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When To Use RAG vs Fine-Tuning

June 15, 2024 | AI

Choosing between Retrieval-Augmented Generation (RAG) and fine-tuning depends on the specific requirements, resources, and goals of your application. Here are scenarios when each approach is more sensible.

When should you use RAG?

Use RAG when you’re dealing with dynamic information needs – when the application requires access to the latest information or frequently updated content, such as news, scientific research, or real-time event updates.

A good example would be a chatbot providing customer support with the most current product information or a Q&A system for breaking news.

Use RAG when you have large knowledge base – when the application must draw from a vast and diverse knowledge base that is too extensive to be encapsulated in a single model.

A good example would be a legal advisor system retrieving specific laws or precedents from a comprehensive legal database.

Use RAG when you need to reduce model size – when your resources are constrained, and it’s beneficial to keep the generative model small by offloading detailed information retrieval to external sources.
A good example would be a mobile or edge devices with limited computational power needing to provide detailed answers.

Use RAG when you need contextual relevance – when you need to be sure the generated responses are highly contextual and relevant by utilizing specific documents or pieces of information.

A good example would be a personalized recommendation system that fetches user-specific data for tailored suggestions.

When should you use fine-tuning?

Use fine-tuning when you need specialized task performance – when the application requires highly accurate performance on a specific task, such as sentiment analysis, machine translation, or domain-specific text generation.

A good example would be a medical diagnosis assistant fine-tuned on medical literature to provide precise health-related advice.

Use fine-tuning when you need high-quality and task-specific data – when you have access to a large, high-quality dataset that is representative of the specific task or domain.

A good example would be a customer service bot trained on a large dataset of historical customer interactions to handle support queries efficiently.

Use fine-tuning when you need simplicity in implementation – when the goal is to have a straightforward implementation without the complexity of integrating retrieval systems.

A good example would be a document classification system where the task is well-defined and does not require external data retrieval.

Use fine-tuning when you need stable information environment – when the domain or task does not frequently change, making periodic retraining manageable and effective.

A good example would be an internal tool for employee onboarding that does not need real-time updates but must be accurate and reliable.

In conclusion
When choosing between Retrieval-Augmented Generation (RAG) and fine-tuning, your decision should depend on the specific requirements, resources, and goals of your application.
Use RAG when your application needs up-to-date information, can benefit from reduced model size, and requires high contextual relevance with access to a vast and dynamic knowledge base. Use Fine-Tuning when your application demands specialized task performance, has access to high-quality and specific datasets, and operates in a stable information environment where the task is well-defined.
By assessing these factors, you can determine the most sensible approach to optimize your language model for your specific use case.