Local LLMs Instead of All-Rounders: Why Lean AI Models Are the Future of Process Automation
Local LLMs for process automation – how lean AI models work more efficiently and what SLIMDOC has to do with it.
Every day, millions of documents end up in the systems of banks, insurance companies, and government agencies: invoices, contracts, damage reports, forms. Many of them are still reviewed manually – an enormous factor in terms of time and cost.
Artificial intelligence can change that. But the more powerful AI systems become, the larger, more expensive, and more resource-intensive they also become. This raises a crucial question: Do we really need an AI system that can do everything – or is one that can handle our requests really well enough?
This is precisely the task that the SLIMDOC research project – a collaboration between Insiders and RheinMain University of Applied Sciences – is dedicated to.
AI is becoming more powerful – and more expensive
Modern AI language models such as GPT and similar systems are impressively versatile. They write texts, answer complex questions, translate languages, and solve programming tasks. But this versatility comes at a price: the models are getting bigger every month, and operating them requires enormous amounts of computing power and energy – and therefore money.
For companies that want to use AI for clearly defined tasks – such as automatically reading an invoice – an obvious question arises: Why should a model that processes documents also know how to cook pasta?
It doesn’t need to. But that’s precisely the problem: today, large general-purpose models are used that are hardly economical to operate locally, or small specialized models that are resource-efficient but also require time-consuming training with manually annotated data.
What is SLIMDOC – and why is it special?
SLIMDOC stands for “Synergetic LIghtweight Multimodal DOCument Analysis” and is a research project at RheinMain University of Applied Sciences with a clear goal: AI models that analyze documents reliably – in a more streamlined, faster, and more sustainable way than before.
The approach: “Knowledge distillation” is used to transfer the knowledge of large language models to small, task-specific models. The result is compact language models that can only do what they need to do – without cloud dependency, without unnecessary resource consumption, and with full data protection.
Since documents rarely consist of text alone, SLIMDOC relies on multimodal analysis: text, images, and layout are evaluated together. Specifically, two use cases are planned—analysis of annual reports and plausibility checks of insurance claims—in collaboration with R+V Versicherung and Doxis.
Why we are involved
At Insiders, we have been automating document-centric business processes for more than 25 years. Whether handwritten forms, complex tables, scans, or digital PDFs, our software reads, understands, and processes all types of documents.
We have long relied on a combination of our own AI technology and large language models. And we are increasingly recognizing that the direction in which AI models are developing will sooner or later become a serious problem for practical use.
That is why we are actively involved in research and are a key practical partner in the SLIMDOC project.
FAQs
What are local LLMs and why are they worthwhile for businesses?
Local LLMs run directly on your own infrastructure – without transmitting data to external cloud services. This enhances data privacy, reduces vendor dependencies, and lowers operating costs in the long term.
What is meant by AI document analysis?
AI document analysis refers to the automated use of AI to detect, extract, and further process content from documents – from invoices and contracts to handwritten forms.
What is knowledge distillation in the AI context?
Knowledge distillation transfers the knowledge of a large model to a smaller, specialized model. This model learns only what is relevant to its specific task – making it more efficient and resource-friendly as a result.
What is multimodal document analysis?
Multimodal analysis means that AI evaluates not just text, but simultaneously images, graphics, and the layout of a document – for example in insurance files containing photos and text fields.
