# Optimizing the Phi-2 Small Language Model for Real-time Chatbot Applications Using Parameter-Efficient Fine-Tuning (PEFT) with QLoRA Quantization

arXiv: https://arxiv.org/abs/2609.33927 · HTML: https://mlsanity.com/paper/2609.33927/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 15 of its 21 references that are in the map.
- First posted on arXiv 27 Sep 2026.

## Builds on (most cited first, 15 of 15)

- [BART: Denoising Sequence-to-Sequence Pre-training for Natural Language Generation, Translation, and Comprehension](https://mlsanity.com/paper/1910.13461/) (2019)
- [Parameter-Efficient Transfer Learning for NLP](https://mlsanity.com/paper/1902.00751/) (2019)
- [Prefix-Tuning: Optimizing Continuous Prompts for Generation](https://mlsanity.com/paper/2101.00190/) (2021)
- [The Power of Scale for Parameter-Efficient Prompt Tuning](https://mlsanity.com/paper/2104.08691/) (2021)
- [QLoRA: Efficient Finetuning of Quantized LLMs](https://mlsanity.com/paper/2305.14314/) (2023)
- [GPTQ: Accurate Post-Training Quantization for Generative Pre-trained Transformers](https://mlsanity.com/paper/2210.17323/) (2022)
- [Phi-3 Technical Report: A Highly Capable Language Model Locally on Your Phone](https://mlsanity.com/paper/2404.14219/) (2024)
- [BitFit: Simple Parameter-efficient Fine-tuning for Transformer-based Masked Language-models](https://mlsanity.com/paper/2106.10199/) (2021)
- [SparseGPT: Massive Language Models Can Be Accurately Pruned in One-Shot](https://mlsanity.com/paper/2301.00774/) (2023)
- [PEGASUS: Pre-training with Extracted Gap-sentences for Abstractive Summarization](https://mlsanity.com/paper/1912.08777/) (2019)
- [Teaching Machines to Read and Comprehend](https://mlsanity.com/paper/1506.03340/) (2015)
- [LLM.int8(): 8-bit Matrix Multiplication for Transformers at Scale](https://mlsanity.com/paper/2208.07339/) (2022)
- [AdapterFusion: Non-Destructive Task Composition for Transfer Learning](https://mlsanity.com/paper/2005.00247/) (2020)
- [P-Tuning v2: Prompt Tuning Can Be Comparable to Fine-tuning Universally Across Scales and Tasks](https://mlsanity.com/paper/2110.07602/) (2021)
- [Textbooks Are All You Need II: phi-1.5 technical report](https://mlsanity.com/paper/2309.05463/) (2023)

## Abstract (arXiv)

This study explores the optimization of the Phi-2 Small Language Models (SLMs) for real-time chatbot applications through Parameter-Efficient Fine-Tuning (PEFT) and Quantized Low-Rank Adaptation (QLoRA). QLoRA specifically refers to the integration of PEFT with LoRA alongside a 4-bit quantization process, aimed at enhancing computational efficiency. These models, initially designed for high performance with minimal computational overhead, are further refined to address the constraints of mobile and edge computing environments. By integrating PEFT with QLoRA, the research aims to reduce memory usage significantly while maintaining, or potentially improving, the accuracy of model responses in real-time interactions. The effectiveness of these techniques was evaluated using the ROUGE metric system, which showed notable improvements in the summarization tasks performed by the models. This approach not only confirms the feasibility of using SLMs in resource-restricted environments but also opens up new avenues for deploying advanced AI-driven applications in real-time settings. The study's findings have significant implications for the development of efficient, scalable, and accessible AI technologies, paving the way for broader adoption in various industries.