Abstract
This paper investigates the effectiveness of small language models (SLMs) for agentic tasks (function/tool/API calling) with a focus on running agents on edge devices without reliance on cloud infrastructure. We evaluate SLMs using the Berkeley Function Calling Leaderboard (BFCL) framework and describe parameter-driven optimization strategies that include supervised fine-tuning (SFT), parameter-efficient fine-tuning (PEFT), reinforcement learning (RL)-based optimization, preference alignment via Direct Preference Optimization (DPO), and hybrid methods. We report results for models including TinyAgent, TinyLlama, Qwen, and xLAM across BFCL categories (simple, multiple, parallel, parallel-multiple, and relevance detection), both in live and non-live settings, and in multi-turn evaluations. We additionally detail a DPO training pipeline constructed from AgentBank data (e.g., ALFRED), including our conversion of SFT data to chosen-rejected pairs using TinyLlama responses as rejected output