Towards Harnessing the Collaborative Power of Large and Small Models for Domain Tasks

Large language models (LMs) offer broad generalization capabilities but require vast amounts of data and computational resources for domain-specific tasks; small models (SMs), in contrast, are more efficient and tailored to specific domains yet lack general-purpose coverage. Taking a collaborative approach, where large and small models work synergistically, can accelerate the adaptation of LLMs to private domains and unlock new potential in AI. This survey presents a comprehensive overview of recent advances and challenges in harnessing the collaborative power of large and small models for private-domain adaptation. It specifically focuses on the unique constraints of cross-boundary environments, where models belong to distinct parties, and examines the resulting tensions among data privacy, model security, integrity, and resource limitations. By analyzing the information flow between distinct model and data stakeholders, we propose a unified taxonomy that classifies research into three primary directions: downward knowledge transfer (LM to SM), upward knowledge transfer (SM to LM), and inference-time collaboration across parties. Drawing on this taxonomy, we analyze the core challenges inherent to cross-boundary information exchange, including data-privacy, model-security, and integrity threats as well as efficiency constraints, and synthesize these into a multi-objective optimization problem that governs practical deployment. Finally, we review key open challenges inherent to such hybrid approaches and outline promising directions for future research. By offering a principled, boundary-centric view of this rapidly evolving landscape, this survey aims to serve as a structured resource for researchers and practitioners advancing privacy-aware, resource-efficient AI deployment.