Domain Specific Specialization in Low-Resource Settings: The Efficacy of Offline Response-Based Knowledge Distillation in Large Language Models

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Main Authors: Aslan, Erdem, Erdoğmuş, Pakize
Format: Preprint
Published: 2026
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author Aslan, Erdem
Erdoğmuş, Pakize
author_facet Aslan, Erdem
Erdoğmuş, Pakize
contents Large Language Models (LLMs) excel in general tasks but often struggle with hallucinations when handling domain-specific or institutional knowledge absent from their pre-training. We present an offline response-based knowledge distillation method that develops high-accuracy specialized assistants under constrained hardware resources. We evaluate three distinct data strategies: general domain adaptation (15,000 lines), unstructured knowledge injection (2,000 lines), and a context-aware synthetic dataset (500 lines) generated by a teacher model. To minimize computational costs, we utilize the Unsloth library to optimize the Qwen-2.5-7B student model, reducing NVIDIA A100 GPU memory requirements from 40 GB to 16 GB. Experimental results demonstrate that while larger unstructured datasets suffer from persistent hallucinations, the 500-line context-aware dataset achieves a 96.7% accuracy rate and robust rejection capability. These findings validate the LIMA hypothesis, showing that data quality and structural alignment are more critical than quantity for domain adaptation in low-resource settings.
format Preprint
id arxiv_https___arxiv_org_abs_2601_16219
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Domain Specific Specialization in Low-Resource Settings: The Efficacy of Offline Response-Based Knowledge Distillation in Large Language Models
Aslan, Erdem
Erdoğmuş, Pakize
Computation and Language
Artificial Intelligence
Large Language Models (LLMs) excel in general tasks but often struggle with hallucinations when handling domain-specific or institutional knowledge absent from their pre-training. We present an offline response-based knowledge distillation method that develops high-accuracy specialized assistants under constrained hardware resources. We evaluate three distinct data strategies: general domain adaptation (15,000 lines), unstructured knowledge injection (2,000 lines), and a context-aware synthetic dataset (500 lines) generated by a teacher model. To minimize computational costs, we utilize the Unsloth library to optimize the Qwen-2.5-7B student model, reducing NVIDIA A100 GPU memory requirements from 40 GB to 16 GB. Experimental results demonstrate that while larger unstructured datasets suffer from persistent hallucinations, the 500-line context-aware dataset achieves a 96.7% accuracy rate and robust rejection capability. These findings validate the LIMA hypothesis, showing that data quality and structural alignment are more critical than quantity for domain adaptation in low-resource settings.
title Domain Specific Specialization in Low-Resource Settings: The Efficacy of Offline Response-Based Knowledge Distillation in Large Language Models
topic Computation and Language
Artificial Intelligence
url https://arxiv.org/abs/2601.16219