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Fine-tuning or prompting? A practical decision guide

Guides5 mins read

Introduction

Most teams reach for prompting first, and they should. It's fast, cheap to change and easy to review. But prompts hit a ceiling when a task needs a consistent format, specialised vocabulary or behaviour that's hard to describe in words.

Signals you've outgrown prompting

Your prompt has grown past a page and still misses edge cases. Outputs vary run to run on identical inputs. You're paying for long contexts just to restate the same instructions.

If two of those are true, a small supervised fine-tune on a few hundred good examples usually beats another round of prompt edits.

A simple test

Measure before you train

Build an evaluation set of 50–100 real cases with known good answers. Score your best prompt against it, then score a fine-tuned model. Decide on the numbers, not the anecdotes.

Build frontier models and agents that learn from experience.

Model training

Introduction

General-purpose models are remarkable, but they don't know your contracts, your claims rules or the shorthand your engineers use. The gap between a demo and a dependable system is almost always domain knowledge. Learning from experience closes that gap. Instead of prompting harder, you let a model practise on your tasks, score the results against what good looks like, and keep the improvements.

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