Home · Glossary · Small Language Model (SLM)
Enterprise AI glossary · Generative AI & LLMs

Small Language Model (SLM)

A purpose-built or distilled model in the 1–8 billion parameter range, optimised for a specific domain or task, typically served on commodity GPUs.

Definition

What Small Language Model (SLM) means in practice

A Small Language Model is a 1–8B parameter LLM that has either been pretrained on a narrow domain (clinical notes, financial filings, code) or distilled from a larger model. SLMs trade a small amount of general capability for a large reduction in inference cost and a meaningful improvement in domain-specific accuracy. In sovereign enterprise deployments SLMs are the workhorse for high-volume routing, classification, and document-extraction workloads, with the larger 70B-class model reserved for the long-tail complex queries. A well-tuned 8B model on a single A100 routinely outperforms a 70B model on the customer's narrow benchmark while costing 10× less to serve.

Go deeper
Generative AI for enterprise →
Free download · 12-minute read

The Sovereign AI Playbook.

Enterprise generative AI that runs on your servers.

  • 01Definition. The four non-negotiable properties of a sovereign deployment — and the three patterns that look sovereign but aren't.
  • 02Why now. Three forces that converged in 2026: regulator pressure, the open-weights capability gap closing, and unit economics flipping.
  • 03Reference architecture. The five-layer stack we deploy: applications → agent runtime → sovereign LLM → RAG + KB → data stores. With model and tooling choices for each.
  • 04The regulators. SAMA · RBI · UK ICO · EU AI Act · DPDP · HIPAA — what each requires and how it maps to architecture.
Get the playbook
Free PDF, in your inbox in 30 seconds.
We'll send the PDF, and may follow up once or twice with related material. One click unsubscribes.

All 62 terms, in plain language

Sovereign AI, RAG, agentic AI, IDP, MLOps and the regulations that shape enterprise AI.

Browse the glossary →Talk to an engineer →