# LACE: Loss-Adaptive Capacity Expansion for Continual Learning

arXiv: https://arxiv.org/abs/2603.28611 · HTML: https://mlsanity.com/paper/2603.28611/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 8 of its 17 references that are in the map.
- First posted on arXiv 30 Mar 2026.

## Builds on (most cited first, 8 of 8)

- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Overcoming catastrophic forgetting in neural networks](https://mlsanity.com/paper/1612.00796/) (2016)
- [Switch Transformers: Scaling to Trillion Parameter Models with Simple and Efficient Sparsity](https://mlsanity.com/paper/2101.03961/) (2021)
- [Gradient Episodic Memory for Continual Learning](https://mlsanity.com/paper/1706.08840/) (2017)
- [Progressive Neural Networks](https://mlsanity.com/paper/1606.04671/) (2016)
- [Toy Models of Superposition](https://mlsanity.com/paper/2209.10652/) (2022)
- [PackNet: Adding Multiple Tasks to a Single Network by Iterative Pruning](https://mlsanity.com/paper/1711.05769/) (2017)
- [Towards a Unified View of Parameter-Efficient Transfer Learning](https://mlsanity.com/paper/2110.04366/) (2021)

## Abstract (arXiv)

Fixed representational capacity is a fundamental constraint in continual learning: practitioners must guess an appropriate model width before training, without knowing how many distinct concepts the data contains. We propose LACE (Loss-Adaptive Capacity Expansion), a simple online mechanism that expands a model's representational capacity during training by monitoring its own loss signal. When sustained loss deviation exceeds a threshold - indicating that the current capacity is insufficient for newly encountered data - LACE adds new dimensions to the projection layer and trains them jointly with existing parameters. Across synthetic and real-data experiments, LACE triggers expansions exclusively at domain boundaries (100% boundary precision, zero false positives), matches the accuracy of a large fixed-capacity model while starting from a fraction of its dimensions, and produces adapter dimensions that are collectively critical to performance (3% accuracy drop when all adapters removed). We further demonstrate unsupervised domain separation in GPT-2 activations via layer-wise clustering, showing a U-shaped separability curve across layers that motivates adaptive capacity allocation in deep networks. LACE requires no labels, no replay buffers, and no external controllers, making it suitable for on-device continual learning under resource constraints.