Inverse Reinforcement Learning: Use Cases & Examples

Inverse reinforcement learning is an approach in machine learning where machines infer the goals or reward structures that guide an expert’s behavior by observing their actions rather than receiving explicit instructions.

Discover what inverse reinforcement learning is, how it works, and the top industry use cases with examples.

What is inverse reinforcement learning?

Inverse reinforcement learning, or IRL, is concerned with deducing the objective function or reward model that explains an expert’s behavior. When an agent observes an expert’s actions across various states within a Markov decision process (MDP), it seeks to uncover the underlying reward structures that would justify the expert’s optimal policy.

Unlike reinforcement learning, where the reward received is explicitly defined and used to optimize an agent’s behavior, IRL reverses the process; it starts with the observed behavior.

It works backward to identify the estimated reward function that would make that behavior rational in terms of future rewards and state values. This inversion of the standard paradigm is what distinguishes IRL as a unique research area in computer science.

Markov Decision Process (MDP)

An MDP provides a mathematical framework to model decision-making where outcomes are partly random and partly under the control of an agent. It consists of:

• States (S): All possible situations the agent could be in.
• Actions (A): Choices available to the agent at each state.
• Transition probabilities (P): The probability of reaching the next state given a current state and action.
• Reward function (R): A numerical value given for taking an action in a state.
• Policy (π): A strategy that specifies the action to take in each state.

The agent’s goal in a standard MDP is to find a policy that maximizes cumulative rewards over time.

Figure 1: The graph showing MDP processes.¹

Inverse Reinforcement Learning (IRL) and MDPs

In inverse reinforcement learning, we still have the MDP components, except that the reward function is unknown. Instead of specifying rewards and learning a policy, IRL:

• Observes expert behavior (e.g., human demonstrations).
• Infers the reward function (R) that the expert is likely optimizing.
• Uses this inferred reward function to recover or imitate expert-like policies.

Thus, in IRL, the MDP structure provides the environment model (states, actions, transitions), and IRL focuses on discovering what drives optimal behavior by solving for R-given expert trajectories.

How does inverse reinforcement learning work?

Inverse reinforcement learning typically involves four steps:

1. Observation

The agent collects data on the state action pair sequences of the expert, resulting in sampled trajectories that represent the expert’s policy π in practice.

2. Assumption

It is generally assumed that the expert follows an optimal policy for some unknown reward function and that their behavior is near-optimal concerning this function. However, in practice, this requires making strong assumptions about the environment’s dynamics and the expert’s competence.

3. Inference

The agent applies learning algorithms, such as maximum entropy IRL, to compute a learned reward function that best explains the observed trajectories. This often involves solving an optimization problem where the agent attempts to match the expected feature counts of its policy with those of the expert.

Depending on the formulation, this approach may utilize policy gradient methods, linear approximations, or dynamic programming techniques to handle continuous spaces or infinite state spaces.

4. Validation

Lastly, the inferred reward model is tested: the agent uses it in conjunction with reinforcement learning algorithms to determine if the resulting behavior replicates the expert’s performance in terms of state visitation frequency and expected feature counts.

Real-world applications of inverse reinforcement learning

Autonomous vehicles

IRL in autonomous vehicles includes learning driving policies by observing human drivers and deriving the implicit reward structures guiding their choices. This enables the design of agents that mimic safe and lawful driving patterns while adapting to system dynamics in complex traffic environments.

For example, DriveIRL is the first learning-based planner using inverse reinforcement learning (IRL) for self-driving in dense urban traffic.

DriveIRL generates diverse trajectory proposals, applies a safety filter, and scores trajectories with a model trained on over 500 hours of expert driving data from Las Vegas. This approach eliminates the need for hand-tuning and focuses learning on subtle driving behaviors.

DriveIRL demonstrated strong real-world performance on the Las Vegas Strip, handling complex scenarios such as cut-ins and heavy traffic.

Figure 2: The graph showing the architectural process of DriveIRL.²

Another example is Conditional Predictive Behavior Planning. This framework consists of three components:

• a behavior generation module that produces diverse trajectory proposals,
• a conditional motion prediction network that forecasts future trajectories of other agents based on each proposal,
• a scoring module that evaluates the candidate plans using maximum entropy IRL.

This setup enables the autonomous vehicle to make decisions that closely resemble human driving behavior.

Figure 3: Proposed behavior planning framework: The behavior module generates candidate actions. The motion prediction module forecasts the paths of other agents using the map, agent tracks, and AV plan. The scoring module rates each action based on joint trajectory features.³

Robotics

In robotics, IRL enables machines to learn tasks by observing human demonstrations. Applications range from simple tasks, such as dish placement and pouring, to complex maneuvers, including helicopter aerobatics. By inferring the reward structures that guide expert actions, robots can replicate the nuanced behaviors of humans.

For example, a recent paper proposes a gradient-based inverse reinforcement learning (IRL) framework that learns cost functions from visual human demonstrations, enabling robotic manipulation.

The approach combines:

• Unsupervised keypoint detection for compact visual representation.
• A pre-trained dynamics model for predicting action outcomes in the latent space.
• Temporal-difference visual model predictive control (TD-MPC) for optimizing actions.

Experiments using a Franka Emika Panda arm demonstrate the system’s ability to learn object manipulation tasks, showing stable learning and promising generalization.⁴

Gaming and AI strategy

In gaming, inverse reinforcement learning is employed to develop AI opponents that mimic human strategies, resulting in more engaging and challenging gameplay. By learning from player behavior, these AI systems can adapt to various play styles and tactics.

Healthcare

IRL has been applied in healthcare to infer reward functions where manual design is complex, supporting more effective decision-making.

Applications include:

• Modeling diabetes treatment strategies by learning from doctor-provided treatments.
• Analyzing clinical motion to assess surgical skills and patient therapy using scalable neural network-based approaches.
• Optimizing ventilator weaning decisions by extracting key indicators from ICU data.

IRL has also been used to identify critical decision factors and their roles in managing sepsis, enabling the development of more precise and patient-centered treatment strategies.⁵

Explore generative AI in healthcare and healthcare AI use cases for more.

Finance

Inverse reinforcement learning helps understand market dynamics and trends that traditional models may miss, and improves algorithmic trading by uncovering implicit reward functions of competitors to anticipate market moves.

In risk management, IRL identifies systemic risks by decoding participant motivations, while in portfolio management, it tailors asset allocation by inferring investors’ true preferences, like risk tolerance.

IRL also enhances behavioral finance by revealing the biases and emotional drivers behind financial decisions, and aids in financial crime detection by identifying anomalies in trading behaviors.

Benefits of using inverse reinforcement learning

Efficiency

Inverse reinforcement learning reduces reliance on expensive trial-and-error exploration by enabling agents to leverage prior knowledge captured in expert demonstrations.

Rather than needing to discover reward structures purely through interaction, the agent infers an estimated reward function that explains the observed behavior. This efficiency is particularly valuable in sequential decision-making scenarios where interactions with the environment may be costly, risky, or time-consuming.

Adaptability

A key strength of IRL lies in its ability to enable agents to generalize beyond the observed trajectories provided during training.

Since the agent learns the reward function that likely motivated the expert’s actions, it can compute an optimal policy that applies to novel situations not covered by the demonstration data. This contrasts with imitation learning, where the agent may mimic actions without understanding their purpose, limiting adaptability when faced with unfamiliar states in the state space.

Interpretability

IRL provides insights into the decision-making criteria of the expert by uncovering the underlying reward model. By making the reward function explicit, IRL helps practitioners examine the cost function and value function that shape the agent’s preferences and priorities.

This interpretability supports validation of desired behavior and can be valuable in domains where understanding the rationale behind decisions is critical, such as healthcare, autonomous driving, or artificial intelligence systems applied in high-stakes environments.

Challenges in implementing IRL

Sensitivity to the environment’s dynamics

Inverse reinforcement learning requires accurate knowledge or estimation of the environment’s dynamics, typically represented as the transition probability distribution in a Markov decision process. If the model of the system is incomplete or incorrect, the inferred reward function may not reflect the true incentives behind the observed behavior.

This issue is particularly problematic in complex or partially observable environments, where system dynamics are challenging to model precisely.

Strong assumptions about expert optimality

Many inverse reinforcement learning methods assume that the expert’s observed trajectories are generated by an optimal policy or at least a near-optimal one. However, in real-world applications, human experts often exhibit suboptimal or inconsistent behavior due to bounded rationality, fatigue, or incomplete information.

These strong assumptions can lead to learned reward functions that are not representative of the actual preferences underlying the desired behavior.

Scalability to high-dimensional spaces

When inverse reinforcement learning is applied to domains with high-dimensional state space and state-action pair representations (e.g., robotics, autonomous driving), the computational requirements and sample complexity grow rapidly.

While techniques such as neural networks, policy gradient, and deep learning can aid in function approximation, learning a reliable reward model in such settings still poses significant challenges, particularly when dealing with continuous spaces or infinite state spaces.

Choice of feature representation

The success of inverse reinforcement learning often hinges on selecting meaningful features to represent the state and action. Poorly chosen features can lead to an estimated reward function that fails to capture the key factors driving the expert’s decisions.

While some modern IRL methods attempt to learn features jointly with the reward function (e.g., using deep learning architectures), many still rely on hand-engineered feature weights and linear approximation, which may limit performance in complex tasks.

External Links

• 1. ScienceDirect.
• 2. https://arxiv.org/pdf/2206.03004
• 3. https://arxiv.org/pdf/2212.08787
• 4. Robotic Arm Manipulation with Inverse Reinforcement Learning & TD-MPC.
• 5. https://www.scitepress.org/Papers/2021/107292/107292.pdf