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AI Street

The Rise of Small Models in Enterprise AI

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Matt Robinson
Nov 06, 2025
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Hey, it’s Matt. This week on AI Street:

🤖 Small AI adds up to Big Impact

🚶How word choice can lead AI astray 

🎙️ Interview w/ Deep Analysis Founder

ADOPTION

Small AI, Big Impact

AI doesn’t really understand cause and effect.

If someone can show me evidence that AI actually thinks using formal or deductive logic, I’ll bow to our new machine overlords. Until then, it’s essentially sophisticated pattern matching --which is still useful!

For all the headlines that AI is going to take everyone’s jobs, not being able to reason logically seems like a serious limitation. AI excels at tasks that don’t really require thinking — rote, repetitive, boring tasks. And for those, you don’t need a massive model. A small model will do.

(Side note: A model’s “size” refers to how many parameters it has — essentially, the number of connections in the network. The biggest models have billions or even trillions, while smaller ones have just thousands. There’s no universal cutoff of what makes a model “large” or “…

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