Small Language Models: Enterprise Solution for Privacy and Trust Concerns.

Akash Bhate
4 min readMar 26, 2024

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As artificial intelligence continues to evolve, Small Language Models (SLMs) are gaining popularity due to their numerous benefits, including potential improvements in privacy and efficiency. Known for their simpler structure and smaller size, these models make product maintenance and integration into software and web apps significantly more manageable compared to their larger counterparts.

SLMs strike a balance between performance and resource usage, making them an excellent choice for practical applications in everyday tech like chatbots, voice assistants, and search engines. They handle tasks effectively without overwhelming resources, thus improving overall efficiency.

From an enterprise perspective, SLMs can address some of the security and privacy concerns associated with larger models.

Small Language Models (SLMs) + Retrieval-Augmented Generation (RAG) can help address security and privacy concerns in enterprise settings in several ways. Firstly, SLM RAG training is narrow scope, scope limited to your enterprise data — PDF, word docs, website, emails, ERP data, etc. Secondly, due to their smaller size, SLM requires less compute to train & operate. Lastly, SLM and RAG will not memorize and inadvertently disclose confidential data during interactions, enhancing data privacy. SLMs can be effectively fine-tuned on specific, controlled datasets, allowing for a more secure and privacy-focused model customization.

SLM RAG Business Architecture

Customizing SLMs requires data science expertise. Techniques such as fine-tuning and Retrieval-Augmented Generation (RAG) enhance model performance. These methods make SLMs more relevant, accurate, and aligned with enterprise objectives.

RAGs with SLMs provide source links to answer questions, enabling (internal stakeholders, and users) to verify the validity of the information provided. This transparency fosters trust and reliability, enhancing user experience and confidence in the AI system’s capabilities. RAG models excel in providing responses that are highly relevant to the context of the conversation or query. By retrieving information from vast datasets, RAG can generate responses tailored to the user’s specific needs and interests.

Despite the many advantages of SLMs, it’s important to note their limitations. They may not offer the same level of comprehensive knowledge and versatility as larger models due to their smaller size and simpler structure. For tasks requiring a wide range of topics or complex inquiries, larger models may still be the preferred choice.

Several Small Language Models have made a mark in the field, including NVIDIA’s Chat with RTX and Meta’s Llama models. For open-source options, Hugging Face’s Transformers library is a popular resource. However, understanding the legal and ethical implications of using these models, such as Meta’s restrictions on Llama 2, is crucial.

In conclusion, SLMs offer a viable alternative to larger models by balancing efficient resource usage and excellent performance. They provide a cost-effective solution for developers and businesses with limited resources, making them a promising option for small-scale operations and start-ups.

Small Language Model / Landscape Q1'24:

DistilBERT: (Hugging face, open source) DistilBERT represents a more compact, agile, and lightweight iteration of BERT, a pioneering model in natural language processing (NLP). — https://huggingface.co/docs/transformers/model_doc/distilbert

Llama 2: Llama 2 is a Small Language Model developed by Meta. It is designed to handle a wide range of Natural Language Processing tasks efficiently. Llama 2 exhibits powerful performance in various domains such as language understanding, information retrieval, and conversation. This model is also available as open-source which encourages developers to experiment and innovate upon it. However, Meta’s license forbids the use of Llama 2 to train other language models and requires a special license if the model is used in an app or service with more than 700 million monthly users.https://llama.meta.com/llama2/

Phi 2: Microsoft’s Phi 2 is a transformer-based Small Language Model (SLM) engineered for efficiency and adaptability in both cloud and edge deployments. According to Microsoft, Phi 2 exhibits state-of-the-art performance in domains such as mathematical reasoning, common sense, language understanding, and logical reasoning. — https://huggingface.co/docs/transformers/main/model_doc/phi

NVDIA ChatRTX: ChatRTX is a demo app that lets you personalize a GPT large language model (LLM) connected to your own content — docs, notes, or other data. Leveraging retrieval-augmented generation (RAG), TensorRT-LLM, and RTX acceleration, you can query a custom chatbot to quickly get contextually relevant answers. And because it all runs locally on your Windows RTX PC or workstation, you’ll get fast and secure results.

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Akash Bhate

Senior Product ^ Engineering Leader @ Amazon ex @GE @Capgemini | Startup advisor - SalesTech AI, HealthTech AI