SLM

Stands for "Small Language Model."

An SLM is an AI system designed for natural language tasks, such as understanding, generating, and responding to text. It is similar to an LLM (Large Language Model), but has far fewer parameters.

While LLMs may feature hundreds of billions or even trillions of parameters, SLMs typically have anywhere from a few million to a few billion parameters. They require less computational power memory and infrastructure, making them ideal for on-device processing and offline use.

Both SLMs and LLMs often use transformer-based neural network architectures for natural language processing, but SLMs are smaller and more focused in scope. The table compares several features:

Feature SLM LLM
Parameters Millions to a few billion Hundreds of billions or trillions
Hardware Requirements Low computational power; runs on consumer or edge devices Requires powerful GPUs; often cloud-hosted
Training Data Narrow or task-specific datasets Vast, diverse, general-purpose datasets
Cost and Efficiency Economical to train and deploy Expensive and resource-intensive
Speed & Latency Fast responses; low latency Slower due to model size
Accuracy & Reasoning Adequate for routine tasks; less capable with complex or nuanced queries High accuracy; advanced reasoning
Adaptability Easily fine-tuned for specific domains Strong generalization across many domains

Real-World Applications

SLMs excel in scenarios where efficiency, privacy, and cost are more important than broad generalization and deep reasoning. Common applications include:

  • On-device AI & Edge Computing -SLMs run on smartphones, IoT devices, and edge servers, powering services like voice assistants, smart home automation, predictive text, and offline translation.
  • Customer Support & Chatbots - SLMs can provide fast, reliable responses for routine queries, powering FAQ bots and automated help desks.
  • Enterprise Automation - SLMs can summarize emails and reports, generate short-form content, and search proprietary knowledge bases.
  • Cybersecurity & Risk Management - SLMs can perform regular security tests and compliance checks across multiple systems.

While LLMs are the foundation of cloud-based AI services, like ChatGPT, Gemini, and Perplexity, SLMs are becoming increasingly important. Since modern PCs are powerful enough to process the models locally, SLMs provide a secure and efficient way to use AI without sending data over the Internet.

Updated August 22, 2025 by Per C.

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