ASDA: Automated Skill Distillation and Adaptation for Financial Reasoning

Fuente: arXiv
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Autores principales: Yim, Tik Yu, Tan, Wenting, Chan, Sum Yee, Lam, Tak-Wah, Yiu, Siu Ming
Formato: Preprint
Publicado: 2026
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author Yim, Tik Yu
Tan, Wenting
Chan, Sum Yee
Lam, Tak-Wah
Yiu, Siu Ming
author_facet Yim, Tik Yu
Tan, Wenting
Chan, Sum Yee
Lam, Tak-Wah
Yiu, Siu Ming
contents Adapting large language models (LLMs) to specialized financial reasoning typically requires expensive fine-tuning that produces model-locked expertise. Training-free alternatives have emerged, yet our experiments show that leading methods (GEPA and ACE) achieve only marginal gains on the FAMMA financial reasoning benchmark, exposing the limits of unstructured text optimization for complex, multi-step domain reasoning. We introduce Automated Skill Distillation and Adaptation (ASDA), a framework that automatically generates structured skill artifacts through iterative error-corrective learning without modifying model weights. A teacher model analyzes a student model's failures on financial reasoning tasks, clusters errors by subfield and error type, and synthesizes skill files containing reasoning procedures, code templates, and worked examples, which are dynamically injected during inference. Evaluated on FAMMA, ASDA achieves up to +17.33% improvement on arithmetic reasoning and +5.95% on non-arithmetic reasoning, substantially outperforming all training-free baselines. The resulting skill artifacts are human-readable, version-controlled, and compatible with the Agent Skills open standard, offering any organization with a labeled domain dataset a practical and auditable path to domain adaptation without weight access or retraining.
format Preprint
id arxiv_https___arxiv_org_abs_2603_16112
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle ASDA: Automated Skill Distillation and Adaptation for Financial Reasoning
Yim, Tik Yu
Tan, Wenting
Chan, Sum Yee
Lam, Tak-Wah
Yiu, Siu Ming
Computation and Language
Artificial Intelligence
Computational Engineering, Finance, and Science
Adapting large language models (LLMs) to specialized financial reasoning typically requires expensive fine-tuning that produces model-locked expertise. Training-free alternatives have emerged, yet our experiments show that leading methods (GEPA and ACE) achieve only marginal gains on the FAMMA financial reasoning benchmark, exposing the limits of unstructured text optimization for complex, multi-step domain reasoning. We introduce Automated Skill Distillation and Adaptation (ASDA), a framework that automatically generates structured skill artifacts through iterative error-corrective learning without modifying model weights. A teacher model analyzes a student model's failures on financial reasoning tasks, clusters errors by subfield and error type, and synthesizes skill files containing reasoning procedures, code templates, and worked examples, which are dynamically injected during inference. Evaluated on FAMMA, ASDA achieves up to +17.33% improvement on arithmetic reasoning and +5.95% on non-arithmetic reasoning, substantially outperforming all training-free baselines. The resulting skill artifacts are human-readable, version-controlled, and compatible with the Agent Skills open standard, offering any organization with a labeled domain dataset a practical and auditable path to domain adaptation without weight access or retraining.
title ASDA: Automated Skill Distillation and Adaptation for Financial Reasoning
topic Computation and Language
Artificial Intelligence
Computational Engineering, Finance, and Science
url https://arxiv.org/abs/2603.16112