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Artificial Intelligence - Small Language Models are the Future of Agentic AI

Author
ernestasposkus
Published
Fri 05 Sep 2025
Episode Link
https://www.paperledge.com/e/artificial-intelligence-small-language-models-are-the-future-of-agentic-ai/

Hey PaperLedge crew, Ernis here, ready to dive into another fascinating piece of research! Today, we're talking about something that's becoming super relevant as AI gets more and more integrated into our daily lives: how we actually use AI. Specifically, we're looking at language models – those clever programs that can generate text, translate languages, and even hold conversations with us.

Now, you've probably heard a lot about Large Language Models, or LLMs. Think of them as the all-stars of the AI world – incredibly powerful and capable of doing a ton of different things. They're like that Swiss Army knife you have; it can do almost anything, but it's also kinda bulky and expensive. But this paper asks: do we always need that Swiss Army knife? What if we just need a simple screwdriver?

This paper argues that for many of the specific tasks that AI is being used for now – like, say, automating customer service responses or generating product descriptions – we don't actually need these huge, expensive LLMs. Instead, Smaller Language Models, or SLMs, are often perfectly good, and, in many cases, even better.

Think of it this way: imagine you need to write a simple email. You could use a super-fancy writing program with all the bells and whistles, but a basic text editor would probably do the job just fine, right? That's the idea here. These researchers are suggesting that for many repetitive, specialized tasks within AI "agentic" systems, SLMs are not only sufficient but actually the smarter choice.

Why? Well, a few reasons:



  • They're powerful enough: SLMs are already surprisingly capable.

  • They're a better fit for the job: Agentic systems often involve doing the same simple task over and over.

  • They're cheaper: Deploying and running LLMs is expensive. SLMs are much more economical.

The researchers go on to suggest that even in situations where you do need more general conversational abilities, you can use a heterogeneous agentic system. That's just a fancy way of saying you can combine different AI models, using an SLM for the simple tasks and an LLM only when you need that extra conversational oomph.

This paper is essentially a call to action. The authors believe that switching from LLMs to SLMs, even partially, could have a huge impact on the AI industry, making it more efficient and affordable. They're even proposing a general algorithm for converting LLM-based agents into SLM-based agents. They want to start a conversation about using AI resources effectively and lowering the cost of AI.

So, why does this matter? Well:



  • For businesses: It could mean significant cost savings in AI deployment.

  • For developers: It opens up new opportunities to create specialized, efficient AI tools.

  • For everyone: It could lead to more accessible and affordable AI solutions in all aspects of our lives.

This research raises some really interesting questions, like:



  • If SLMs are so great for specific tasks, why are LLMs still getting all the hype? Is it just because they're flashier?

  • What are the biggest barriers to adopting SLMs in agentic systems, and how can we overcome them?

  • Could a shift towards SLMs actually make AI more accessible and democratized, since they're cheaper to run?

I'm really curious to hear what you all think about this. Could SLMs be the unsung heroes of the AI revolution? Let me know in the comments!






Credit to Paper authors: Peter Belcak, Greg Heinrich, Shizhe Diao, Yonggan Fu, Xin Dong, Saurav Muralidharan, Yingyan Celine Lin, Pavlo Molchanov

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