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Dictionary

Knowledge Distillation

Training a small model to imitate the outputs of a large one, keeping most of the quality on a target task at a fraction of the cost.

2 min readupdated 2026-10-08

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In distillation, a large 'teacher' model labels many examples and a smaller 'student' model is fine-tuned on them. It works best for a narrow, well-defined task with a clear evaluation set. Check the teacher provider's terms, since some forbid using outputs to train competing models.

Training a small model to imitate the outputs of a large one, keeping most of the quality on a target task at a fraction of the cost. In distillation, a large 'teacher' model labels many examples and a smaller 'student' model is fine-tuned on them. It works best for a narrow, well-defined task with a clear evaluation set. Check the teacher provider's terms, since some forbid using outputs to train competing models. In practice: A team labels 20,000 product descriptions with a frontier model, fine-tunes a 7B model on them, and cuts categorisation cost by over 90% at similar accuracy on its eval set.
Definition
In distillation, a large 'teacher' model labels many examples and a smaller 'student' model is fine-tuned on them. It works best for a narrow, well-defined task with a clear evaluation set. Check the teacher provider's terms, since some forbid using outputs to train competing models.
Example
A team labels 20,000 product descriptions with a frontier model, fine-tunes a 7B model on them, and cuts categorisation cost by over 90% at similar accuracy on its eval set.
Related Workflows

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What is Knowledge Distillation?

In distillation, a large 'teacher' model labels many examples and a smaller 'student' model is fine-tuned on them. It works best for a narrow, well-defined task with a clear evaluation set. Check the teacher provider's terms, since some forbid using outputs to train competing models.

What is an example of Knowledge Distillation?

A team labels 20,000 product descriptions with a frontier model, fine-tunes a 7B model on them, and cuts categorisation cost by over 90% at similar accuracy on its eval set.

Why does Knowledge Distillation matter?

Training a small model to imitate the outputs of a large one, keeping most of the quality on a target task at a fraction of the cost.

What should I learn after Knowledge Distillation?

Open the related workflows and prompts further down this page: they show how this idea is applied in a real task, step by step.

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Related concepts

The vocabulary this page depends on.

  • →Small Language Model (SLM)

    A language model with roughly 1–15B parameters, small enough to run on a laptop, phone or single GPU while handling narrow tasks well.

  • →Prompt Caching

    Reusing the processed form of a repeated prompt prefix so later requests are cheaper and faster.

  • →Semantic Cache

    A cache that returns a stored LLM answer when a new question means the same thing as an earlier one, even if worded differently.

  • →Knowledge Graph

    A network of entities and the relationships between them, queryable like a map.

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Related workflows

Turn this into a repeatable process.

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Related tool stacks

The tools that run it in production.

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Related prompts

Reusable prompts for this job.

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Related use cases

How people apply it, and what came out.

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Comparisons & alternatives

Pick between the options.

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