L028 · Under the hood · 2 min

Fine-tuning vs prompting

Before you train your own AI, try a better prompt and your own documents; that solves most problems faster and cheaper.

01 · The idea

There are three main ways to make AI fit your needs. Prompting: give instructions and examples each time. RAG: let it look up your documents. Fine-tuning: train an existing model further on your own examples.

Fine-tuning changes the model itself. It is good for a very consistent style or format, or a narrow task done millions of times. It needs good data, money and skills, and must be redone when better models arrive.

Prompting and a good system prompt cost almost nothing and can be changed in minutes. RAG is best when the problem is missing knowledge, like prices or policies.

A simple rule: start with prompting, add RAG for knowledge, and consider fine-tuning only when those clearly fall short.

02 · Think of it like this

Prompting is giving a chef a recipe card. RAG is giving them your family cookbook. Fine-tuning is sending them to cooking school for a year.

03 · Do it now

04 · Quick check

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