English

Fine-tuning Small Language Models as Efficient Enterprise Search Relevance Labelers

Information Retrieval 2026-01-07 v1 Artificial Intelligence Computation and Language

Abstract

In enterprise search, building high-quality datasets at scale remains a central challenge due to the difficulty of acquiring labeled data. To resolve this challenge, we propose an efficient approach to fine-tune small language models (SLMs) for accurate relevance labeling, enabling high-throughput, domain-specific labeling comparable or even better in quality to that of state-of-the-art large language models (LLMs). To overcome the lack of high-quality and accessible datasets in the enterprise domain, our method leverages on synthetic data generation. Specifically, we employ an LLM to synthesize realistic enterprise queries from a seed document, apply BM25 to retrieve hard negatives, and use a teacher LLM to assign relevance scores. The resulting dataset is then distilled into an SLM, producing a compact relevance labeler. We evaluate our approach on a high-quality benchmark consisting of 923 enterprise query-document pairs annotated by trained human annotators, and show that the distilled SLM achieves agreement with human judgments on par with or better than the teacher LLM. Furthermore, our fine-tuned labeler substantially improves throughput, achieving 17 times increase while also being 19 times more cost-effective. This approach enables scalable and cost-effective relevance labeling for enterprise-scale retrieval applications, supporting rapid offline evaluation and iteration in real-world settings.

Keywords

Cite

@article{arxiv.2601.03211,
  title  = {Fine-tuning Small Language Models as Efficient Enterprise Search Relevance Labelers},
  author = {Yue Kang and Zhuoyi Huang and Benji Schussheim and Diana Licon and Dina Atia and Shixing Cao and Jacob Danovitch and Kunho Kim and Billy Norcilien and Jonah Karpman and Mahmound Sayed and Mike Taylor and Tao Sun and Pavel Metrikov and Vipul Agarwal and Chris Quirk and Ye-Yi Wang and Nick Craswell and Irene Shaffer and Tianwei Chen and Sulaiman Vesal and Soundar Srinivasan},
  journal= {arXiv preprint arXiv:2601.03211},
  year   = {2026}
}
R2 v1 2026-07-01T08:52:57.875Z