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Q23IntermediateConcept

How do you decide between prompting, RAG, PEFT (LoRA), and full fine-tuning?

30-second answerSay your answer out loud first, then reveal.
ApproachUse whenData neededCostUpdate speed
Prompting / few-shotTask is clear; strong base model0–20 examplesLowestInstant
RAGNeeds specific / private / fresh knowledgeDocumentsLow–mediumRe-index
LoRA / PEFTConsistent format, tone, classification, domain jargon, tool-calling style; distilling into a small model~500–50K examplesMediumHours
Full fine-tuningLarge shift (new language/domain), max quality, owning a model100K+ examplesHighDays
Continued pretrainingLots of raw unlabelled domain text (e.g. legal corpus)Billions of tokensHighestDays–weeks

Signals that fine-tuning is worth it

  • The prompt has become huge (thousands of tokens of instructions and examples) and expensive on every call.
  • Output format consistency failures persist despite good prompting.
  • Latency or cost demands a smaller model that must match a bigger one on a narrow task.
  • You have high-quality labelled data and a reliable eval.

Signals it isn't

  • The problem is factual knowledge (use RAG).
  • The data is small, noisy or changing weekly.
  • You can't evaluate the result.

Slow is fine. Stopping is the only problem.