Conformal Arbitrage for LLM Objective Balancing

This academic paper proposes **Conformal Arbitrage (CA)**, a post-deployment framework for **balancing competing objectives** in language models, such as helpfulness versus harmlessness or cost versus accuracy. CA uses a **data-driven threshold** calibrated with conformal risk control to decide when to use a potentially faster or cheaper "Primary" model optimized for a primary goal and when to defer to a more cautious "Guardian" model or human expert aligned with a safety objective. This approach operates **without modifying model weights** and is compatible with existing systems. Empirical results demonstrate that CA creates an **efficient trade-off** between objectives, **outperforming random routing** while maintaining theoretical guarantees on risk.