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This paper provides a critical architectural comparison for deploying distilled student models in large-scale e-commerce, demonstrating that generative SLMs outperform discriminative baselines on complex conversational data and scale better with expanding topic sets. The findings offer practical guidance for engineers balancing latency constraints against performance when handling informal user-generated content and long-tail distributions.
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Multi-Label Topic Assignment via LLM Distillation: A Comparative Analysis of Generative vs. Discriminative Student Models

arXiv3 min read

arXiv:2610.09063v1 Announce Type: cross Abstract: Multi-label topic assignment for user-generated content (UGC) -- including product reviews and buyer-seller conversations -- poses unique scalability challenges in large-scale e-commerce due to informal language, extreme label sparsity, and rapidly evolving taxonomies. While utilizing Large Language Models (LLMs) as labeling oracles to distill ground-truth data has emerged as an industry standard to bypass prohibitive manual annotation costs, determining the optimal, low-latency architecture for the resulting student models remains an open challenge. To address this, we conduct a comprehensive evaluation across Small Language Model (SLM) parameter scales (1B, 4B, and 8B) and architectural paradigms (causal generative versus bidirectional discriminative). Comparing generative text-to-label classifiers against discriminative baselines (DeBERTa-V3 and ModernBERT), our analysis reveals a crucial data-dependent trade-off: while discriminative models outperform ultra-lightweight generative models on structured product reviews, even the smallest 1B generative model surpasses discriminative baselines on complex, multi-turn conversational data. Furthermore, generative models maintain robust performance under massive label-set expansion (up to 112 topics) and severe long-tail distributions, whereas discriminative baselines suffer a 35% drop in Macro-F1 at scale. Finally, we detail the successful production deployment of these optimized models across both product review and conversational domains, demonstrating strict latency compliance and tangible business impact at a global marketplace scale.

Title:Multi-Label Topic Assignment via LLM Distillation: A Comparative Analysis of Generative vs. Discriminative Student Models

Abstract:Multi-label topic assignment for user-generated content (UGC) -- including product reviews and buyer-seller conversations -- poses unique scalability challenges in large-scale e-commerce due to informal language, extreme label sparsity, and rapidly evolving taxonomies. While utilizing Large Language Models (LLMs) as labeling oracles to distill ground-truth data has emerged as an industry standard to bypass prohibitive manual annotation costs, determining the optimal, low-latency architecture for the resulting student models remains an open challenge. To address this, we conduct a comprehensive evaluation across Small Language Model (SLM) parameter scales (1B, 4B, and 8B) and architectural paradigms (causal generative versus bidirectional discriminative). Comparing generative text-to-label classifiers against discriminative baselines (DeBERTa-V3 and ModernBERT), our analysis reveals a crucial data-dependent trade-off: while discriminative models outperform ultra-lightweight generative models on structured product reviews, even the smallest 1B generative model surpasses discriminative baselines on complex, multi-turn conversational data. Furthermore, generative models maintain robust performance under massive label-set expansion (up to 112 topics) and severe long-tail distributions, whereas discriminative baselines suffer a 35% drop in Macro-F1 at scale. Finally, we detail the successful production deployment of these optimized models across both product review and conversational domains, demonstrating strict latency compliance and tangible business impact at a global marketplace scale.

Preprint. 9 pages

Machine Learning (cs.LG); Computation and Language (cs.CL)

arXiv:2610.09063 [cs.LG]

(or arXiv:2610.09063v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2610.09063 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 317 words

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