CASPER: Bridging Discrete and Continuous Prompt Optimization through Feedback-Guided Gradient Descent

Aryan Jain, Pushpendu Ghosh, Promod Yenigalla


Abstract
Workflow automation is critical for reducing manual efforts in industries, yet existing pipelines fail to handle generative tasks like summarization and extraction without pre-built tools, forcing human intervention. While LLM-based agents offer solutions, their creation depends heavily on prompt engineering—a resource-intensive process often yielding suboptimal results. Current automated approaches face a fundamental trade-off: discrete optimization produces overfitted prompts without convergence guarantees due to non-convex landscapes, while continuous gradient-based methods generate semantically incoherent prompts through embedding optimization. We propose CASPER, a framework bridging discrete and continuous prompt optimization through feedback-guided gradient descent in embedding space. CASPER employs a feedback module producing detailed error analyses that capture failure modes as optimization signals. These insights are projected with prompt tokens into embedding space to steer gradient descent. To preserve interpretability, we incorporate fluency regularization that penalizes incomprehensible tokens. We further accelerate convergence through synthetic data generation that oversamples failure cases, while also addressing data scarcity in industrial settings. We evaluate CASPER on WDC, DROP, GSM8K with F1 improvements of 2.3%, 1.6%, 2.3% and VQA, internal benchmarks showing accuracy improvements of 1.1%, 3%, demonstrating cross-domain generalizability.
Anthology ID:
2026.eacl-industry.32
Volume:
Proceedings of the 19th Conference of the European Chapter of the Association for Computational Linguistics (Volume 5: Industry Track)
Month:
March
Year:
2026
Address:
Rabat, Morocco
Editors:
Yevgen Matusevych, Gülşen Eryiğit, Nikolaos Aletras
Venue:
EACL
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
425–437
Language:
URL:
https://preview.aclanthology.org/ingest-eacl/2026.eacl-industry.32/
DOI:
Bibkey:
Cite (ACL):
Aryan Jain, Pushpendu Ghosh, and Promod Yenigalla. 2026. CASPER: Bridging Discrete and Continuous Prompt Optimization through Feedback-Guided Gradient Descent. In Proceedings of the 19th Conference of the European Chapter of the Association for Computational Linguistics (Volume 5: Industry Track), pages 425–437, Rabat, Morocco. Association for Computational Linguistics.
Cite (Informal):
CASPER: Bridging Discrete and Continuous Prompt Optimization through Feedback-Guided Gradient Descent (Jain et al., EACL 2026)
Copy Citation:
PDF:
https://preview.aclanthology.org/ingest-eacl/2026.eacl-industry.32.pdf