Optimizing the Phi-2 Small Language Model for Real-time Chatbot Applications Using Parameter-Efficient Fine-Tuning (PEFT) with QLoRA Quantization

Parameter-efficient fine-tuning (PEFT) and low-bit quantization are now standard tools for adapting language models under tight compute budgets, yet their interaction is most often studied on billion-parameter models where the design space is expensive to explore. We ask a complementary question: on a specific, fully reproducible 60M-parameter encoder-decoder model (T5-small) and a single-table text-to-SQL benchmark (WikiSQL), how much task accuracy does each efficiency knob actually cost? We run a controlled, single-variable study over (i) LoRA rank r in {2, 4, 8, 16, 32}, (ii) the set of adapted modules, and (iii) numerical precision. We report task accuracy alongside system-level metrics including trainable parameters, peak training memory, inference latency, and throughput, and frame adaptation as a constrained trade-off rather than an accuracy-only objective. Our results show that LoRA with r=16 recovers within 11.6 percentage points of full fine-tuning accuracy (59.6% vs. 71.2% exact-match) while training fewer than 1% of parameters and consuming 31% less peak GPU memory. Within this setting, rank beyond r=16 yields no measurable accuracy gain. QLoRA with INT8 and NF4 quantization achieves comparable accuracy (52.8% and 53.2%) at dramatically lower memory cost (0.60 GB each), demonstrating a compelling trade-off for memory-constrained deployments. All code, configurations, and logs are released for full reproducibility.

This paper presents a comparative study of parameter-efficient fine-tuning (PEFT) methods, including LoRA and QLoRA, applied to the task of adapting large language models to the Bashkir language, a low-resource agglutinative language of the Turkic family. Experimental evaluation is conducted on a Bashkir text corpus of 71k documents (46.9M tokens) using models of various architectures: DistilGPT2, GPT-2 (base, medium), Phi-2, Qwen2.5-7B, DeepSeek-7B, and Mistral-7B. To improve the reliability of results, each configuration was trained with three different random seeds. The lowest perplexity on the test set was obtained for GPT-2 medium with full fine-tuning (3.34). Meanwhile, QLoRA applied to Mistral-7B (3.79) and Phi-2 (3.81) achieved comparable quality with over 40 times fewer trainable parameters. However, we also observed cases of significant quality degradation when using PEFT for certain architectures (e.g., DeepSeek-7B with rank 8, perplexity = 129.55), indicating that the outcome depends critically on the choice of the base model and its tokenizer. Additionally, a qualitative analysis of generated texts based on Bashkir prompts revealed that models with the best perplexity do not necessarily produce the most coherent outputs: QLoRA-tuned models generated monolingual Bashkir continuations, whereas the fully fine-tuned model with the lowest perplexity frequently switched to English. The results suggest that QLoRA on 7B-scale models offers an effective compromise between quality and computational cost for Bashkir. To ensure reproducibility, open data, code, and trained adapters will be released upon acceptance.

As increasingly large pre-trained models are released, deploying them on edge devices for privacy-preserving applications requires effective compression. Recent works combine quantization with the fine-tuning of high-precision LoRA adapters, which can substantially reduce model size while mitigating the accuracy loss from quantization. However, edge devices have inherently heterogeneous capabilities, while performing configuration-wise fine-tuning for every quantization setting is computationally prohibitive. In this paper, we propose CoA-LoRA, a method that dynamically adjusts the LoRA adapter to arbitrary quantization configurations (i.e., the per-layer bit-width choices of a pre-trained model) without requiring repeated fine-tuning. This is accomplished via a configuration-aware model that maps each configuration to its low-rank adjustments. The effectiveness of this model critically depends on the training configuration set, a collection of configurations chosen to cover different total bit-width budgets. However, constructing a high-quality configuration set is non-trivial. We therefore design a Pareto-based configuration search that iteratively optimizes the training configuration set, yielding more precise low-rank adjustments. Our experiments demonstrate that, unlike the state-of-the-art methods that require fine-tuning a separate LoRA adapter for each configuration, CoA-LoRA incurs no additional time cost while achieving comparable or even superior performance to those methods.