Level 3. Fine-Tuning
Fine-tuning is a technique where a pre-trained model is adjusted to perform a new task. You're teaching the LLM how to use the knowledge that it already has to do something new.
It's basically prompt engineering with API, on steroids.
When to use it
| Move on to this level if: |
- You have large quantities of domain-specific data, and prompt engineering with API didn't yield satisfactory results
- You have the budget — when your training data gets large enough to demand fine-tuning, the cost can add up quickly (we’ll get to that later)
|
Why it matters
Working with a fine-tuned model is like having a super expert with decades of experience in your industry.
All the knowledge is built inside their minds - they don’t need to do research or find stuff in the inventory system (vector database).
You can fine-tune an LLM to do very specific tasks in your industry niche.
| Examples |
| Email spam detection |
Customer support chatbots |
| Document summarization |
Social media monitoring |
| Fake news detection |
Resume screening |
| Legal contract analysis |
Content moderation |
| Stock market analysis |
E-commerce product description |
| Language translation |
Virtual assistants |
| Personalized education |
Artificial creativity |
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Cost
In most business use cases, fine-tuning an LLM would cost anywhere from $50k-$300k. The actual cost of fine-tuning could be ~$1k, but there are many other associated costs.
Cleaning and annotating your data can run in the low thousands to $100k+. The same price range applies to integrating the model into your existing ecosystem.
If you want real time insights without compromising quality, finding the best model fit and subsequent optimizations also add to the price.
Don’t forget that you need to employ machine learning engineers to test, evaluate, and repeat the process until it works properly. For complex cases, it could take them six months to a year. These engineers are typically paid over $250k annually -- you do the math.
You can save some money by using open source models. Hugging Face is an AI community with open-source tools, resources, and pre-trained models to help you fine-tune a model for your specific task.