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.

Beyond Benchmarks: A Novel Framework for Domain-Specific LLM Evaluation and Knowledge Mapping

The paper addresses two critical challenges in language model (LM) evaluation: creating reliable domain-specific benchmarks and understanding knowledge representation during domain adaptation. We introduce a deterministic pipeline that converts raw domain corpora into completion-type benchmarks without relying on LMs or human curation, eliminating benchmark contamination issues while enabling evaluation on the latest domain data. Our approach generates domain-specific keywords and related word lists using TF and Term TF-IDF methods and constructs prompt-target pairs. We evaluate models by measuring their ability to complete these prompts with the correct domain-specific targets, providing a direct assessment of domain knowledge with low computational cost. Through comprehensive experiments across multiple models (GPT-2 medium/XL, Llama-2/3.1, OLMo-2, Qwen-2, Mistral) and domains, we demonstrate that our benchmark strongly correlates with expert-generated benchmarks while providing a more accurate measure of domain knowledge than traditional perplexity metrics. We reveal that domain adaptation happens rapidly in smaller models (within 500 steps) and illustrate a new approach to domain knowledge evaluation in base models during training for early stopping. By extending mechanistic analysis to domain adaptation, we discover that initial-to-mid layers are primarily responsible for attribute extraction, while later layers focus on next token prediction. Furthermore, we show that during adaptation, forgetting begins in the middle layers, where attribute extraction happens and is amplified in later layers. Our work provides both a practical evaluation methodology for domain-specific LMs and novel insights into knowledge representation during adaptation, with implications for more efficient fine-tuning strategies and targeted approaches to mitigate catastrophic forgetting.