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Frontier results, on device

Talkat Observe 2026 · on Thursday, 2026-06-04· [large-language-models, machine-learning]
slides:none on file

Comparative evals use Phoenix and production traces from Mima to show local models replacing frontier calls: testing Gemma, Qwen, Llama 3.2 against Claude Sonnet finds Llama 3.2 (3B) with a few‑shot prompt plus post‑processing hits 100% JSON validity, 100% structural validity and ~93% factual consistency, P50 ≈1s and P95 under 3.5s, while saving roughly $1/day in inference. The process: prototype on a foundation model, build a golden dataset, test small→large, iterate prompts and harness code.

AI-written summary · about

  1. 0:00The hidden costs of AI
  2. 1:10Analyzing inference expenses
  3. 2:51Introduction to SLMs
  4. 4:33Evaluating local model performance
  5. 6:52Local AI in practice
  6. 8:47Framework for right-sizing AI
  7. 10:47Setting up golden datasets
  8. 12:58Model selection process
  9. 15:55Finding the 'Sage' model
  10. 19:22Optimizing with prompt engineering
  11. 21:12Iterative prompt testing
  12. 23:04Closing the performance gap
  13. 25:40Post-processing for reliability
  14. 27:45Regression and maintenance
  15. 28:36Next steps for local adoption
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