In the world of AI, bigger isn’t always better. As Large Language Models (LLMs) dominate headlines with their impressive capabilities, Small Language Models (SLMs) offer a compelling alternative for many real-world applications. This talk breaks down the key factors that help developers decide when to use LLMs versus SLMs, focusing on performance, efficiency, and scalability. We’ll dive deep into Microsoft Phi-3, a cutting-edge SLM optimized for running on local devices using .NET, and show how it strikes the perfect balance between power and resource-efficiency. Learn how to harness the strengths of each model type depending on task complexity, hardware constraints, and cost considerations. With practical examples and live demos, this session equips you with the insights needed to pick the right model for your project—without sacrificing speed, flexibility, or performance.