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Small language models:
powering enterprise AI

Small, specialized, and secure language models are the optimal solution for the majority of business use cases across industries like healthcare, financial services, legal, education, and more.

Reach out today to learn how to get started.

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Small
Smart

Specialized
Scalable

Secure
Streamlined

Trusted by Industry-Leading Companies

What are small language models?

Here at Arcee AI, our definition of a small language model (SLM) is anything with a parameter count of 72B or less.

Despite their smaller parameter count, SLMs can outperform large language models (LLMs) when trained on domain-specific tasks. The reduced size makes SLMs much more cost-effective, resource efficient and delivers lower latency than their LLM counterparts.

Learn more about SLMs
50-75%

Cost savings

72B or less, faster time to value

Lower costs, greater accuracy

Business-centric, human-like language

60%

Better benchmark
compared to LLM’s

Small language models vs Large language models

Characteristics

Small language models

Large language models

Parameter Count

≤ 72B

≥ 72B

Training Data

Tailored to business-specific data for focused, relevant performance

Trained on broad, general-purpose data for diverse applications

Output Quality

More relevant, accurate outputs

Prone to hallucination and catastrophic forgetting

Business Usecase

Built for specific use cases

Struggles with specific use cases

Scalability

Flexible and efficient for business

Challenging and costly to scale for large deployment

Cost

50%-75% cheaper than LLMs

Higher costs due to size & resources requirement

Data Security

Prioritizes security and compliance

Requires complex configurations

Characteristics

Parameter Count

Training Data

Output Quality

Business Usecase

Scalability

Cost

Data Security

Small language models

≤ 72B

Tailored to business-specific data for focused, relevant performance

More relevant, accurate outputs

Built for specific use cases

Flexible and efficient for business

50%-75% cheaper than LLMs

Prioritizes security and compliance

Large language models

≤ 72B

Trained on broad, general-purpose data for diverse applications

Prone to hallucination and catastrophic forgetting

Struggles with specific use cases

Challenging and costly to scale for large deployment

Higher costs due to size & resources requirement

Requires complex configurations

Contact us to learn about SLMs

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The advantages of small language models

Boosted accuracy & performance

  • 60% better benchmarks compared to LLMs

  • Minimal hallucinations

  • Low latency, fast response time

  • Relevant, accurate outputs

Flexibility and scalability

  • Fully customizable with your data

  • Regularly updated and re-trained to meet your needs

  • Cost-efficient, achieving up to 50-75% savings compared to LLMs

  • Fast time-to-value with high ROI

Ownership and security

  • Free from third-party API dependencies

  • Run securely within your chosen environment

  • Maintain full transparency and control over your data and model

  • Meet your compliance needs

Small language models:
Driving business success with efficiency

Activeloop  specializes in helping enterprises organize complex unstructured data and leverage AI for knowledge retrieval, particularly serving clients in heavily-regulated industries.
Activeloop collaborated with Arcee AI to develop a small language model (SLM) solution for U.S. Patent data, making the vast wealth of information contained in U.S. patents more accessible and navigable for broader audiences.

Arcee AI’s solution for Activeloop

Addressed data privacy and compliance concerns

50% fewer hallucinations and 2.5x faster response times vs. OpenAI Ada+Pinecone setup

Accelerated deployment from data to production, unlocking business value faster

Discover Activeloop’s success story

Experience the efficiency of SLMs

Intelligent routing to SLMs

Explore Arcee Conductor

Arcee Conductor is our intelligent model routing platform. It evaluates your prompt,  then sends it to the optimal SLM or LLM–based on domain or task complexity.
The result? Your simpler or routine prompts no longer go to premium models, which slashes your AI spend by 50-200x per prompt.  

Small language models: AI tailored for your tasks

Transform how your team operates in an AI-powered world.
Arcee AI empowers you to tackle complex tasks with purpose-built SLMs.

Book a Demo

Frequently
Asked Questions

What is a small language model?

A ‘Small’ Language Model is anything with a parameter count of 72B or less.

Despite their smaller parameter count, SLMs can outperform LLMs when trained on domain-specific tasks. The reduced size makes SLMs much more cost-effective and resource-efficient, and leads to lower latency compared to LLMs.

What is the difference between an SLM and an LLM?

The main differences are their size, computational requirements, training time, quality of output, and application scope. SLMs are smaller, require less computational power, train faster, and are often more specialized and better for business use cases. LLMs are larger, more resource-intensive, and take longer to train but are good at handling a broader range of tasks with general purpose.

What are the benefits of small language models?

Key benefits include cost efficiency, security, enhanced task-specific performance, and real differentiation for enterprise AI solutions—ideal for task-specific requirements that streamline operations and drive productivity.

What are the some popular small language models?

Open-Source SLMs: Arcee-SuperNova, Arcee-SuperNova-Medius, Arcee-SuperNove-Lite, Qwen 2.5 0.5B Instruct, Llama 3.2 1B Instruct, Phi-3.5 Mini Instruct, Gemma 2 9B IT

Closed-Source SLMs: GPT4 omni mini, o1-mini, Gemini 1.5 Flash, Claude 3.5 Haik