Are Small Language Models Ready to Compete with Large Language Models for Practical Applications?

The rapid rise of Language Models (LMs) has expanded their use in several applications. Yet, due to constraints of model size, associated cost, or proprietary restrictions, utilizing state-of-the-art (SOTA) LLMs is not always feasible. With open, smaller LMs emerging, more applications can leverage their capabilities, but selecting the right LM can be challenging. This work conducts an in-depth experimental analysis of the semantic correctness of outputs of 10 smaller, open LMs across three aspects - task types, application domains and reasoning types, using diverse prompt styles. We demonstrate that most effective models and prompt styles vary depending on the specific requirements. Our analysis provides a comparative assessment of LMs and prompt styles using a proposed three-tier schema of aspects for their strategic selection based on use-case and other constraints. We also show that if utilized appropriately, these LMs can compete with, and sometimes outperform, SOTA LLMs like DeepSeek-v2, GPT-3.5-Turbo, and GPT-4o.

arXiv Preprint (Submitted to ARR)