Should SLMs be in the Driver's Seat? A Study of Local Models as Interpreters in Cloud-Written Agent Programs

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arXiv:2610.14209v1 Announce Type: new Abstract: The most accurate agents executing user-provided tasks are driven by large, cloud-hosted models, which solve them by reading the private data of the user. Agents powered by models small enough to run on edge devices keep that data local, but yield far worse results. A third option is to have cloud models write a program that devices execute: the data stays local, but as the program is written before any data is seen, it fails whenever a step depen