Answer-Conditioned Chain-of-Thought Distillation for Few-Shot Industrial Vision with Small VLMs
Deploying AI-based visual inspection in manufacturing is hard because requirements change often, new defect types appear, and large labeled datasets are rarely available. We propose answer-conditioned chain-of-thought (CoT) distillation for rapidly adapting small vision-language models (VLMs) to new industrial tasks using minimal labeled data. A frontier VLM receives each training image along with its correct label and generates a justified visual explanation. A 3B-parameter model is then fine-tuned on these reasoning-augmented examples via LoRA. By conditioning on correct answers, we ensure all training reasoning is directed toward the correct conclusion, which is critical because frontier models score as low as 24.1% on our hardest task. We validate on four industrial classification tasks spanning three image modalities using only 18 to 30 labeled images per task. Across 4 seeds per task (32 training runs), our method outperforms direct fine-tuning on all 16 seed-task combinations, with mean improvements of +1.7 to +4.4 percentage points. A controlled equal-budget experiment confirms the improvement comes from reasoning quality, not additional training steps. An unconditioned baseline demonstrates that with out answer-conditioning, wrong reasoning degrades performance by 17.8 percentage points. On weld radiograph classification, the fine-tuned 3B model outperforms GPT-4.1 by 10.0pp using just 24 training images.