CARE: Grounded Recursive Self-Improvement for Production Customer-Service Agents

Yanbei Jiang, Chao Lei, Rena Gao, Xiaochen Zhao, Yuchen Ge +15

Recursive self-improvement (RSI) in production agents involves transforming accumulated experience into reliable model updates while adapting to evolving business policies. We present CARE (Customer-service Agent Retrospective and Evolve), a grounded RSI framework that operationalizes this process in customer service. Its goal is to replace a frontier proprietary incumbent with an in-house mid-sized model that continues learning after deployment. After a one-time cold start on governed production traces, the current model serves production traffic alongside the incumbent, and its own failures drive the next update. A 24/7 inspection process establishes failures through evidence-blinded, independently reviewed judgments. Attribution separates model errors from defects in Skills, tools, or the harness, routing component failures to repair. Model-attributable trajectories are truncated at the first erroneous decision and paired with verified repairs. On-policy self-distillation (OPSD) then updates the model using the same model as teacher, with the diagnosis and repair supplied as privileged information unavailable to the student. To support continued evolution as business…