11 Apr 2025
by Usman Ikhlaq

Event round-up: AI Leader's Series: Small Language Models Explained

Check out the summary of the second event in our new AI Leaders' Series!

As part of our ongoing AI Leader’s Series, techUK hosted a panel of leading AI experts to explore the growing relevance of Small Language Models (SLMs). While Large Language Models (LLMs) continue to dominate the public AI conversation, SLMs are quickly emerging as a practical, accessible, and cost-efficient alternative that is enabling more organisations to deploy artificial intelligence at scale.

This virtual session brought together speakers from across the AI ecosystem to share insights on the current state of SLM adoption, where these models offer the greatest impact, and how organisations can leverage them effectively while managing associated risks.

Key topics included:

  • The opportunities of SLM adoption across sectors
  • Challenges, risks, and strategies for responsible adoption
  • Best practices for leveraging its capabilities in different sectors

Additionally, the panel examined the role of SLMs in driving forward some of the recomendations set out in the UK Government's AI Opportunities Action Plan.


Summary:

Speakers

  • Andrew Burgess, Co-Founder and CEO, Greenhouse AI

  • Dr. Juan Bernabé-Moreno, Director, IBM Research Europe

  • Grace Adamson, AI Product Marketer, Snowflake

  • Edward Kelly, UK and ROI Public Sector Lead, Databricks

  • Usman Ikhlaq, Moderator and Programme Manager – Artificial Intelligence, techUK 

 

Recording:

Summary:


Key themes and highlights:

1. What are Small Language Models?

  • The discussion began with an overview of SLMs, defined as compact models that are built for specific tasks or domains. These models are light, fast and require fewer computational resources, making them easier to fine-tune and more efficient to deploy on local servers, edge devices, or even personal hardware.
  • Key benefits include reduced infrastructure costs, increased data privacy, and improved performance for real-time and industry-specific applications. As AI adoption becomes more targeted and business-driven, SLMs offer a strategic advantage for organisations seeking control, adaptability, and value.

2. Opportunities and industry value

SLMs are opening new doors for innovation across sectors. Highlights from the discussion included:

  • Lower computational costs that enable adoption beyond large enterprises

  • Faster inference speeds suited to live chat, diagnostics, and automation

  • Greater accessibility for start-ups, SMEs, and public sector teams

  • Easier fine-tuning for use cases such as fraud detection, medical diagnosis, and legal automation

  • Growing relevance in agentic and compound AI systems

Speakers also discussed how SLMs can contribute to the UK’s broader innovation goals, including the ambitions outlined in the AI Opportunities Action Plan. Their potential to drive secure, sustainable, and sector-specific AI makes them a valuable tool for economic growth and public sector transformation.


Challenges and considerations

The panel also addressed the limitations and risks of SLMs. While these models offer many advantages, careful planning is needed to deploy them responsibly and at scale. Potential concerns raised included:

  • Limited generalisation and reasoning capabilities compared to LLMs

  • Higher risk of hallucination and bias when trained on narrow or synthetic datasets

  • Challenges in managing model sprawl across departments

  • The need for improved benchmarking, explainability, and governance tools

The conversation highlighted the importance of embedding trust and transparency into AI development from the outset, particularly as organisations explore models for high-stakes decision-making.


SLMs in practice: real-world use cases

The session included practical examples of SLM deployment in the UK and beyond:

  • Public sector organisations using AI to map and monitor environmental changes

  • Healthcare teams exploring diagnostic tools that run securely on local devices

  • Financial services adopting fine-tuned SLMs for fraud detection and compliance workflows

  • Enterprise support teams using lightweight AI agents for document summarisation and knowledge retrieval

  • Cybersecurity applications using on-device models to detect threats in real time

Each use case demonstrated the value of smaller, more focused models for real-world tasks that require speed, security, and efficiency.


Getting started with SLMs

The panellists offered a range of recommendations for organisations looking to explore Small Language Models:

  • Begin with a clearly defined use case aligned to business goals

  • Focus on data quality and governance as a foundation for success

  • Pilot with a larger model if needed, then scale down as performance is validated

  • Plan for explainability and monitoring from the start

  • Balance efficiency and performance when evaluating model size

Organisations were encouraged to think strategically about how SLMs fit within their broader AI ambitions and infrastructure, rather than viewing them as standalone tools.

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Contact the team

Usman Ikhlaq

Usman Ikhlaq

Programme Manager - Artificial Intelligence, techUK

Sue Daley OBE

Sue Daley OBE

Director, Technology and Innovation

Tess Buckley

Tess Buckley

Programme Manager - Digital Ethics and AI Safety, techUK

Laura Foster

Laura Foster

Associate Director - Technology and Innovation, techUK

Nimmi Patel

Nimmi Patel

Head of Skills, Talent and Diversity, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Heather Cover-Kus

Heather Cover-Kus

Head of Central Government Programme, techUK

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Authors

Usman Ikhlaq

Usman Ikhlaq

Programme Manager, Artificial Intelligence, techUK

Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence. 

He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.

Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign. 

Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech. 

Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London. 

When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.

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