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RegionFed addresses a critical bottleneck in federated learning for retail search by operating at the gradient level rather than the parameter level, thereby avoiding the catastrophic collapse seen in transformer models with tied embeddings. This architecture-robust framework adaptively routes regions to optimal personalization strategies while maintaining differential privacy, achieving performance nearly identical to centralized training without data centralization. The approach demonstrates significant gains across diverse model architectures including T5 and RoBERTa, offering a scalable solution for handling data heterogeneity in large-scale AI systems.
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RegionFed: Federated Learning for Personalized Query Understanding in Heterogeneous Retail Environments

arXiv3 min read

arXiv:2609.05403v1 Announce Type: cross Abstract: Retail search systems serve diverse geographic regions with distinct query patterns, vocabularies, and product preferences, creating significant data heterogeneity that challenges both privacy-preserving training and model personalization. Federated learning offers a natural solution for privacy, but standard FL methods produce global models that sacrifice regional performance, while existing personalized FL approaches operate at the parameter level and catastrophically collapse on modern transformers (below 10\% accuracy on T5) due to tied embeddings and LayerNorm interactions. We introduce RegionFed, an \textit{architecture-robust} federated learning framework that sidesteps this failure by operating entirely at the gradient level. RegionFed uses the $\ell_2$ conflict between regional and global gradients as a unified signal that (i) diagnoses heterogeneity, (ii) routes each region to the cheapest sufficient personalization strategy, and (iii) adaptively controls personalization strength. Because it treats models as differentiable black boxes, RegionFed deploys on T5-Small, T5-3B, RoBERTa, and CNN with zero code changes, providing large gains on transformers (where parameter-level methods collapse) and consistent improvements on CNNs. Across three public datasets (Amazon ESCI, Amazon Reviews, LEAF-FEMNIST) and four architectures, RegionFed-Meta achieves 92.27\%, closing the gap to the privacy-violating centralized upper bound (Centralized + Regional Weighting: 92.04\%, $\Delta$=0.23pp, within 1$\sigma$) while providing $(\epsilon{\approx}0.60)$-differential privacy and $\mathcal{O}(1/\sqrt{T})$ convergence.

Abstract:Retail search systems serve diverse geographic regions with distinct query patterns, vocabularies, and product preferences, creating significant data heterogeneity that challenges both privacy-preserving training and model personalization. Federated learning offers a natural solution for privacy, but standard FL methods produce global models that sacrifice regional performance, while existing personalized FL approaches operate at the parameter level and catastrophically collapse on modern transformers (below 10\% accuracy on T5) due to tied embeddings and LayerNorm interactions. We introduce RegionFed, an \textit{architecture-robust} federated learning framework that sidesteps this failure by operating entirely at the gradient level. RegionFed uses the $\ell_2$ conflict between regional and global gradients as a unified signal that (i) diagnoses heterogeneity, (ii) routes each region to the cheapest sufficient personalization strategy, and (iii) adaptively controls personalization strength. Because it treats models as differentiable black boxes, RegionFed deploys on T5-Small, T5-3B, RoBERTa, and CNN with zero code changes, providing large gains on transformers (where parameter-level methods collapse) and consistent improvements on CNNs. Across three public datasets (Amazon ESCI, Amazon Reviews, LEAF-FEMNIST) and four architectures, RegionFed-Meta achieves 92.27\%, closing the gap to the privacy-violating centralized upper bound (Centralized + Regional Weighting: 92.04\%, $\Delta$=0.23pp, within 1$\sigma$) while providing $(\epsilon{\approx}0.60)$-differential privacy and $\mathcal{O}(1/\sqrt{T})$ convergence.

Machine Learning (cs.LG); Artificial Intelligence (cs.AI)

arXiv:2609.05403 [cs.LG]

(or arXiv:2609.05403v1 [cs.LG] for this version)

https://doi.org/10.48550/arXiv.2609.05403 Focus to learn more arXiv-issued DOI via DataCite (pending registration)

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Full text under the publisher's open licence · 297 words

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