Towards Harnessing the Collaborative Power of Large and Small Models for Domain Tasks

Large language models (LLMs) offer strong capabilities but raise cost and privacy concerns, whereas small language models (SLMs) facilitate efficient and private local inference yet suffer from limited capacity. To synergize the complementary strengths, we introduce a dynamic collaboration framework, where an SLM learns to proactively decide how to request an LLM during multi-step reasoning, while the LLM provides adaptive feedback instead of acting as a passive tool. We further systematically investigate how collaboration strategies are shaped by SLM and LLM capabilities as well as efficiency and privacy constraints. Evaluation results reveal a distinct scaling effect: stronger SLMs become more self-reliant, while stronger LLMs enable fewer and more informative interactions. In addition, the learned dynamic collaboration strategies significantly outperform static pipelines and standalone inference, and transfer robustly to unseen LLMs.

Fine-tuning unlocks large language models (LLMs) for specialized applications, but its high computational cost often puts it out of reach for resource-constrained organizations. While cloud platforms could provide the needed resources, data privacy concerns make sharing sensitive information with third parties risky. A promising solution is split learning for LLM fine-tuning, which divides the model between clients and a server, allowing collaborative and secure training through exchanged intermediate data, thus enabling resource-constrained participants to adapt LLMs safely. % In light of this, a growing body of literature has emerged to advance this paradigm, introducing varied model methods, system optimizations, and privacy defense-attack techniques for split learning. To bring clarity and direction to the field, a comprehensive survey is needed to classify, compare, and critique these diverse approaches. This paper fills the gap by presenting the first extensive survey dedicated to split learning for LLM fine-tuning. We propose a unified, fine-grained training pipeline to pinpoint key operational components and conduct a systematic review of state-of-the-art work across three core dimensions: model-level optimization, system-level efficiency, and privacy preservation. Through this structured taxonomy, we establish a foundation for advancing scalable, robust, and secure collaborative LLM adaptation.

The recent success of large language models (LLMs) has been largely driven by vast public datasets. However, the next frontier for LLM development lies beyond public data. Much of the world's most valuable information is private, especially in highly regulated sectors such as healthcare and finance, where data include patient histories or customer communications. Unlocking this data could represent a major leap forward, enabling LLMs with deeper domain expertise and stronger real-world utility. Yet, these data cannot be shared because they are distributed across institutions and constrained by privacy, regulatory, and organizational barriers. Moreover, institutional datasets are typically non-independent and identically distributed (non-IID), differing across sites in population characteristics, data modalities, documentation patterns, and task-specific label distributions. In this paper, we demonstrate a practical approach to unlocking private and distributed institutional data for LLM adaptation through federated collaboration across data silos. Built on the Sherpa.ai Federated Learning platform, our framework enables nodes to jointly fine-tune a shared LLM without exchanging private data. We evaluate this approach through a cross-domain benchmark in healthcare and finance, using four closed-ended question answering and classification datasets: MedQA, MedMCQA, FPB, and FiQA-SA. We compare three parameter-efficient fine-tuning (PEFT) strategies-LoRA, QLoRA, and IA3-across pretrained backbones under non-IID settings reflecting institutional data heterogeneity. Our results show that federated fine-tuning performs close to centralized training and outperforms isolated single-institution learning. From a Green AI perspective, QLoRA and IA3 improve efficiency with limited accuracy degradation, supporting federated PEFT as a viable approach for adapting LLMs where data cannot be shared.