# Federated Customization of Large Models: Approaches, Experiments, and Insights

arXiv: https://arxiv.org/abs/2601.00526 · HTML: https://mlsanity.com/paper/2601.00526/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 12 of its 15 references that are in the map.
- First posted on arXiv 2 Jan 2026.

## Builds on (most cited first, 12 of 12)

- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [Prefix-Tuning: Optimizing Continuous Prompts for Generation](https://mlsanity.com/paper/2101.00190/) (2021)
- [On the Convergence of FedAvg on Non-IID Data](https://mlsanity.com/paper/1907.02189/) (2019)
- [Distilling Task-Specific Knowledge from BERT into Simple Neural Networks](https://mlsanity.com/paper/1903.12136/) (2019)
- [On the Effectiveness of Adapter-based Tuning for Pretrained Language Model Adaptation](https://mlsanity.com/paper/2106.03164/) (2021)
- [PromptFL: Let Federated Participants Cooperatively Learn Prompts Instead of Models -- Federated Learning in Age of Foundation Model](https://mlsanity.com/paper/2208.11625/) (2022)
- [SLoRA: Federated Parameter Efficient Fine-Tuning of Language Models](https://mlsanity.com/paper/2308.06522/) (2023)
- [From Words to Numbers: Your Large Language Model Is Secretly A Capable Regressor When Given In-Context Examples](https://mlsanity.com/paper/2404.07544/) (2024)
- [Why Larger Language Models Do In-context Learning Differently?](https://mlsanity.com/paper/2405.19592/) (2024)
- [C-FedRAG: A Confidential Federated Retrieval-Augmented Generation System](https://mlsanity.com/paper/2412.13163/) (2024)
- [Exploring Parameter-Efficient Fine-Tuning to Enable Foundation Models in Federated Learning](https://mlsanity.com/paper/2210.01708/) (2022)

## Abstract (arXiv)

In this article, we explore federated customization of large models and highlight the key challenges it poses within the federated learning framework. We review several popular large model customization techniques, including full fine-tuning, efficient fine-tuning, prompt engineering, prefix-tuning, knowledge distillation, and retrieval-augmented generation. Then, we discuss how these techniques can be implemented within the federated learning framework. Moreover, we conduct experiments on federated prefix-tuning, which, to the best of our knowledge, is the first trial to apply prefix-tuning in the federated learning setting. The conducted experiments validate its feasibility with performance close to centralized approaches. Further comparison with three other federated customization methods demonstrated its competitive performance, satisfactory efficiency, and consistent robustness.