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What is a small language model?
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What is a small language model?

By Jacob Andra / Published November 26, 2024 
Last Updated: November 26, 2024

Executive summary:

Small language models (SLMs) are lightweight language models that specialize in specific tasks while using minimal computing resources.

Benefits of SLMs include the following:

  • Efficient operation on low-power devices (e.g. smartphones and IoT devices)
  • Optimized performance in low-resource environments
  • Task-specific focus for healthcare diagnostics, customer support, sentiment analysis, signal filtering, or hundreds of other applications
  • Faster processing for real-time applications
  • Lower operational costs due to reduced computational demands

SLMs are integral to our cognitive hive AI (CHAI) architecture, where they collaborate with other specialized models to tackle specific tasks with precision. This modular approach boosts efficiency and accuracy across diverse applications, from financial analysis to legal document processing. Contact us to explore how SLMs within CHAI can optimize your business processes.

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Small language models are AI systems with fewer parameters and lower computational demands than large language models. They offer faster processing times, lower costs, and enhanced accuracy within their specialized domains.

Main takeaways
SLMs provide efficient, targeted solutions for specific tasks.
Run on low-power devices for greater accessibility and portability.
Cost-effective and resource-efficient for budget-conscious deployments.
Good for real-time applications and low-latency environments.
Can be part of a cognitive hive AI (CHAI) ensemble.

Definition of small language models

Small language models (SLMs) represent a specialized subset within the broader field of generative artificial intelligence, specifically for natural language processing (NLP). Characterized by their compact architecture and reduced computational power, SLMs are neural networks containing millions to hundreds of millions of parameters, a fraction of the size of their large language model (LLM) counterparts.

They are a practical choice for environments where efficiency and speed are prioritized over sheer computational power.

According to recent research, task-specific SLMs tend to outperform general-purpose multilingual models, especially in low-resource environments.

How do small language models work?

Small language models operate by processing text data through neural networks, using a smaller number of parameters to perform specific language-related tasks. These models rely on patterns learned from training data to understand and generate human language.

Despite their compact size, they still follow a structured process to deliver efficient and focused results. Here's an overview of how they work:

  • Tokenization: The model breaks down input text into smaller units called tokens, which can be words, subwords, or characters.
  • Embedding: Tokens are converted into numerical vectors that the model can process. These vectors represent the meaning and context of the tokens within the text.
  • Neural network processing: The model’s neural network processes the embedded tokens to identify patterns and relationships between them. It uses this understanding to complete the task at hand, such as predicting the next word or classifying the sentiment of a sentence.
  • Output generation: Based on the patterns identified, the model generates an output, whether it’s text completion, classification, or another specific task.
  • Optimization: The model continuously adjusts its parameters during training to improve accuracy and efficiency in performing language tasks.

Applications of SLMs

The following represent a small sampling of the use case types in which an SLM can provide value:

  • Healthcare diagnostics (analyzing patient symptoms and medical histories to suggest potential conditions)
  • Customer support routing (directing inquiries to appropriate departments based on content and urgency)
  • Sentiment analysis (evaluating customer feedback and social media mentions for brand perception)
  • Contract analysis (identifying standard clauses and potential issues in legal documents)
  • Manufacturing quality control (processing sensor data to detect production anomalies)
  • Financial compliance (scanning transactions and reports for regulatory violations)
  • Sales lead qualification (scoring prospect interactions to prioritize sales efforts)
  • Inventory management (optimizing stock levels based on historical and current data)
  • Equipment maintenance prediction (analyzing performance metrics to schedule preventive maintenance)
  • Product categorization (automatically classifying items in e-commerce catalogs)
  • Resume screening (matching candidate qualifications to job requirements)
  • Code documentation (generating clear explanations of software functionality)
  • Data entry validation (verifying accuracy and completeness of form submissions)
  • Medical record summarization (condensing patient histories into actionable briefings)
  • Drug interaction checking (flagging potential conflicts between medications)
  • Lab result interpretation (translating technical findings into clear summaries)
  • Radiology report analysis (extracting key findings from imaging reports)
  • Medical billing code verification (ensuring accurate procedure coding)
  • Appointment scheduling assistance (managing calendar conflicts and priorities)
  • Transaction fraud detection (identifying suspicious financial activity patterns)
  • Credit risk assessment (evaluating loan application factors)
  • Invoice processing (extracting and validating key information from bills)
  • Trading pattern analysis (identifying potential market manipulation)
  • Insurance claim categorization (routing claims to appropriate processors)
  • Mortgage application screening (checking basic eligibility criteria)
  • Production line monitoring (tracking manufacturing metrics in real-time)
  • Safety incident classification (categorizing workplace safety reports)
  • Supply chain documentation (processing shipping and receiving records)
  • Assembly instruction generation (creating clear step-by-step guides)
  • Ticket routing (directing support requests to appropriate teams)
  • Product return processing (evaluating return requests against policies)
  • Warranty claim validation (verifying eligibility for warranty service)
  • Service request prioritization (ranking support tickets by urgency)
  • Job description standardization (ensuring consistent job posting formats)
  • Employee feedback analysis (identifying patterns in worker satisfaction data)
  • Performance review processing (extracting key metrics from evaluations)
  • Training needs assessment (identifying skill gaps from performance data)
  • Onboarding document generation (creating personalized welcome materials)
  • Benefits inquiry handling (responding to common benefits questions)
  • Regulatory compliance checking (monitoring adherence to industry rules)
  • Document version control (tracking changes in legal documents)
  • Legal citation verification (checking accuracy of legal references)
  • Policy violation detection (identifying non-compliant behaviors)
  • Standard agreement generation (creating basic legal documents)
  • System log analysis (identifying potential IT issues from server logs)
  • Security alert triage (prioritizing cybersecurity threats)
  • API documentation generation (creating technical reference materials)
  • Test case generation (creating software testing scenarios)
  • Configuration validation (checking system settings for errors)
  • Email response generation (creating standardized reply templates)
  • Campaign performance analysis (measuring marketing effectiveness)
  • Market trend monitoring (tracking industry-specific patterns)
  • Review authenticity checking (identifying fake product reviews)
  • Price optimization (adjusting prices based on market conditions)
  • Search query processing (improving e-commerce search accuracy)
  • Return reason analysis (identifying patterns in product returns)
  • Patent similarity checking (identifying potential IP conflicts)
  • Research paper categorization (organizing academic literature)
  • Experimental data validation (checking research data consistency)
  • Grant proposal screening (evaluating basic eligibility criteria)
  • Resource allocation monitoring (tracking resource usage patterns)
  • Process deviation detection (identifying workflow anomalies)
  • Audit trail analysis (reviewing system access logs)
  • Performance metric tracking (monitoring KPI achievements)

Small language model examples

The following three examples illustrate how SLMs are already making inroads to use cases previously dominated by large language models.

Domain-specific language models in healthcare

SLMs in healthcare handle medical terminology, procedures, and patient care data. These models are trained on specialized datasets, including medical journals and anonymized patient records, ensuring they can interpret and generate highly accurate information in a healthcare context.

Their applications include summarizing patient records, assisting in diagnostic processes, and staying up-to-date with medical research by summarizing new findings. With a focus on precise medical language and concepts, these models improve decision-making and patient outcomes in clinical settings.

Micro language models for customer support

Micro language models (MLMs) are smaller models fine-tuned for customer service tasks. These models are trained on datasets that include customer interactions, FAQs, and product manuals.

By understanding common customer inquiries and company-specific policies, MLMs can provide fast, accurate responses, assist with troubleshooting, and escalate complex issues to human agents when necessary.

For example, an MLM deployed by an IT company could autonomously resolve frequent technical issues. It can allow customer support teams to focus on more complicated requests to improve overall efficiency and customer satisfaction.

Phi-3 mini language model

An outstanding example of a compact yet powerful SLM is the phi-3-mini model. With 3.8 billion parameters and trained on 3.3 trillion tokens, this model performs on par with larger models such as GPT-3.5 and Mixtral 8x7B.

Despite its small size, phi-3-mini excels in benchmarks such as MMLU, scoring 69%, and MT-bench with a score of 8.38. Its compact nature allows deployment on devices (e.g. smartphones) and is great for applications requiring portability and speed. The model’s dataset, composed of filtered web and synthetic data, ensures high adaptability, safety, and robustness in generating accurate and context-aware responses.

Small language models vs large language models

LLMs impress with their broad capabilities, but they're often overkill—or even ineffective—for focused business tasks. SLMs operate faster, cost less, and excel at the specific tasks for which they’ve been trained.

The table below breaks down the differences to help you see which one fits your needs.

AspectSLMsLLMs

Size and complexity

Fewer parameters; compact architecture

Billions (even hundreds of billions) of parameters; complex architecture

Performance

Efficient at handling specific, narrow tasks

Handle broad and complex tasks, with deeper contextual understanding

Computational requirements

Lower compute needed

High computational demands; require powerful GPUs or cloud infrastructure

Use cases

Domain-specific applications

General-purpose applications

Cost and resource efficiency

Low cost; optimized for efficiency in resource-constrained environments

High operational cost because of infrastructure and computing needs

Deployment

Can be deployed on low-power devices (e.g., smartphones, embedded systems)

Primarily deployed on high-performance servers and cloud environments

The role of SLMs in CHAI

Minimalist art deco aesthetic featuring a glowing beehive at the center with rays extending outward. Small digital nodes represent a small language model supporting communication in CHAI. Futuristic and geometric design.

In our cognitive hive AI (CHAI) modular architecture, SLMs can be highly focused components that excel in specific tasks. Instead of relying on a single large model, our CHAI leverages multiple, specialized models working together. This collaborative approach leads to more effective outputs, as models can cross-validate each other’s results and ensure higher accuracy.

The modular power of CHAI

CHAI doesn’t limit itself to SLMs. Its architecture can incorporate LLMs, large quantitative models, knowledge graphs, and other types of machine learning, IoT, and neural networks. These different components work together like building blocks to create a customized solution for any problem. SLMs play a crucial role in this ecosystem as agile, specialized components that keep the system efficient and adaptable.

Small language models FAQ

Bert is not a small language model. While it is more compact than some of the massive models available today, BERT still contains hundreds of millions of parameters, so is closer to the range of large language models.

Popular examples of small language models include DistilBERT, TinyBERT, and ALBERT. These models compress knowledge from larger models into more compact architectures. MobileBERT and SqueezeNLP also fall into this category and offer efficient language processing for mobile and edge devices with limited resources.

Retrieval-augmented generation (RAG) combines knowledge management and retrieval techniques with language generation to produce more informed responses. An SLM, on the other hand, focuses on performing specific language tasks efficiently with fewer parameters. RAG relies on external data sources, while SLMs work within a more compact framework.

Small language systems (SLS) and SLM serve different purposes. SLMs focus on handling specific language tasks with fewer parameters, while SLSs refer to systems that integrate smaller models and processing approaches. The better choice depends on whether the need is for compact individual models or a system combining multiple smaller tools.

Resources

  • Abdin, M., Anejy, J., & Awadalla, H. (2024, April 22). [2404.14219] Phi-3 Technical Report: A Highly Capable Language Model Locally on Your Phone. arXiv. https://arxiv.org/abs/2404.14219
  • Lepagnol, P., Gerald, T., & Ghannay, S. (2024, May 20). Small Language Models Are Good Too: An Empirical Study of Zero-Shot Classification. ACL Anthology. https://aclanthology.org/2024.lrec-main.1299.pdf

About the author

Jacob Andra is the founder of Talbot West and a co-founder of The Institute for Cognitive Hive AI, a not-for-profit organization dedicated to promoting Cognitive Hive AI (CHAI) as a superior architecture to monolithic AI models. Jacob serves on the board of 47G, a Utah-based public-private aerospace and defense consortium. He spends his time pushing the limits of what AI can accomplish, especially in high-stakes use cases. Jacob also writes and publishes extensively on the intersection of AI, enterprise, economics, and policy, covering topics such as explainability, responsible AI, gray zone warfare, and more.
Jacob Andra

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