal Policy Optimization (PPO) is a popular model-free reinforcement learning algorithm, esteemed for its simplicity and efficacy. However, due to its inherent on-policy nature, its proficiency in harnessing data from disparate policies is constrained. This paper introduces a novel off-policy extension to the original PPO method, christened Transductive Off-policy PPO (ToPPO). Herein, we provide theoretical justification for incorporating off-policy data in PPO training and prudent guidelines for its safe application. Our contribution includes a novel formulation of the policy improvement lower bound for prospective policies derived from off-policy data, accompanied by a computationally efficient mechanism to optimize this bound, underpinned by assurances of monotonic improvement. Comprehensive experimental results across six representative tasks underscore ToPPO's promising performance.

cs.LG