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Choose Fine-Tuning or RAG

MediumGenerative AI & LLMs00:00
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Your question is Choose Fine-Tuning or RAG. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Scenario

You are scoping an LLM-powered enterprise feature and need to decide whether to adapt an existing foundation model with fine-tuning or build a Retrieval-Augmented Generation system on top of company knowledge. The customer wants better task performance, but also cares about freshness, traceability, and operational complexity.

Question

How would you decide whether an enterprise customer should fine-tune an existing foundation model or build a RAG system?