SIPDO: Closed-Loop Prompt Optimization via Synthetic Data Feedback

Abstract: Prompt quality plays a critical role in the performance of LLMs, motivating a growing body of work on prompt optimization. Most existing methods optimize prompts over a fixed dataset, assuming static input distributions and offering limited support for iterative improvement. We introduce SIPDO (Self-Improving Prompts through Data-Augmented Optimization), a closed-loop framework for prompt learning that integrates synthetic data generation into the optimization process. SIPDO couples a synthetic data generator with a prompt optimizer, where the generator produces new examples that reveal current prompt weaknesses and the optimizer incrementally refines the prompt in response. This feedback-driven loop enables systematic improvement of prompt performance without assuming access to external supervision or new tasks. Experiments across question answering and reasoning benchmarks show that SIPDO outperforms standard prompt tuning methods, highlighting the value of integrating data synthesis into prompt learning workflows.