Can Textual Gradient Work in Federated Learning?
Not on the map. Why?
Abstract (arXiv)
Recent studies highlight the promise of LLM-based prompt optimization, especially with TextGrad, which automates differentiation'' via texts and backpropagates textual feedback. This approach facilitates training in various real-world applications that do not support numerical gradient propagation or loss calculation. In this paper, we systematically explore the potential and challenges of incorporating textual gradient into Federated Learning (FL). Our contributions are fourfold. Firstly, we introduce a novel FL paradigm, Federated Textual Gradient (FedTextGrad), that allows clients to upload locally optimized prompts derived from textual gradients, while the server aggregates the received prompts. Unlike traditional FL frameworks, which are designed for numerical aggregation, FedTextGrad is specifically tailored for handling textual data, expanding the applicability of FL to a broader range of problems that lack well-defined numerical loss functions. Secondly, building on this design, we conduct extensive experiments to explore the feasibility of FedTextGrad. Our findings highlight the importance of properly tuning key factors (e.g., local steps) in FL training. Thirdly, we highlight a major challenge in FedTextGrad aggregation: retaining essential information from distributed prompt updates. Last but not least, in response to this issue, we improve the vanilla variant of FedTextGrad by providing actionable guidance to the LLM when summarizing client prompts by leveraging the Uniform Information Density principle. Through this principled study, we enable the adoption of textual gradients in FL for optimizing LLMs, identify important issues, and pinpoint future directions, thereby opening up a new research area that warrants further investigation.
Key facts. Cited by 15 papers in the map (data through 14 Oct 2026). Builds on 50 of its 56 references that are in the map. First posted on arXiv 27 Feb 2025.
Builds on
50 of 56 references.
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Citing papers per year: 2025: 7; 2026: 8.
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- 2025Federated In-Context Learning: Iterative Refinement for Improved Answer Qualitycited by 8
- 2025DoctorRAG: Medical RAG Fusing Knowledge with Patient Analogy through Textual Gradientscited by 5
- 2025Compound AI Systems Optimization: A Survey of Methods, Challenges, and Future Directionscited by 4
- 2025ToolGrad: Efficient Tool-use Dataset Generation with Textual "Gradients"cited by 4
- 2025Aspect-Based Summarization with Self-Aspect Retrieval Enhanced Generationcited by 3
- 2026TextResNet: Decoupling and Routing Optimization Signals in Compound AI Systems via Deep Residual Tuningcited by 3
- 2026Typed Federated Artifacts for the Agentic Web:Sharing Tool-Routing Knowledge Across Frozen,Heterogeneous LLM Agentscited by 2
- 2026Textual Equilibrium Propagation for Deep Compound AI Systemscited by 1
- 2026FERA: Uncertainty-Aware Federated Reasoning for Large Language Modelscited by 1
- 2025FedRecon: Missing Modality Reconstruction in Heterogeneous Distributed Environmentscited by 0
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- 2026Typed Federated Artifacts for the Agentic Web:Sharing Tool-Routing Knowledge Across Frozen,Heterogeneous LLM Agents6 Sep 2026
- 2026CPInj: Uncovering Prompt Injection Risks in Textual Collaborative Prompt Optimization21 Jul 2026
- 2026FERA: Uncertainty-Aware Federated Reasoning for Large Language Models11 May 2026
- 2026TextResNet: Decoupling and Routing Optimization Signals in Compound AI Systems via Deep Residual Tuning9 Feb 2026
- 2026Synapse: Federated Tool Routing via Typed Compendium Artifacts31 Jan 2026
- 2026Textual Equilibrium Propagation for Deep Compound AI Systems28 Jan 2026
- 2025ToolGrad: Efficient Tool-use Dataset Generation with Textual "Gradients"6 Aug 2025
- 2025Compound AI Systems Optimization: A Survey of Methods, Challenges, and Future Directions9 Jun 2025
- 2025Federated In-Context Learning: Iterative Refinement for Improved Answer Quality9 Jun 2025
- 2025Federated Foundation Language Model Post-Training Should Focus on Open-Source Models29 May 2025
- 2025Federated In-Context Learning: Iterative Refinement for Improved Answer Qualitycited by 8
- 2025Compound AI Systems Optimization: A Survey of Methods, Challenges, and Future Directionscited by 4
- 2026TextResNet: Decoupling and Routing Optimization Signals in Compound AI Systems via Deep Residual Tuningcited by 3
- 2026Textual Equilibrium Propagation for Deep Compound AI Systemscited by 1
- 2025FedRecon: Missing Modality Reconstruction in Heterogeneous Distributed Environmentscited by 0
- 2025Federated Foundation Language Model Post-Training Should Focus on Open-Source Modelscited by 0
- 2026Synapse: Federated Tool Routing via Typed Compendium Artifactscited by 0
- 2026TextResNet: Decoupling and Routing Optimization Signals in Compound AI Systems via Deep Residual Tuning9 Feb 2026
- 2026Synapse: Federated Tool Routing via Typed Compendium Artifacts31 Jan 2026
- 2026Textual Equilibrium Propagation for Deep Compound AI Systems28 Jan 2026
- 2025Compound AI Systems Optimization: A Survey of Methods, Challenges, and Future Directions9 Jun 2025
- 2025Federated In-Context Learning: Iterative Refinement for Improved Answer Quality9 Jun 2025
- 2025Federated Foundation Language Model Post-Training Should Focus on Open-Source Models29 May 2025
- 2025FedRecon: Missing Modality Reconstruction in Heterogeneous Distributed Environments14 Apr 2025