In plain English
It teaches form, not facts. A fine-tuned model learns your tone, your output structure, your classification conventions. It does not reliably learn your product catalogue.
That single distinction resolves most fine-tuning decisions. If the requirement is knowledge, use retrieval. If the requirement is consistent behaviour that prompting cannot achieve, consider fine-tuning.
What to know
Why it matters
Fine-tuning is chosen far more often than it is needed, usually to solve a knowledge problem it cannot solve. Trying prompting and retrieval first is cheaper and almost always sufficient.
Common mistakes
FAQs
When is fine-tuning right?
When you need a consistent format or behaviour at volume that prompting cannot reliably produce.
How many examples?
Hundreds at minimum, and quality matters more than quantity.
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