RAG vs Fine-Tuning

When to use RAG, when to fine-tune, and when to combine both — a practical decision framework.

What You Will Learn

• RAG best for: proprietary docs, frequently updated knowledge, auditability
• Fine-tuning best for: consistent style/format, domain vocabulary, behaviour change
• When to combine: fine-tune for style, RAG for knowledge
• Cost comparison: RAG inference cost vs fine-tuning training cost
• Decision framework: 5 questions to determine the right approach