Beyond supervised fine-tuning (SFT) and human feedback (RLHF), reinforcement learning (RL) in simulated environments is the next evolution. These "playgrounds" teach models to handle messy, multi-step, real-world tasks where current models often fail catastrophically.

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Algorithms like GRPO are powerful but require parallel rollouts in a reproducible environment. Building and maintaining these high-fidelity sandboxes, complete with realistic data and failure modes, is the hardest part of implementing RL today and a significant barrier for most companies.

Training AI agents to execute multi-step business workflows demands a new data paradigm. Companies create reinforcement learning (RL) environments—mini world models of business processes—where agents learn by attempting tasks, a more advanced method than simple prompt-completion training (SFT/RLHF).

AI labs like Anthropic find that mid-tier models can be trained with reinforcement learning to outperform their largest, most expensive models in just a few months, accelerating the pace of capability improvements.

Many AI projects fail to reach production because of reliability issues. The vision for continual learning is to deploy agents that are 'good enough,' then use RL to correct behavior based on real-world errors, much like training a human. This solves the final-mile reliability problem and could unlock a vast market.

The frontier of AI training is moving beyond humans ranking model outputs (RLHF). Now, high-skilled experts create detailed success criteria (like rubrics or unit tests), which an AI then uses to provide feedback to the main model at scale, a process called RLAIF.

Reinforcement Learning with Human Feedback (RLHF) is a popular term, but it's just one method. The core concept is reinforcing desired model behavior using various signals. These can include AI feedback (RLAIF), where another AI judges the output, or verifiable rewards, like checking if a model's answer to a math problem is correct.

The choice between simulation and real-world data depends on a task's core difficulty. For locomotion, complex reactive behavior is harder to capture than simple ground physics, favoring simulation. For manipulation, complex object physics are harder to simulate than simple grasping behaviors, favoring real-world data.

Companies like OpenAI and Anthropic are spending billions creating simulated enterprise apps (RL gyms) where human experts train AI models on complex tasks. This has created a new, rapidly growing "AI trainer" job category, but its ultimate purpose is to automate those same expert roles.

A niche, services-heavy market has emerged where startups build bespoke, high-fidelity simulation environments for large AI labs. These deals command at least seven-figure price tags and are critical for training next-generation agentic models, despite the customer base being only a few major labs.

As reinforcement learning (RL) techniques mature, the core challenge shifts from the algorithm to the problem definition. The competitive moat for AI companies will be their ability to create high-fidelity environments and benchmarks that accurately represent complex, real-world tasks, effectively teaching the AI what matters.