LatentRM is a reward modeling framework that learns intermediate reasoning traces as discrete latent variables to explicitly maximize the likelihood of downstream scalar rewards through on-policy optimization of the latent reasoning space end-to-end.
Abstract
Reward models (RMs) are central to aligning large language models with human preferences via reinforcement learning. Although traditional scalar RMs enable efficient and probabilistic reward modeling, they rely on superficial cues that fail to generalize to complex or out-of-distribution (OOD) tasks. Conversely, generative RMs leverage extensive reasoning to improve robustness on challenging tasks, but their natural language-based scores lack the numerical flexibility and probabilistic interpretability that scalar RMs offer. While recent approaches combine both paradigms through off-policy multi-task learning, such parallel optimization does not guarantee that generated reasoning traces actively align with or benefit downstream scalar reward prediction. To address this mismatch, we propose LatentRM, a reward modeling framework that learns intermediate reasoning traces as discrete latent variables to explicitly maximize the likelihood of downstream scalar rewards. Through on-policy optimization of the latent reasoning space end-to-end, LatentRM tightly couples deep reasoning-based evaluation with precise scoring. Extensive validations on in-distribution and OOD datasets and RLHF show that LatentRM outperforms scalar, generative, and hybrid RMs on preference modeling and policy alignment across tasks ranging from open-ended conversation to complex reasoning.
Reinforcement learning with verifiable rewards has become the predominant recipe for eliciting test-time scaling in explicit Chain-of-Thought reasoners. Yet this scaling path remains computationally costly, since every intermediate step must be decoded as a language token. Latent reasoning instead carries intermediate computation as continuous vectors and already matches or surpasses explicit CoT at far shorter horizons. Despite this promise, latent reasoners remain largely imitation-bound, while explicit CoT has already moved past imitation via outcome-reward RL. Latent trajectories lack a tractable per-step likelihood and an adaptive stopping interface under fixed thinking budgets, so outcome rewards cannot elicit latent test-time scaling. We introduce Surrogate Latent Policy Optimization (SLPO) to bring outcome-reward RL to autoregressive latent reasoners: an empirical surrogate policy density over latent transitions for trajectory-level credit assignment, and a correctness-supervised stopping head that outcome-reward optimization refines into a variable-horizon policy. Across continuous and soft thinking settings, SLPO improves Pass@$k$ under parallel sampling and allocates longer latent computation to harder instances with higher deterministic accuracy.
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