I’d say fine-tuning still plays a crucial role in specific scenarios where prompt engineering or RAG alone fall short. Here’s when and why fine-tuning is still essential:
When Fine-Tuning Makes Sense
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Domain-Specific Language
Specialized fields like legal or medical often require tone, jargon, and structure that prompt engineering can’t fully replicate.
Example: Fine-tuning for radiology reports or legal contract generation.
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Consistency & Structure
For tasks needing strict format or repeated outputs (e.g., code, SQL), fine-tuning ensures reliability without complex prompts.
Example: Internal tools that generate structured API calls.
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Multilingual or Low-Resource Settings
Fine-tuning boosts performance in regional or underrepresented languages where base models lag.
Example: Chatbots for Indian regional languages.
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Latency & Cost at Scale
In production, fine-tuned models are faster and cheaper than prompt-heavy or RAG-based solutions.
Example: Real-time content moderation or support bots.
Prompting & RAG Still Work Well
Prompting is great for flexibility and quick prototyping. RAG is best when real-time, up-to-date knowledge is key.
Hybrid Strategy
Start with prompt + RAG, then fine-tune for scale, consistency, or domain adaptation.