Hierarchical Residual Policy Optimization for Generative Recommendations

Generative recommenders select items by autoregressively decoding semantic identifiers (SIDs), whose token positions induce a coarse-to-fine hierarchy over the item space. In practice, SID decoders are trained via supervised next-token prediction, which imitates logged trajectories rather than directly optimizing downstream utility. This motivates post-training with outcome feedback to guide decoding toward higher utility. However, logged feedback is only observed for the final exposed item, causing most posttraining methods to operate at the item level and broadcast the same terminal signal across all SID tokens. As a result, token-level credit assignment becomes sparse, high-variance, and layer-dependent. To this end, we propose Hierarchical Residual Policy Optimization (HRPO), a post-training framework that converts item-level outcomes into dense, token-aligned learning signals for conservative token-wise improvement. Specifically, HRPO first estimates SID prefix-level utilities via group-wise reward smoothing over featurebased user clusters. It then decomposes these utilities into residual token credits and accumulates them into credit-to-go signals. Finally, Residual-Return Policy Optimization (RRPO) optimizes the residual credits using clipped updates, group-normalized advantages, and KL regularization to preserve stability. Experiments on a public dataset and an online A/B test in a large-scale commercial system show consistent gains in session-level utility and key business metrics. Source code and the archived artifact are available for reproduction 1 . * This work was done during Kaifeng Guo's internship at Kuaishou Technology.