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Unlock the Power of AI for Government Agencies: Why Small Language Models are the Key

Writer's picture: Bill TolsonBill Tolson

Artificial intelligence (AI) has become an increasingly important tool for organizations across various sectors in today's rapidly developing technological environment. Government agencies are exploring leveraging AI to improve operations, enhance public services, and streamline decision-making processes.


With the advent of Generative AI (Gen AI), large language models (LLMs) like GPT-4, Gemini, Claude, and Microsoft’s Copilot have garnered significant attention from large organizations. Small language models (SLMs) are now emerging as a more suitable AI option for smaller security-conscious organizations like state and local government agencies. This blog will explore how SLMs can significantly benefit these organizations - addressing specific concerns and providing tailored solutions.


Understanding Gen AI-Language Models

Before discussing the advantages of SLMs for government agencies, it's a good idea to define the current Gen AI language models and how they differ in size and use case.


Large Language Models (LLMs)

Large language models (LLMs), such as ChatGPT and Gemini, are AI systems trained on enormous amounts of text data, often containing billions of parameters. These models, such as GPT-4, Claude, and Gemini, can utilize a human-like narrative, answer queries, generate computer code, and perform a wide range of language-related tasks. LLMs are typically hosted on cloud platforms and accessed through APIs, requiring significant computational resources.


Small Language Models (SLMs)

Small language models (SLMs) are more compact AI systems with fewer parameters, typically ranging from millions to a few billion. Despite their smaller size, SLMs can be highly effective for specific tasks and organizational domains. They can be deployed on-premises or even on edge devices, making them more versatile and manageable for organizations with specific limitations or needs.


Key Differences Between LLMs and SLMs

The primary differences between LLMs and SLMs lie in their size, resource requirements, and deployment options:

  • Size and complexity: LLMs are much larger and more complex, while SLMs are more compact and (topic) focused.

  • Resource requirements: LLMs demand substantial computational power and storage, whereas SLMs can operate in smaller environments with more modest resource requirements (including smaller data sets).

  • Deployment flexibility: LLMs are typically cloud-based, while SLMs can be deployed on-premises (private clouds), on edge devices, or in hybrid environments.

  • Customization: SLMs are often easier to fine-tune for specific tasks, domains, and use cases, making them more adaptable to special corporate requirements.


Why SLMs can be a Better Solution for Government Agencies


The use of Gen AI in smaller organizations has become a focus for state and local agencies due to the promise of increased productivity and automation. However, the need for experienced personnel and expensive computational resources has dramatically slowed the adoption. However, as technology has progressed, many speed bumps have disappeared.

State and local government agencies face unique challenges and requirements that make SLMs a more attractive option:

  • Budget constraints: Many agencies operate with limited financial resources, making cost-effective solutions crucial.

  • Data privacy and security: Government organizations handle huge amounts of sensitive information that require stringent protection and compliance with regulations.

  • Specific use cases: Agencies will have potentially specialized needs that require tailored AI solutions rather than general-purpose cloud models.

  • Integration with existing systems: Unlike cloud-based LLMs, government IT infrastructures may require AI solutions to seamlessly integrate with aging systems.


Given these considerations, SLMs can greatly benefit state and local government agencies. They can be designed to address specific concerns and provide focused solutions.


Advantages of Small Language Models for Government Agencies


Data Privacy and Security

One of the critical concerns for government agencies is protecting sensitive agency information. Many organizations have hesitated to upload sensitive data used for AI model training into a public cloud-based platform that could use your sensitive data for ongoing AI training. This is not to say that training data cannot be stored in a properly secured cloud repository - which is a different process from allowing sensitive data to be updated and used by cloud-based public Gen AI models.


Data Residency

SLMs can be trained and deployed on-premises, ensuring that sensitive data remains within the organization's security footprint and control as well as being stored within specific geographic boundaries. This aspect is particularly important for government agencies that handle confidential citizen information (PII), legal documents, and classified data.


Reduced Data Exposure

By avoiding sending data to external public cloud services, SLMs minimize the risk of data breaches/theft and unauthorized access. This is crucial for maintaining public trust and protecting sensitive information from cyber threats.


Compliance Adherence

On-premises deployment of SLMs can help government agencies comply with data privacy regulations, such as the GDPR and CCPA/CPRA, as well as various country and state data privacy laws. By keeping data within their secure infrastructure, agencies can more easily demonstrate compliance and maintain control over data handling and processing practices.


Cost-Effectiveness

Government agency budget constraints are a well-known challenge for state and local agency IT departments. Public Gen AI cloud applications are typically priced based on complex usage models, often measured in API calls, tokens, or processing time. This means you pay for the resources you consume rather than a fixed monthly or annual fee. However, employee usage is inherently tricky to gauge, and once it is available, employees will far outpace projected usage, causing much higher costs.


SLMs, based on local controls and computation equipment, offer lower-cost advantages over public cloud-based AI applications, making them an attractive cost-control option for agencies.


Lower SLM operational costs can be less expensive than large language models, especially for smaller agencies with limited resources. The reduced computational and storage requirements over LLMs and the ability to deploy on existing infrastructure can lead to significant cost savings.


Deploying SLMs on-premises offers a more predictable cost model, as there are no subscription fees or complex variable costs associated with the large cloud-based Gen AI services. This allows agencies to plan better and manage their AI-related expenses, which is crucial for public sector budgeting.


Scalability and Flexibility

Government agencies must often adapt to new legal and regulatory requirements and emerging workloads. SLMs can be scaled up or down to meet changing workloads and local resource requirements. This flexibility allows agencies to start small and gradually expand their AI capabilities as needs grow and budgets allow.


Tailored and Specialized Models

SLMs can be fine-tuned to specific use cases and domains, providing more accurate (fewer false positives) and relevant results for government agency needs. This customization allows agencies to create AI solutions that precisely meet their unique needs rather than relying on general-purpose AI models.


SLMs are usually trained on organizationally specific data, such as legal documents, policy guidelines, forecasting, citizen feedback, or citizen data, providing more accurate and specific responses to queries to enable speedier citizen requests (FOIA) for agency work product. This specialization allows agencies to create local AI applications that truly understand the nuances of specific organizational operations and can provide more valuable insights and assistance - faster.


Integration with Existing Systems

Many government agencies must rely on legacy systems and established workflows. SLMs offer advantages in terms of integration. SLMs can be designed to integrate with existing government agency systems and workflows, minimizing employee disruption and maximizing return on investment (ROI). This is particularly important for agencies that cannot afford to overhaul their entire IT infrastructure but still want to begin realizing AI technologies' benefits.


Improved Efficiency and Productivity

SLMs can significantly enhance the efficiency and productivity of agency employees because they can be created and trained with specific agency tasks in mind.


Automation

SLMs can automate routine tasks, freeing government staff to focus on more urgent and strategic work. This can improve service delivery and efficiently use agency data and human resources.

Faster Response Times

SLMs can respond quicker to citizen inquiries, such as Freedom of Information Act requests (FOIA), improving overall agency efficiency and citizen satisfaction. This can lead to an increased level of public service and increased trust in government operations.


Successful Implementations of SLMs in Government Agencies

To illustrate the practical benefits of SLMs in agency settings, let's explore a few real-world examples:


Case Study 1: City of Springfield Document Processing

The City of Springfield implemented an SLM to automate the processing of building permit applications. The model was trained in local zoning laws and building codes, allowing it to review and categorize applications quickly. As a result, the city reduced processing times by 60% and improved accuracy in permit approvals.


Case Study 2: State Department of Transportation Chatbot

A state Department of Transportation deployed an SLM-powered chatbot to handle routine inquiries about road conditions, construction updates, and licensing information. The chatbot, trained on department-specific data, successfully handled 70% of incoming queries, reducing citizens' wait times and freeing up staff to handle more urgent or complex issues.


Case Study 3: County Health Department Data Analysis

A county health department used an SLM to analyze public health data and identify trends in local health issues. The model, trained in historical health records and demographic information, helped the department allocate resources more effectively and develop targeted public health campaigns

.

The above case studies are just a few of the many local agency use cases.


Best Practices for Implementing SLMs in Government Agencies

To maximize the benefits of SLMs, government agencies should consider adopting the following best practices:


  1. Assess the agency's needs and goals: Clearly define the problems(s) you want to solve and the outcomes you hope to achieve with Gen AI adoption.

  2. Select the appropriate SLM architecture and training datasets: Choose a model that aligns with your agency's requirements and ensures you have high-quality, relevant data for training. Additionally, you should regularly add new content to the training datasets to enhance the model’s capabilities.

  3. Because much of an agency's data could contain sensitive data, including PII, it should develop a robust data governance and security framework – and implement strict protocols for data handling, access controls, and privacy protection.

  4. Provide adequate and ongoing training and support for staff: Ensure that employees understand how to use and interact with the SLM effectively.

  5. Monitor and evaluate the SLM's performance: Regularly assess the model's accuracy, efficiency, and impact on agency operations, adjusting as needed.


Agency Gen AI, Small Language Model Usage Will Multiply

Small language models offer significant advantages for state and local government agencies looking to harness the power of AI while addressing their unique challenges and requirements. By providing enhanced data privacy and security, cost-effectiveness, scalability, and domain-specific knowledge, SLMs present a compelling solution for these organizations seeking to improve their operations and services.


As Gen AI continues to evolve, it's crucial for government agencies to carefully consider their unique needs and goals when considering SLM adoption and selection of Gen AI models. SLMs offer a balanced approach that can deliver powerful, focused AI capabilities while controlling costs and securing sensitive data and resources.


We encourage state and local government agencies to explore the potential of SLMs to enhance their operations, improve public services, and drive innovation in the public sector. By embracing these adaptable AI solutions, government agencies can better serve their communities and adjust to the changing technological landscape while maintaining the trust and security that citizens expect from their public institutions.


restorVault Enables Gen AI Adoption in State and Local Agencies

restorVault's patented data virtualization solutions offer government agencies a powerful technology foundation for successfully adopting and leveraging generative AI technologies.

By addressing key challenges such as data security, access, cost optimization, and scalability, restorVault enables agencies to harness Gen AI's full potential while maintaining compliance and control.


Key benefits of using restorVault's data virtualization technology for government AI initiatives:

  • Enhanced Data Security: restorVault's immutable storage and encryption capabilities protect sensitive government data from breaches, ransomware attacks, unauthorized access, and data theft.

  • Cost Optimization: restorVault helps organizations significantly reduce storage costs and avoid vendor lock-in by virtualizing sensitive and inactive data.

  • Scalability and Flexibility: restorVault's solutions can be quickly and easily scaled to accommodate growing data volumes and evolving AI needs.

  • Improved Data Access and Management: restorVault simplifies data access and management by consolidating large data sets from across numerous data silos enabling government agencies to extract valuable insights and make data-driven decisions much faster.

  • Compliance Adherence: restorVault's data virtualization solutions can help government agencies meet regulatory requirements, including emerging data privacy laws.


By leveraging restorVault's innovative data virtualization technology, government agencies can:

  • Accelerate AI adoption: Overcome data-related challenges and streamline AI implementation.

  • Improve AI model performance: Ensure AI models can access high-quality, evolving, well-managed training data.

  • Enhance citizen services: Utilize AI to deliver more efficient and personalized services to citizens.

  • Strengthen operational efficiency: Optimize workflows and reduce costs through AI-powered automation.


restorVault's data virtualization solutions are essential for government agencies seeking to adopt generative AI and unlock its full potential successfully.


restorVault empowers state and local agencies to drive innovation, improve efficiency, and deliver better services to citizens by addressing key challenges and providing a robust foundation for AI initiatives.


Please contact us today to learn how restorVault can help your company with Gen AI adoption.



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