SAGE: Steering Dialog Generation with Future-Aware State-Action Augmentation

AbstractRecent advances in large language models have enabled impressive task-oriented applications, yet building emotionally intelligent chatbots for natural, strategic conversations remains challenging. Current approaches often assume a single “ground truth” for emotional responses, overlooking the subjectivity of human emotion. We present a novel perspectivist approach, SAGE, that models multiple perspectives in dialogue generation using latent variables. At its core is the State-Action Chain (SAC), which augments standard fine-tuning with latent variables capturing diverse emotional states and conversational strategies between turns, in a future-looking manner. During inference, these variables are generated before each response, enabling multi-perspective control while preserving natural interactions. We also introduce a self-improvement pipeline combining dialogue tree search, LLM-based reward modeling, and targeted fine-tuning to optimize conversational trajectories. Experiments show improved LLM-based judgments while maintaining strong general LLM performance. The discrete latent variables further enable search-based strategies and open avenues for state-level reinforcement learning in dialogue systems, where learning can occur at the state level rather than the token level.