Retrieval-Augmented Generation (RAG)
AI Agents
A technique that retrieves relevant information from a chosen source and gives it to an AI model with the question, so the answer can be grounded in it.
Fine-tuning is the process of further training an existing AI model on a smaller, targeted set of examples so it more consistently adopts a specific style, format, or specialized behavior. Instead of building a model from scratch, you start with a general-purpose model and show it many examples of the inputs and outputs you want. The result is a customized version of the model that needs less instruction for that kind of work.
Also called fine tuning, model fine-tuning
A property management company receives thousands of tenant maintenance requests each month. Every reply follows one format: a category (such as plumbing or electrical), an urgency level, a short acknowledgment for the tenant, and a work-order summary for the maintenance team.
A structured-output setting keeps every reply to those four fields and approved labels, but the AI’s judgment drifts: similar leaks get different urgency levels, and its wording does not sound like experienced coordinators. The team collects past requests paired with coordinators’ replies, removes tenants’ personal details, and fine-tunes a model. Before switching over, they compare it with the prompted version on requests it has never seen.
Changing details, such as vendor contacts, stay in a knowledge base the AI looks up. Possible emergencies, such as a gas smell or flooding, still go to a person.
Large AI models are first built through pretraining: learning general patterns of language from a very large body of data. A large language model that comes out of that stage is a generalist. Most assistant models have also had further training from their provider to follow instructions and hold a conversation. Fine-tuning, as businesses use the term, is an additional, much smaller round of training that steers the model toward one kind of job. Vendors also use it to adapt a general model to one field, one route to a domain-specific LLM.
You prepare a set of examples, usually pairs of an input and the ideal output. During training, the model’s internal settings (its parameters, often called weights) are adjusted so its answers move closer to your examples. Some methods update the whole model. Others leave the original model unchanged and train a small add-on instead, which takes less computing power and storage. You may see these called parameter-efficient methods, or LoRA, a common one.
Either way, you end up with a custom version of the model, or an add-on that works with the original. That is the key difference from writing better instructions or uploading files to an AI assistant, which give the model context at the time of a request. Because the behavior is trained in, requests can usually carry much shorter instructions.
Fine-tuning is usually not the first step. Start with prompt engineering: clear instructions, a defined output format, and a few worked examples inside the prompt (often called few-shot prompting). Many AI platforms also offer structured-output settings that hold replies to a defined set of fields and allowed values. If format is the only problem, try that first.
Fine-tuning becomes worth considering when those steps fall short and the task has these traits:
Shorter prompts do not automatically mean lower costs, since custom models can be priced higher than their base models or carry hosting charges. If the goal is mainly a cheaper, faster stand-in for a large model on a narrow task, look at model distillation, which trains a smaller model on a larger model’s answers.
Fine-tuning teaches a model how to behave. It is usually a poor way to teach a model facts, especially facts that change. Prices, policies, inventory, schedules, and contact details go out of date, and updating them would mean training again. A fine-tuned model can also repeat trained-in details with confidence after they have become wrong.
For information that needs to be current or traceable to a source, use retrieval instead. Retrieval-augmented generation (RAG) looks up relevant material from a source such as a knowledge base at the moment of each request and gives it to the model to use in its answer. Put simply, RAG supplies information and fine-tuning shapes behavior. The RAG entry compares the two in detail, and many systems use both.
Fine-tuning is also a poor fit when:
Fine-tuning is a project, not a setting you switch on. Plan for four things:
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