# AdsWorldEngine: A Self-Evolving Conversational Advertising Agent through Orchestrator and Tool Coevolution

arXiv: https://arxiv.org/abs/2608.13833 · HTML: https://mlsanity.com/paper/2608.13833/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 25 of its 44 references that are in the map.
- First posted on arXiv 13 Aug 2026.

## Builds on (most cited first, 25 of 25)

- [Proximal Policy Optimization Algorithms](https://mlsanity.com/paper/1707.06347/) (2017)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Reflexion: Language Agents with Verbal Reinforcement Learning](https://mlsanity.com/paper/2303.11366/) (2023)
- [Toolformer: Language Models Can Teach Themselves to Use Tools](https://mlsanity.com/paper/2302.04761/) (2023)
- [Self-Refine: Iterative Refinement with Self-Feedback](https://mlsanity.com/paper/2303.17651/) (2023)
- [G-Eval: NLG Evaluation using GPT-4 with Better Human Alignment](https://mlsanity.com/paper/2303.16634/) (2023)
- [Self-RAG: Learning to Retrieve, Generate, and Critique through Self-Reflection](https://mlsanity.com/paper/2310.11511/) (2023)
- [Understanding R1-Zero-Like Training: A Critical Perspective](https://mlsanity.com/paper/2503.20783/) (2025)
- [WebShop: Towards Scalable Real-World Web Interaction with Grounded Language Agents](https://mlsanity.com/paper/2207.01206/) (2022)
- [On-Policy Distillation of Language Models: Learning from Self-Generated Mistakes](https://mlsanity.com/paper/2306.13649/) (2023)
- [API-Bank: A Comprehensive Benchmark for Tool-Augmented LLMs](https://mlsanity.com/paper/2304.08244/) (2023)
- [Prometheus: Inducing Fine-grained Evaluation Capability in Language Models](https://mlsanity.com/paper/2310.08491/) (2023)
- [AgentTuning: Enabling Generalized Agent Abilities for LLMs](https://mlsanity.com/paper/2310.12823/) (2023)
- [KTO: Model Alignment as Prospect Theoretic Optimization](https://mlsanity.com/paper/2402.01306/) (2024)
- [FireAct: Toward Language Agent Fine-tuning](https://mlsanity.com/paper/2310.05915/) (2023)
- [ToolkenGPT: Augmenting Frozen Language Models with Massive Tools via Tool Embeddings](https://mlsanity.com/paper/2305.11554/) (2023)
- [CritiqueLLM: Towards an Informative Critique Generation Model for Evaluation of Large Language Model Generation](https://mlsanity.com/paper/2311.18702/) (2023)
- [Truthful Aggregation of LLMs with an Application to Online Advertising](https://mlsanity.com/paper/2405.05905/) (2024)
- [Auctions with LLM Summaries](https://mlsanity.com/paper/2404.08126/) (2024)
- [Striking Gold in Advertising: Standardization and Exploration of Ad Text Generation](https://mlsanity.com/paper/2309.12030/) (2023)
- [Detecting Generated Native Ads in Conversational Search](https://mlsanity.com/paper/2402.04889/) (2024)
- [Ads that Talk Back: Implications and Perceptions of Injecting Personalized Advertising into LLM Chatbots](https://mlsanity.com/paper/2409.15436/) (2024)
- [GEM-Bench: A Benchmark for Ad-Injected Response Generation within Generative Engine Marketing](https://mlsanity.com/paper/2509.14221/) (2025)

## Abstract (arXiv)

Conversational advertising aims to deliver useful ads within multi-turn assistant interactions. Unlike conventional query-based advertising, where the user's intent is often expressed in a short standalone query, conversational ads must infer latent commercial intent from the current user query, the assistant response, and dialogue history while also deciding whether an ad would be helpful rather than intrusive. We propose AdsWorldEngine, an agentic framework for conversational advertising. AdsWorldEngine uses an Opportunity Gate to determine whether ads should be shown, an Orchestrator to generate commercial intents, call advertising tools, and construct a top-3 ad slate, and an Evaluator to score delivered ads for offline optimization. The central contribution is an iterative actor-tool training procedure: we first train the Orchestrator with supervised fine-tuning and agentic reinforcement learning, then use high- and low-reward rollouts to construct preference data to train tools. This creates a self-improving loop in which the system learns not only how to use advertising tools, but also how to improve them from rewarded behavior. To support subjective production decisions, we introduce label grounded judgment modeling, which trains judgment models from human labels collected under explicit guidelines. It enriches labels with thinking traces, filters inconsistent rationales through reflection, and further optimizes binary judgments with a cost sensitive GRPO variant that preserves asymmetric reward gaps. Offline, AdsWorldEngine improves diversity by 60% and relevance by 80% over the current production ad delivery system. In an online A/B test, it increases RPM by 22% and ads coverage by 74%.