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AI Agents · Lesson

When Fine-Tuning Beats Prompting

Fine-tune for narrow tasks, custom formats, or to shrink prompts — not to teach new facts.

Prompting First, Fine-Tuning Second

Always exhaust prompting before reaching for fine-tuning:

  1. Better system prompt
  2. Few-shot examples
  3. Tool descriptions
  4. Better model
  5. Structured outputs / Pydantic
  6. RAG
  7. ... THEN fine-tuning

When Fine-Tuning Helps

  • Specific format / style — your bespoke YAML output language
  • Narrow domain — medical, legal, code reviews
  • Latency — short prompts (no few-shots) -> faster inference
  • Cost — shorter prompts -> fewer tokens billed
  • Consistent persona — character voice, brand tone

All lessons in this course

  1. When Fine-Tuning Beats Prompting
  2. Data Collection: Trajectories and Trace Replay
  3. LoRA and QLoRA for Cost-Efficient Tuning
  4. Evaluating Tuned Models vs Base
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