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Enhancing Generative AI [GenAI] models: Fine Tuning vs. RAG

Enhancing Generative AI [GenAI] models: Fine Tuning vs. RAG

Niket Girdhar / January 2, 2025

Consumption of GenAI models like Large Language Models [LLMs] is growing exponentially, but there are still some critical challenges to address:

Model Enhancement: Continuous improving LLMs to meet growing demands and up-to-date knowledge of the trends.

Generalisation vs. Specialisation: Current models are very general-purpose and often require further training of specific use cases

To overcome these challenges there are several approaches but two techniques stand out, Fine Tuning and RAG


Fine Tuning:

Fine-tuning involves adapting a pre-trained model to a specific domain or task using specialised data so as to tailor it to perform better in certain areas.

Strengths:

  • Provides more control over model’s behaviour and output
  • Domain Specific models obtained
  • Enhances speed and reduces costs by embedding knowledge directly into the model

Limitations:

  • Doesn’t adapt easily to real-time data
  • Requires a large, labelled dataset for effective Fine Tuning
  • Requires extensive computational resources for larger model sizes

Retrieval Augmented Generation [RAG]:

RAG integrates external up-to-date information into the generative process. It retrieves relevant data based on the user input [input query], augments the prompt with the retrieved data and then generates the final response.

Strengths:

  • Ideal for dynamic data sources like databases
  • Keeps the model current with real-time data
  • Reduces hallucination errors by also outputting the source of the output
  • More accurate and context-aware outputs generated

Limitations:

  • It becomes very complex to maintain the data flow and integration
  • Adjustment of model to work efficiently within the contextual window
  • Can introduce latency due to external data fetching

When Not to Rely on Fine-Tuning or RAG

While powerful, Fine-Tuning and RAG aren’t always the best choice:

  • Few-Shot & Zero-Shot Learning: Great for adapting to new tasks without extensive training data
  • Active Learning: Ideal when labeled data is scarce or expensive.
  • Multimodal Models: Perfect for applications requiring multiple types of data (e.g., text, image, audio)
  • Model Compression: Critical for low-latency or resource-constrained environments (mobile apps, edge devices)

The Right Approach Depends on Your Use Case

  • Fine-Tuning: Best for specialised, stable tasks with sufficient labeled data.
  • RAG: Perfect for applications needing real-time, up-to-date information and source transparency
  • Other Techniques: Consider few-shot learning, active learning, or model distillation based on your unique needs

Often, combining methods yields the best results — ensuring a robust, efficient, and adaptive AI system