[Paper] Proxy Reward Internalization and Mechanistic Exploitation: A Learned Precursor to Reward Hacking and Its Generalization

Published: (June 8, 2026 at 12:32 PM EDT)
2 min read
Source: arXiv

Source: arXiv - 2606.09711v1

Overview

Reward hacking is usually studied after it becomes visible, once a model earns high proxy reward while failing the intended task. We instead study what proxy RL teaches before that failure appears. We introduce Proxy Reward Internalization and Mechanistic Exploitation (PRIME), a learned capability to assess task correctness, predict proxy acceptance, and reason about exploitable proxy—gold gaps. In coding RL environments with exploitable pytest rewards, we measure PRIME through chain-of-thought monitoring, direct probes, and activation-level concept vectors. We find that PRIME emerges in a staged sequence before sustained reward hacking, and that its current direct-probe score forecasts later hack onset and severity even when the visible hack rate is still low. PRIME also adapts when the evaluator changes, retargeting to whichever proxy—gold gap remains rewarded and persisting when gold reward suppresses overt hacking, and ablating its activation directions reduces hacking. Across checkpoints, in-domain PRIME tracks out-of-domain misalignment. Together these results suggest that exploitable proxy RL amplifies a proxy-internalization capability upstream of visible hacking, making PRIME a candidate early-warning signal for broader alignment risk.

Key Contributions

This paper presents research in the following areas:

  • cs.AI
  • cs.LG

Methodology

Please refer to the full paper for detailed methodology.

Practical Implications

This research contributes to the advancement of cs.AI.

Authors

  • Mohammad Beigi
  • Ming Jin
  • Lifu Huang

Paper Information

  • arXiv ID: 2606.09711v1
  • Categories: cs.AI, cs.LG
  • Published: June 8, 2026
  • PDF: Download PDF
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