The Rise of Small Language Models: Powering Real-Time Intelligence at the EdgeFEATURED 5H AGO
The Rise of Small Language Models: Powering Real-Time Intelligence at the Edge
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At Mobile World Congress Barcelona, industry experts came together from around the world to delve into the intersection of 5G, AI and Edge and how next-generation connectivity will enable Edge AI to drive digital transformation through the strategic implementation of small language models (SLMs). As AI adoption grows, advanced connectivity, real-time processing and scalable AI models will shape the future of intelligent automation across industries.
While large-scale AI models such as ChatGPT, Gemini and Anthropic dominate the headlines, the unveiling of DeepSeek is shifting the focus towards more efficient, cost-effective AI solutions. A new generation of SLMs is emerging, offering enterprises tailored AI capabilities that prioritize speed, efficiency and domain-specific intelligence.
With the number of connected IoT devices expected to surpass 15 billion within two years, according to
GSMA Intelligence, organizations urgently need low-latency, high-performance AI solutions that can process and act on real-time data. This is where Edge AI comes into play. By building real-time data pipelines, Edge AI ensures SLMs can access and process high-quality, structured data—a critical factor for industries like manufacturing, logistics and smart infrastructure.
To support this growing ecosystem, enterprises are turning to scalable, secure and high-performance network solutions to enable faster and more reliable AI applications that make data-driven insights more actionable than ever before.
Small language models are gaining traction
SLMs are designed to be smaller, more efficient and purpose-built for specific use cases. Unlike massive AI models that require extensive computational resources, SLMs prioritize agility, scalability and cost-efficiency—key factors for industries adopting Edge AI and real-time analytics.
For example, a logistics company using Edge AI to manage its supply chain can deploy SLMs to analyze shipment data in real time, identifying potential delays or inefficiencies before they impact delivery schedules. This scalable approach allows logistics providers to optimize routes, improve inventory management and enhance overall operational efficiency—all while keeping data processing secure and within company-controlled environments. SLMs also require less processing power, making them ideal for on-premises and edge environments where cloud dependency is not feasible.
Edge AI: turning data into actionable intelligence
The crux of Edge AI is to make AI more actionable across industries. It does this by breaking down the long-standing silos between IT and OT systems. OT systems control industrial machinery, sensors and production equipment, while IT systems manage data, analytics and enterprise applications. Historically, these systems have operated in isolation, creating data silos that hinder true AI-driven automation. Edge AI integrates IT and OT systems, connects multiple data sources into one seamless data flow and thereby enables real-time decision-making.
By embedding intelligence directly into workflows, Edge AI and SLMs unlock new levels of efficiency, automation and predictive insights, enabling environments to fully harness the power of advanced analytics.
For example, in manufacturing, an Edge AI system can continuously monitor production lines and trigger proactive maintenance alerts before failures occur, minimizing downtime and maximizing efficiency. Similarly, it can enable computer vision applications to analyze product quality in real-time, allowing manufacturers to immediately identify defects and adjust processes, reducing waste and ensuring consistency.
Advancing AI at the edge with next-generation connectivity
While Edge AI is transforming industries, its ability to function at scale and in real time is strengthened by high-performance connectivity. Technologies such as private 5G, advanced Wi-Fi, and edge compute provide ultra-secure and reliable low-latency data transmission and are a critical enabler of real-time AI applications in environments like factories, warehouses, hospitals and smart cities.
By eliminating network bottlenecks, enhancing security and offering dedicated bandwidth, these innovative networks ensure that Edge AI applications can instantly access, process and act on mission critical data.
What’s next: the future of AI at the edge
The shift toward Edge AI and SLMs marks a significant evolution in how organizations leverage AI. Instead of relying solely on large, resource-intensive models, organizations can now adopt more efficient AI architectures that deliver real-time intelligence without the high cost.
At Mobile World Congress (MWC) Barcelona, AI and how it can enhance global connectivity was a central theme, particularly around how SLMs, Edge AI and next-generation connectivity are empowering the next wave of digital transformation. The ability to combine scalable AI models, real-time processing and advanced connectivity is shaping the future of intelligent automation across industries and ushering in a smaller, faster and smarter digital transformation frontier.