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A Small Language Model (SLM) is a machine learning algorithm that can process and generate human language, but uses a smaller dataset and fewer parameters than a Large Language Model (LLM). SLMs are more efficient, lighter, and can work on simpler hardware than LLMs. They can be trained faster and customized for specific tasks, making them ideal for businesses. SLMs are also more reliable, with fewer issues with bias, toxicity, and accuracy.