SAGA: Structure-Attended Generative Action Embedding Model that encodes Multi-Surface User Action Sequences

Prior embedding models for sequential recommendation typically operate within a homogeneous action space, limiting their ability to capture cross-surface behavioral signals spanning distinct behavioral domains. We present SAGA, a generative action embedding model that encodes multi-surface user interaction sequences across a Financial Service organization's ecosystems, from checkout, peer-to-peer (P2P) transactions, in-app engagement, email to account actions, into a unified user representation for downstream recommendation tasks. Central to SAGA is a per-field tokenization schema that decomposes each action event into multiple field-level tokens (e.g. product, interaction, surface), enabling field-level attention and per-field training objectives that fused single-token approaches cannot support. Through an offline ablation study on loss formulation, tokenization granularity and training data scope, we isolate the contribution of each design choice. A downstream model integrated with SAGA-generated user embeddings delivers the strongest overall click and conversion lift across diverse downstream touchpoints, compared to all ablated and alternative architectures.

Cardinality-Decomposed Loss: Matching Training Objectives to Relation Structure in Heterogeneous Recommendation Graphs

Graph Neural Networks trained on heterogenous bipartite graphs form a common basis in recommendation systems. These graphs often express relations that vary in cardinality, for example, user-item preferences are one-to-many and user-attribute features are one-to-one. Traditionally, a unique loss function is applied for all of the network components which is often Bayesian Personalized Ranking (BPR). While BPR works well for the recommendation task, we find that it causes attribute embeddings to collapse to near-random geometry -- a silent failure that leaves standard ranking metrics largely unaffected and therefore invisible to conventional evaluation. This in turn pollutes user node embeddings, which are shaped by both edge types simultaneously, hurting downstream tasks like personalization, segmentation, etc. Here we propose a Cardinality-Decomposed Loss (CDL) that combines both Cross Entropy (CE) and BPR to enable the model to collectively optimize for relations across cardinalities. We confirm this CE-BPR conflict by showing the two losses compete in the shared encoder's parameter space. We evaluate CDL on five datasets spanning two structural configurations -- one-to-one attributes on user nodes (MovieLens-1M, Last.fm-360K, PayPal Audience Factory, BookCrossing) and on item nodes (Yelp) -- and find that CDL consistently improves discriminability in attribute embeddings. We also show that ranking (NDCG) improves when attributes carry meaningful preference signal, but conflicts with it when the correlation is weak. We use a lambda parameter to navigate this trade-off, and a lambda-sweep reveals that dataset behavior is governed by two graph properties -- semantic alignment and topology leakage. Semantic alignment measures whether the attribute predicts preferences, while topology leakage measures whether the graph's connectivity already encodes it.

NEMO-4-PAYPAL: Leveraging NVIDIA's Nemo Framework for empowering PayPal's Commerce Agent

We present the development and optimization of PayPal's Commerce Agent, powered by NEMO-4-PAYPAL, a multi-agent system designed to revolutionize agentic commerce on the PayPal platform. Through our strategic partnership with NVIDIA, we leveraged the NeMo Framework for LLM model fine-tuning to enhance agent performance. Specifically, we optimized the Search and Discovery agent by replacing our base model with a fine-tuned Nemotron small language model (SLM). We conducted comprehensive experiments using the llama3.1-nemotron-nano-8B-v1 architecture, training LoRA-based models through systematic hyperparameter sweeps across learning rates, optimizers (Adam, AdamW), cosine annealing schedules, and LoRA ranks. Our contributions include: (1) the first application of NVIDIA's NeMo Framework to commerce-specific agent optimization, (2) LLM powered fine-tuning strategy for retrieval-focused commerce tasks, (3) demonstration of significant improvements in latency and cost while maintaining agent quality, and (4) a scalable framework for multi-agent system optimization in production e-commerce environments. Our results demonstrate that the fine-tuned Nemotron SLM effectively resolves the key performance issue in the retrieval component, which represents over 50\% of total agent response time, while maintaining or enhancing overall system performance.