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Should I use RAG or fine-tuning for my LLM application?

Use RAG to ground answers in fresh, citable knowledge. Use fine-tuning to change model behaviour, format, or skills. Most production GenAI systems need strong retrieval first; add adapters when behaviour gaps remain.

RAG

  • Knowledge stays outside weights and can be updated continuously
  • Supports citations and source-level access control
  • Fails gracefully when retrieval is empty if you design refusals
  • Cheaper iteration for document-heavy enterprise Q&A

Fine-tuning (incl. LoRA/QLoRA)

  • Encodes style, schemas, and tool-use habits into the model
  • Can reduce prompt length for repetitive behaviours
  • Requires curated datasets, eval suites, and versioning
  • Does not replace a knowledge base for changing facts

Choose RAG when

  • Documents, policies, or tickets change often
  • Auditors need evidence of sources
  • You are early and still discovering user questions

Choose Fine-tuning (incl. LoRA/QLoRA) when

  • The base model ignores required formats even with good prompts
  • You need domain voice or specialized reasoning patterns
  • You can maintain labelled examples and regression evals

VERDICT

Default to RAG with evaluation harnesses. Add LoRA/QLoRA when behavioural gaps are stable and measurable. Combine both for copilots that must sound on-brand and stay factual.

Related guides

What is retrieval-augmented generation (RAG)?

What are LoRA and QLoRA?

Related Deepskilling courses