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Nov 28, 2025
6 min read

Small Language Models Are the Future of AI Workflows

Why the latest research on Nemotron-Flash validates what I've learned building AI pipelines: smaller, faster models often outperform their larger cousins in production

The Big Model Trap

There’s a tendency in AI to assume bigger is always better. Need better results? Scale up. Want more capabilities? Add parameters. But when you’re building real AI workflows (agents, pipelines, automation) this mindset can lead you astray.

I’ve been reading NVIDIA’s recent paper on Nemotron-Flash, and it crystallizes something I’ve learned firsthand over the past year and a half: small language models aren’t just “good enough” for many workflows. They’re often the optimal choice.

Learning This the Hard Way

For the last eighteen months, I’ve been running an experiment: building a data lake of my meetings. Every class, every office hours session, every conversation. All captured and processed through LangGraph agents to generate insights, extract action items, and create structured notes. The result is essentially an indexed database with a meta-representation of almost every professional interaction in my life.

When I started, I did what most people do: I threw everything at the biggest, most expensive models available. If you’re going to build something ambitious, use the best tools, right?

Wrong.

What I discovered, especially for specific, well-defined tasks, was counterintuitive. When I needed action items extracted from meeting notes in a precise format that could feed into my task management system, the massive models weren’t just overkill. They were often worse. More latency. More cost. And surprisingly, not always more accurate for the specific task at hand.

I ended up settling on much smaller models. Even older ones like Llama 3.1 8B turned out to be remarkably effective for these focused extraction tasks. The key insight: when you know exactly what you need, a smaller model trained or prompted for that specific job often outperforms a general-purpose giant.

NVIDIA’s Research Validates This

Reading the Nemotron-Flash paper felt like seeing my empirical observations formalized into rigorous research. The paper opens with a deceptively simple observation:

“Most existing SLM designs prioritize parameter reduction to achieve efficiency; however, parameter-efficient models do not necessarily yield proportional latency reductions.”

This is the key insight. When we talk about “efficient” models, we usually mean fewer parameters. But parameters aren’t what matters in production. Latency and throughput are what matter. A model that’s 50% smaller but takes the same time to respond hasn’t actually improved your user experience or reduced your costs.

NVIDIA’s team took a different approach. Instead of asking “how small can we make this?”, they asked “how fast can we make this while maintaining quality?” The results are striking:

  • Nemotron-Flash-3B achieves 1.7× lower latency and 6.4× higher throughput compared to Qwen2.5-3B
  • Nemotron-Flash-1B delivers 45.6× higher throughput than Qwen3-0.6B while achieving 5.5% higher accuracy

Read that again: the smaller model is both faster AND more accurate.

Why This Matters for Agentic Workflows

My meeting pipeline is just one example, but the pattern applies everywhere we’re using non-deterministic LLM decision-making within our graphs and agentic workflows. When you’re building these systems, where models are called repeatedly in loops, making decisions, calling tools, and iterating, latency compounds. A 100ms improvement per call becomes seconds saved per workflow. Seconds become minutes. Minutes become the difference between a system that feels responsive and one that feels broken.

And it’s not just latency. When you’re optimizing for production, you’re juggling multiple constraints simultaneously:

  • Speed: How fast can you get a response?
  • Reliability: How consistent are the outputs?
  • Accuracy: How correct are the results for your specific task?
  • Cost: What’s this going to cost at scale?

Small, purpose-fit models often win on all four dimensions for well-defined tasks within larger workflows.

The paper’s conclusion puts it well:

“Rather than merely offering a smaller LLM, this work re-imagines small models from the perspective of real-world latency and throughput.”

This is the mindset shift we need. Stop thinking about model size as a compromise. Start thinking about it as a design choice optimized for your actual constraints.

The Technical Insight: It’s Not Just About Depth

One finding that surprised me: the conventional wisdom that “deeper is better” doesn’t hold when you optimize for latency.

“Deep-thin models may not be latency-optimal, and the optimal depth-width ratio generally increases with the target latency budget.”

The researchers found that for a given latency budget, there’s an optimal balance between model depth and width. Going deeper doesn’t always help, and can actively hurt performance in latency-sensitive scenarios.

They also discovered that hybrid architectures, combining different types of attention mechanisms (standard attention, Mamba2, DeltaNet), can outperform pure architectures. Nemotron-Flash interleaves these operators in a pattern discovered through evolutionary search, not human intuition.

A Broader Movement

What excites me most is that this isn’t just NVIDIA in a research lab. There’s a whole community pushing in this direction. People optimizing models to run on a 4090, on smaller infrastructure, even on phones. The democratization of AI isn’t just about access to APIs. It’s about being able to run capable models on hardware you own, at speeds that make real applications possible.

It’s a really exciting time to be building in this space.

Practical Implications

If you’re building AI workflows today, here’s what I take from both the research and my own experience:

  1. Don’t default to the biggest model you can afford. Profile your actual latency requirements and work backward.

  2. Throughput matters as much as accuracy. A model that’s 2% less accurate but 10× faster might serve your users better, and cost far less.

  3. Match model size to task specificity. General reasoning? Maybe you need something larger. Extracting structured data in a known format? A small, fast model often wins.

  4. Test on your actual hardware. The paper emphasizes that optimal architectures vary by deployment target. What works on an H100 might not be optimal for edge deployment.

  5. The research is moving fast. Hybrid architectures like Nemotron-Flash suggest we’re only beginning to understand how to optimize small models for real-world deployment.

Looking Forward

I expect we’ll see more research in this direction. As AI moves from demos to production, the constraints shift from “impressive benchmarks” to “sustainable operations.” Small, fast, efficient models aren’t a compromise. They’re often exactly what production systems need.

I’m glad to see NVIDIA’s leadership in this space, and I’m even more excited to see what the broader community builds with these insights.

The models are available on Hugging Face if you want to experiment:


References

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