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Smaller, Smarter, Safer: The Enterprise Shift to Domain-Specific SLMs

  • Writer: Jayant Upadhyaya
    Jayant Upadhyaya
  • 2 days ago
  • 3 min read
Diagram of small language models with icons of a brain, microchip, and texts "NLP", "Aa". Blue background, tech theme.

Generative AI, which is the technology used by tools like ChatGPT, is quickly evolving. 


From large language models (LLMs) that use massive amounts of generalised data to accommodate the broadest range of outputs from any user, companies' needs are becoming more specific. 


Specialized Language Models (SMLs) differ from LLMs because they are trained on domain-specific data, like medical, legal, or technical texts, to understand, generate, and analyze language with greater accuracy in that particular field.


Enterprises are falling over each other to invest in SLMs because of their cost-efficiency, faster responses, better data privacy, and domain-specific performance.


This article explains why enterprises are adopting SLMs, security and compliance advantages, cost and efficiency benefits, VPNs and AI connectivity, and SLM challenges. 


Why Enterprises Are Adopting SLMs

There are many reasons for the enterprise adoption of SLMs. It aligns in a more targeted way with industry needs, allows faster training, and, because it uses less data, it requires lower infrastructure costs. 


The industries that it will benefit most are healthcare, because it will facilitate faster, targeted decision support, and finance, because it can train on relevant finance data to offer up-to-date risk assessment for loans. 


The greatest benefit of SLMs is the lower operational overhead because they use fewer resources, making them attractive to enterprises that are always looking to ensure the lowest operational costs and highest profits. Let’s look in more detail at other benefits such as security and compliance, and cost efficiency.


Security and Compliance Advantages

The benefits of SLMs don’t end with the list above. There are also several benefits to an organization’s secure management of data alongside compliance benefits. 


SLMs manage a lot more securely than LLMs, because they host the tool on smaller, private servers instead of shared servers. It’s also easier to ensure that sensitive data is not shared with others, which can happen on LLMs.


The risk of data leaks is also dramatically reduced because, in essence, it’s contained within much smaller and more contained datasets. 


All these benefits lend themselves naturally to enterprise-grade cybersecurity protocols and future regulatory compliance that will include general AI tools. 


Cost and Efficiency Benefits

Because SLMs use less data, they also use less energy to carry out their processes as they use local private servers instead of the cloud used by LLMs, which means they are cheaper to run. 


Another attractive aspect of SLMs is that they only require a lightweight architecture to run because they don’t need to process such broad sets of data. This plus means faster deployment and onboarding, so teams can get up and running faster. 


VPNs and Secure AI Connectivity

VPNs and generative AI tools are a perfect combination because the VPN (virtual private network) can safeguard AI data pipelines and protect remote enterprise teams who don’t use local, private servers. 


The right free VPN is great for the early stages of rolling out a new SLM tool because it can secure data transmission and protect proprietary training datasets. It also enables remote collaboration and ensures compliance with regional data privacy regulations.


It’s also worth considering a paid VPN because it will be more secure at the later stages of SLM use as it will protect proprietary AI workflows more effectively. 


Challenges in Adopting SLMs

Challenges to Adopting ESM, teal background. Sections: Resistance to Change, Siloed Processes, Lack of Sponsorship. Each lists a solution.

As always, the benefits come with a caveat: You first have to overcome the challenges. Generative AI is in its infancy and has many limitations that will become clear over time. For now, let’s focus on the current challenges you’ll face if you are looking to adopt an SLM in your organization. 


Talent Gaps

Enterprises struggle to find experts skilled in both machine learning and specific domains like law, finance, or medicine.


Integration Hurdles

SLMs often require custom connectors or APIs to work smoothly with legacy software, slowing deployment and increasing IT workload.


Balancing Smaller Model Size with Advanced Features

Smaller models save resources but can lack nuanced understanding or multitasking abilities, requiring careful tuning and architecture design.

Be aware of these challenges before committing to an SLM adoption. 


Conclusion : The Enterprise Shift to Domain-Specific SLMs

SLMs are poised to take over where LLMs are overdelivering and using too much energy, as well as managing data more securely over private, local services instead of the cloud


SLMs are more innovative, more cost-effective, and secure for enterprises embracing AI solutions. 


However, it’s essential to be mindful of the challenges you need to overcome for a successful adoption. There are talent gaps for building tools with these models, integration hurdles, and balancing smaller model size with advanced features that enterprises require. 


Once you overcome these hurdles, you will enjoy a cheaper, more accurate language model that processes data more efficiently to help you excel in your sector.


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