Supervised fine-tuning of large language models relies on human-annotated data, yet annotation pipelines routinely involve multiple crowdworkers of heterogeneous expertise. Standard practice aggregates labels via majority vote or simple averaging, discarding annotator identity and causing the model to absorb the errors of unreliable annotators into its parameters. We propose REALM, which jointly learns the model parameters and a scalar expertise value for each annotator, entirely unsupervised and requiring nothing beyond annotator identity. The key idea is to model each observed label as a mixture between the model’s prediction and a uniform random guess, weighted by the annotator’s learned expertise. REALM applies to any task with a fixed label set, and extends to multiple tasks via a learned expertise matrix. On four text-classification datasets with real crowdsourced annotations, REALM is the best method in all 12 configurations of the three heterogeneous-annotator datasets, improving on the strongest applicable baseline, including majority vote and Dawid–Skene aggregation, by +2.9 points on average. On five question answering benchmarks with simulated noisy labels, it outperforms naive noisy fine-tuning in 152 of 162 configurations, by +5.0 points on average, with gains that grow with model capacity. The learned expertise additionally recovers annotator reliability without ever observing it. Our code is available at https://github.com/sajjad-ucsb/REALM.

While parameter-efficient fine-tuning (PEFT) techniques like Low-Rank Adaptation (LoRA) offer computationally efficient adaptations of Large Language Models (LLMs), their practical deployment often assumes centralized data and training environments. However, real-world scenarios frequently involve distributed, privacy-sensitive datasets that require decentralized solutions. Federated learning (FL) addresses data privacy by coordinating model updates across clients, but it is typically based on centralized aggregation through a parameter server, which can introduce bottlenecks and communication constraints. Decentralized learning, in contrast, eliminates this dependency by enabling direct collaboration between clients, improving scalability and efficiency in distributed environments. Despite its advantages, decentralized LLM fine-tuning remains underexplored. In this work, we propose Dec-LoRA, an algorithm for decentralized fine-tuning of LLMs based on LoRA. Through extensive experiments on BERT and LLaMA-2 models, we show that Dec-LoRA maintains performance comparable to centralized LoRA across various conditions, including data heterogeneity and quantization constraints. This highlights its potential for scalable LLM fine-tuning in decentralized environments.

Parameter-efficient fine-tuning (PEFT) methods typically assume that Large Language Models (LLMs) are trained on data from a single device or client. However, real-world scenarios often require fine-tuning these models on private data distributed across multiple devices. Federated Learning (FL) offers an appealing solution by preserving user privacy, as sensitive data remains on local devices during training. Nonetheless, integrating PEFT methods into FL introduces two main challenges: communication overhead and data heterogeneity. In this paper, we introduce FedTT and FedTT+, methods for adapting LLMs by integrating tensorized adapters into client-side models’ encoder/decoder blocks. FedTT is versatile and can be applied to both cross-silo FL and large-scale cross-device FL. FedTT+, an extension of FedTT tailored for cross-silo FL, enhances robustness against data heterogeneity by adaptively freezing portions of tensor factors, further reducing the number of trainable parameters. Experiments on BERT and LLaMA models demonstrate that our proposed methods successfully address data heterogeneity challenges and perform on par or even better than existing federated PEFT approaches while achieving up to 10× reduction in communication cost.