What are small language models and how do they differ from large ones?

What are small language models and how do they differ from large ones? Microsoft recently released its latest small language model that can operate directly on the user's computer. If you haven't followed the AI industry closely, you might be asking: what exactly a small language model (SLM)? As AI becomes increasingly central to how we work, learn and solve problems, understanding the different types of AI models has never been more important. Large language models (LLMs) such as ChatGPT, Claude, Gemini and others are in widespread use.