CHAPTER 05 · GENERATIVE AI

Smaller models and distillation

Progress in AI is not always about making models bigger. A lot of research looks for more efficient solutions.

What is it?

Progress is not only about ever larger models. Through distillation, a large model “teaches” a smaller one that is faster and cheaper yet almost as good at certain tasks. Smaller models can even run on a phone or laptop.

An everyday example

A translator that works on your phone without an internet connection usually uses a smaller, specially tuned model.

Why does it matter?

Smaller models cut costs and energy use and allow more privacy, because the data do not leave the device.

A common misconception

That a smaller model is always worse. For a narrow task it can be just as good; for broad knowledge it usually lags behind.

In more detail

What is distillation?

A process in which a smaller model learns to imitate the useful behaviour of a larger system.

What is quantisation?

Storing a model’s numbers with fewer bits, which can reduce how much memory it needs.

Why does this matter?

Smaller models can run on smaller devices or respond faster.

What is the trade-off?

On some tasks we may lose quality, accuracy or abilities.

Remember: Efficiency is a balance between quality, cost and speed.

Reliable sources

Last reviewed 1 November 2026. An explainer, not professional, legal or medical advice. For rules and figures that change, check the official version.