Exploring LLM Distillation: A Model Distillation Technique

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Abirami Vina
Abirami Vina
Published: March 12, 2025
Updated: March 12, 2025
The introduction of LLMs (large language models), such as GPT-3.5 Turbo and GPT-4, has made a huge impact on AI applications. Their ability to generate human-like responses and handle complex tasks has made LLMs an important tool in various AI solutions.

However, while LLMs are robust at handling difficult tasks, they come with certain challenges. Due to their large size and intensive development needs, these models require substantial computational power and advanced hardware for deployment. Also, the energy consumption and latency related to processing can be problematic in resource-constrained environments.
AI model focusing on irrelevant background features

Estimated Energy Consumption of LLMs Across Different Sizes. (Source)

To tackle these challenges, LLM distillation, a model distillation technique that reduces model size while preserving performance, was introduced. In this article, we'll explore what LLM distillation is, how it works, and why it matters in today’s AI market space.

Understanding LLM Distillation

LLM distillation is a technique used to compress large language models while maintaining their accuracy and efficiency. It involves creating a lightweight version of a powerful LLM that uses fewer resources. Think of it as carrying a pocket-sized dictionary instead of a heavy hardcover one; you still have access to all the words and meanings, but in a more convenient and portable form.

Also, the concept of LLM distillation is part of a broader AI technique known as model distillation. Model distillation is focused on transferring knowledge from a large, complex model to a simpler, smaller one. This process helps businesses reduce computational cost, improve inference speed, and make models more practical for real-world applications.

How LLM Distillation Works

LLM distillation follows a teacher-student framework, where knowledge is transferred from a teacher model (a large LLM) to a student model (a smaller, distilled version). Let’s take a closer look at this framework.

The teacher-student framework works like creating a scaled-down version of a statue. Picture a master sculptor crafting a full-sized statue (teacher model), which requires a large amount of raw materials (training data), a skilled workforce (training process), and significant time.

Now, imagine creating a miniature model (the student model) of this statue for commercial purposes. Instead of starting from scratch, you would analyze the actual statue and take note of the specialized curves and other dimensions.

By studying the master's creation, you can create more miniatures with fewer resources that can be used for different purposes, like collectibles, educational displays, and set properties in movies.

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An Overview of How LLM Distillation Works (Source)

The Concepts Involved in LLM Distillation

LLM distillation involves several key techniques designed to effectively transfer knowledge from the teacher model to the student model. Let’s see some of the popular techniques used in LLM distillation.

Soft Label Training

Soft label training is a method where a smaller model (student model) learns from a larger, more powerful model (teacher model) by receiving more detailed feedback. Instead of giving simple 'right or wrong' answers, like labeling an image as just a 'cat' or 'dog,' the teacher model provides probabilities that show its level of confidence.

For example, instead of saying an image is definitely a cat, it might say 'cat: 80%, tiger: 10%, leopard: 10%.' This means the model is mostly sure it’s a cat but sees some similarities to a tiger or leopard. By learning from these probabilities, the student model gains a deeper understanding, helping it make better decisions and generalize more effectively to new situations.

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Comparing Soft Labels and Hard Labels (Source)

Feature-Based Knowledge Transfer

Meanwhile, in the feature-based technique, the student model learns from the teacher model’s internal architecture. Simply put, instead of only copying the teacher’s answers, the student looks at the teacher’s internal steps - how it recognizes patterns and makes decisions at different stages.

The student model can understand and replicate the teacher model’s thought process at multiple levels, from simple patterns to more complex features. By learning in this way, the student model gains a deeper understanding of the data, allowing it to perform better and make more accurate predictions.

Attention Map Transfer

Another important concept in knowledge transfer is attention mapping. This technique helps the student model learn which parts of the input data are most important in a way similar to the teacher model.

The teacher model doesn’t treat all information equally - it focuses more on certain words, patterns, or features that are crucial for understanding the data. By analyzing how the teacher distributes attention, the student model learns which elements to prioritize and how different pieces of information are connected. This lets the student model process complex language, identify meaningful patterns, and handle challenging tasks with greater accuracy.

Comparing LLM Distillation with Other Types of Distillation

To get a better idea of why LLM distillation is a great option, it's important to compare it with other model optimization techniques. Various methods, such as model quantization, pruning, and low-rank approximation, aim to reduce model size and improve efficiency.

However, each approach comes with its own strengths and limitations. Some techniques focus on reducing memory usage or computation time, while others prioritize maintaining accuracy or improving inference speed. The table below provides a detailed comparison of different model distillation techniques, helping to understand their benefits, trade-offs, and overall impact on AI performance.

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Comparison of Model Distillation Techniques

Benefits of LLM Distillation

You might be wondering if distilled LLMs are really necessary. Here are some advantages of using distilled LLMs over full-scale models that highlight their importance:

  • Faster and Greener Inferences: By streamlining computations, distilled models provide faster responses with less energy demand, making AI-powered services more eco-friendly and accessible.
  • Lower Cloud Computing Costs: Cloud-based AI services enabled by distilled models consume fewer resources, reducing both operational costs and environmental impact by lowering energy-hungry server workloads.
  • Reduced E-Waste: Because they require less powerful infrastructure, distilled models extend the lifespan of existing hardware, minimizing the need for frequent upgrades and reducing electronic waste.
  • Better AI Scalability: Lightweight models make it easier to scale AI applications across multiple devices and platforms without overloading infrastructure.
  • Smoother AI Integration for Businesses: Distilled models lower technical barriers, making it easier for businesses to integrate AI without requiring extensive computational resources.

LLM Ranking and Its Role in AI

LLM ranking is a standardized evaluation process based on key performance metrics that determines the model’s accuracy and compatibility for practical applications. As LLM models differ in size, speed, and efficiency, this standardization helps organizations choose the most suitable model for their specific needs.

You can compare LLM ranking to choosing the best restaurant in town based on different factors like food quality, service, price, and ambiance, even though the restaurants may serve different cuisines.

This ranking process is particularly important when evaluating distilled LLMs, as it helps measure how well they retain the capabilities of their larger counterparts while offering improvements in efficiency, speed, and sustainability.

Criteria for LLM Ranking: AI Performance Benchmarking

Several metrics are used to evaluate and compare LLMs. Each metric highlights a specific aspect of the model’s performance.

Here are some crucial metrics and their role in the LLM ranking process:

  • Accuracy: Measures how well the model generates correct outputs.
  • Latency: Refers to the time it takes a model to generate an output. The latency metric is generally measured in tokens per second (TPS).
  • Memory Efficiency: Indicates how much RAM (Random Access Memory) and GPU (Graphics Processing Unit) power is required to run the model smoothly.
  • Cost: Describes the computational requirements and the associated costs needed to train and run the model.
  • Robustness: Evaluates the model’s ability to handle unexpected inputs or novel scenarios.
  • Generalization: Measures the model's performance on unseen or new data.
  • Bias and Fairness: Assesses the model's capacity to produce unbiased and fair outputs.

Industry Use Cases for Distilled LLMs

Distilled LLMs are used in various applications across different sectors. Here’s a quick glimpse of where they are being used commonly:

  • Education: Distilled LLMs enable AI-driven tutoring, content summarization, and language learning on low-power devices like smartphones and tablets, making personalized education more widely accessible.
  • Media and Marketing: Lightweight LLMs can automate content creation, social media monitoring, and SEO optimization, helping businesses streamline copywriting, trend analysis, and ad personalization with minimal computing resources.
  • Research & Academia: Smaller LLMs speed up literature reviews, data analysis, and AI-assisted programming, allowing researchers to process large datasets efficiently without heavy cloud dependencies.
  • Cybersecurity: Organizations can enhance threat detection, phishing prevention, and fraud analysis by integrating lightweight AI models into real-time security systems for faster, low-resource risk assessments.

A Case Study of a Distilled LLM in the Biomedical Industry

Now that we’ve looked at some general applications, let’s dive into a case study to get better insights into how a distilled LLM can be implemented into a practical AI solution.

Extracting biomedical information is crucial in healthcare and pharmaceutical research. It helps identify important insights, such as drug interactions, disease patterns, and treatment outcomes. However, this process can be slow and requires significant computational resources.

For example, in adverse drug events (ADEs) - situations where medications cause unexpected negative effects - large language models (LLMs) like GPT-3.5 Turbo and GPT-4 can analyze vast amounts of medical data to detect patterns and potential risks. These models perform well because they can process diverse datasets, including research papers, clinical trial reports, and patient records.

Despite their performance, these LLMs require a lot of computing power, making them expensive and difficult to deploy in real-world medical settings. However, distilled models can improve biomedical knowledge extraction.

In this case, a research team used GPT-3.5 as a teacher model and trained a student model based on PubMedBERT. Using self-supervised learning, they fine-tuned the student model to perform ADE extraction as accurately as high-performance LLMs.

The distilled PubMedBERT model, despite being over 1,000 times smaller than GPT-3.5, outperformed GPT-3.5 in standard ADE extraction evaluations​. This success highlights the impact of model distillation in making advanced AI systems more efficient, accessible, and practical for specialized, resource-constrained domains like healthcare and pharmaceutical research​.

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The Framework Used to Create a Distilled PubMedBERT Model (Source)

Future of LLM Distillation

Looking ahead, emerging trends such as hybrid distillation, synthetic data training, and federated learning are expected to redefine LLM deployment and accessibility. Here’s a closer look at these ideas:

  • Hybrid distillation: It enhances performance by combining multiple techniques, such as feature-based and attention-based distillation, to retain more knowledge from the teacher model.
  • Synthetic data training: It refers to the process of using generative AI to create artificial data to train AI models, especially in areas where real-world data is scarce or difficult to obtain.
  • Federated learning: It enables decentralized model training that helps AI models to learn from multiple devices without sharing the raw data.

If you're thinking about using LLMs or distilled LLMs in your business, having the right expertise can make all the difference, and you’re at the right place. At Objectways, we can help you streamline processes, improve efficiency, and tailor AI to your unique needs.

LLM Distillation is the Gateway to Accessible LLMs

LLM distillation is a game-changer for making large language models more practical and accessible. Transferring knowledge from large, resource-heavy models to smaller, more efficient ones helps overcome challenges like high computational costs, latency, and deployment in real-world applications. As AI advances, new distillation techniques will continue to push the boundaries of efficiency and accessibility.

At Objectways, we specialize in developing customizable AI models with expert data labeling. Book a call with our team today and see how we can build smarter, more efficient AI solutions together.

Frequently Asked Questions

  • How does the LLM model work?
  • LLMs (Large Language Models) use deep learning algorithms to analyze large volumes of text datasets and learn patterns and relationships between words. They generate text responses by predicting the next word in a sequence based on the input prompts.
  • What is the difference between model distillation and fine-tuning?
  • Model distillation is the process of transferring knowledge from a large model to a smaller model. In contrast, fine-tuning refers to training a model with a task-specific dataset and refining its existing knowledge.
  • What is the difference between GPT and LLM?
  • GPT (Generative Pre-trained Transformer) is a specific type of LLM (Large Language Model) developed by OpenAI, while LLM is a broader term for any AI model trained on vast text data for language processing.
  • Which LLM leaderboard is best?
  • The best LLM leaderboard depends on your needs. HELM (Holistic Evaluation of Language Models) and the Hugging Face Open LLM Leaderboard are widely used for benchmarking, while Stanford's AlpacaEval and LMSYS Chatbot Arena focus on real-world performance comparisons.

About the Author

Author

Abirami Vina, Starting her career as a computer vision engineer, Abirami Vina built a strong foundation in Vision AI and machine learning. Today, she channels her technical expertise into crafting high-quality, technical content for AI-focused companies as the Founder and Chief Writer at Scribe of AI. Driven by a passion for making AI advancements both understandable and engaging, Abirami helps people see how AI can reinvent industries, solve complex challenges, and shape the future. Her work bridges the gap between cutting-edge technology and real-world impact, inspiring audiences to explore the transformative potential of AI.