Are Small Language Models the Future of Agentic AI?
The AI world has placed its bets on large language models (LLMs) as the default brain for AI agents. This bet has become so entrenched that entire infrastructures, venture bets, and enterprise rollouts have been built around this paradigm. But what if this default isn’t the only option? During a recent weekend reading session, I stumbled upon a paper from NVIDIA Research and the Georgia Institute of Technology: “ Small Language Models are the Future of Agentic AI .” The paper argues that for many tasks, the future is not LLM-only, and after interrogating its claims, I believe it’s not SLM-only either. The future is hybrid. At its core, the paper suggests that small language models (SLMs) are powerful enough to run on consumer hardware with fewer than 10B parameters. It makes a compelling case based on three key points: SLMs are already powerful enough for most agentic tasks. They hallucinate less and are easier to constrain, making them operationally more reliable. They are relati...