{"id":1181856,"date":"2026-08-16T12:22:00","date_gmt":"2026-08-16T19:22:00","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/research\/publication\/privileged-but-biased-how-pi-conditioned-teachers-break-self-distillation\/"},"modified":"2026-08-20T12:06:03","modified_gmt":"2026-08-20T19:06:03","slug":"privileged-but-biased-how-pi-conditioned-teachers-break-self-distillation","status":"publish","type":"msr-research-item","link":"https:\/\/www.microsoft.com\/en-us\/research\/publication\/privileged-but-biased-how-pi-conditioned-teachers-break-self-distillation\/","title":{"rendered":"Privileged, but Biased: How PI-Conditioned Teachers Break Self-Distillation"},"content":{"rendered":"\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Self-distillation (SD) has emerged as a compute-efficient alternative to reinforcement learning with verifiable rewards: a self-teacher, conditioned on privileged information (PI) about the answer such as a reference solution, supplies dense per-token supervision to a student that never sees it. Reported gains, however, come almost exclusively from narrow, low-difficulty settings, leaving open a basic question: as a lone objective, with no reward term, does SD teach anything? We reproduce SDPO&#8217;s reported gains in its easy setting, then apply the identical setup to difficult tasks and find that it does not. Across question answering, mathematics, coding, and multi-turn agentic tool use, across reasoning modes, model sizes, and forms of PI, and under both the SDPO and OPSD recipes, the per-token loss falls steadily while validation accuracy does not improve and typically degrades. We explain this failure through a single causal chain from the loss to the model it produces. The chain begins with PI bias: having seen one particular reference solution, the teacher&#8217;s per-token target is pulled toward that trajectory rather than toward correctness in general, an effect we quantify with a PI Bias Score. Trained to match this target everywhere, the student&#8217;s objective becomes nearly blind to whether a rollout is correct, and the loss it assigns falls mostly on low-information tokens like stopwords, punctuation, uncertainty markers, rather than those that determine the answer; within correct rollouts the exploratory tokens incur the highest divergence, so it penalizes the hesitation that reasoning requires. The result is a flatter, less decisive student that is no better at reasoning: as a lone objective, SD optimizes a signal decoupled from task success.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Self-distillation (SD) has emerged as a compute-efficient alternative to reinforcement learning with verifiable rewards: a self-teacher, conditioned on privileged information (PI) about the answer such as a reference solution, supplies dense per-token supervision to a student that never sees it. Reported gains, however, come almost exclusively from narrow, low-difficulty settings, leaving open a basic question: [&hellip;]<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"msr-url-field":"","msr-podcast-episode":"","msrModifiedDate":"","msrModifiedDateEnabled":false,"ep_exclude_from_search":false,"_classifai_error":"","msr-author-ordering":[{"type":"text","value":"Sarthak Harne","user_id":0},{"type":"text","value":"Chinmay Karkar","user_id":0},{"type":"user_nicename","value":"Yash Pandya","user_id":"44036"},{"type":"user_nicename","value":"Ahmed Awadallah","user_id":"31979"},{"type":"user_nicename","value":"Akshay 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