Large language models (LLMs) are often praised for exhibiting near-human performance on a wide range of tasks and valued for their ability to hold a general conversation. The rise of agentic AI systems is, however, ushering in a mass of applications in which language models perform a small number of specialized tasks repetitively and with little variation. Here we lay out the position that small language models (SLMs) are sufficiently powerful, inherently more suitable, and necessarily more economical for many invocations in agentic systems, and are therefore the future of agentic AI. Our argumentation is grounded in the current level of capabilities exhibited by SLMs, the common architectures of agentic systems, and the economy of LM deployment. We further argue that in situations where general-purpose conversational abilities are essential, heterogeneous agentic systems (i.e., agents invoking multiple different models) are the natural choice. We discuss the potential barriers for the adoption of SLMs in agentic systems and outline a general LLM-to-SLM agent conversion algorithm. Our position, formulated as a value statement, highlights the significance of the operational and economic impact even a partial shift from LLMs to SLMs is to have on the AI agent industry. We aim to stimulate the discussion on the effective use of AI resources and hope to advance the efforts to lower the costs of AI of the present day. Calling for both contributions to and critique of our position, we commit to publishing all such correspondence at https://research.nvidia.com/labs/lpr/slm-agents.
Despite the impressive capabilities of large language models, their substantial computational costs, latency, and privacy risks hinder their widespread deployment in real-world applications. Small Language Models (SLMs) with fewer than 10 billion parameters present a promising alternative; however, their inherent limitations in knowledge and reasoning curtail their effectiveness. Existing research primarily focuses on enhancing SLMs through scaling laws or fine-tuning strategies while overlooking the potential of using agent paradigms, such as tool use and multi-agent collaboration, to systematically compensate for the inherent weaknesses of small models. To address this gap, this paper presents the first large-scale, comprehensive study of <10B open-source models under three paradigms: (1) the base model, (2) a single agent equipped with tools, and (3) a multi-agent system with collaborative capabilities. Our results show that single-agent systems achieve the best balance between performance and cost, while multi-agent setups add overhead with limited gains. Our findings highlight the importance of agent-centric design for efficient and trustworthy deployment in resource-constrained settings.
Open-weight Small Language Models(SLMs) can provide faster local inference at lower financial cost, but may not achieve the same performance level as commercial Large Language Models (LLMs) that are orders of magnitudes larger. Consequently, many of the latest applications of LLMs, such as software engineering agents, tend to be evaluated on larger models only, leaving the issue of improving the cost-benefit trade-off of such applications neglected. This paper proposes Atropos, a predictive early-termination analysis and hotswap technique that aims to improve the cost-benefit trade-off for LLM-based agents that use self-consistency. The core component of ATROPOS is a predictive model based on structural properties of LLM inferences: after merging multiple agentic inference paths into a graph representation, ATROPOS uses Graph Convolutional Network (GCN) to predict whether an ongoing inference will eventually succeed or not. If an agentic task instance running on the source LLM is predicted to fail, ATROPOS subsequently performs hotswapping, i.e., migrating the on-going inference context onto the more capable target LLM: this is feasible because LLM contexts are stateless. An empirical evaluation of ATROPOS using three recent LLM-based agents shows that ATROPOS can predict early termination of eventually failing inferences with the accuracy of 0.85 at the midpoint of the inference. Hotswapping LLMs for such inferences can convert up to 27.57% of them to be successful. Consequently, ATROPOS achieves 74.35% of the performance of closed LLMs with as low as only 23.9% of the cost.
Large language models are increasingly being deployed as autonomous agents yet their real world effectiveness depends on reliable tools for information retrieval, computation and external action. Existing studies remain fragmented across tasks, tool types, and training settings, lacking a unified view of how tool-use methods differ and evolve. This paper organizes the literature into three paradigms: prompting as plug-and-play, supervised tool learning and reward-driven tool policy learning, analyzes their methods, strengths and failure modes, reviews the evaluation landscape and highlights key challenges, aiming to address this fragmentation and provide a more structured evolutionary view of agentic tool use.