Next Layer: Fine-Tuning
Where RAG retrieves knowledge dynamically, fine-tuning actually modifies the model’s brain — it teaches the LLM new patterns or behaviors by updating its internal weights.
⚙️ How Fine-Tuning Works
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Start with a pretrained model (e.g., GPT-3.5, Llama-3, Mistral).
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Prepare training data — examples of how you want the model to behave:
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Inputs → desired outputs
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e.g., “User story → corresponding UAT test case”
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Train the model on these examples (using supervised learning or reinforcement learning).
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The model’s weights are adjusted, internalizing the new style, tone, or domain language.
After fine-tuning, the model natively performs the desired task without needing the examples fed each time.
⚖️ RAG vs Fine-Tuning: Clear Comparison
| Aspect | RAG (Retrieval-Augmented Generation) | Fine-Tuning |
|---|---|---|
| Mechanism | Adds external info at runtime | Alters model weights via training |
| When Used | When data changes often or is large | When you need consistent behavior or reasoning style |
| Data Type | Documents, databases, APIs | Labeled prompt–response pairs |
| Cost | Low (no retraining) | High (GPU time, expertise, re-training) |
| Freshness | Instantly updatable | Requires re-training to update |
| Control | You control retrieved sources | You control reasoning patterns |
| Example Use | Ask questions about new policies | Teach model to write test cases in your company’s format |
| Analogy | Reading from a manual before answering | Rewriting the brain to remember the manual forever |
🧩 Combining Both: RAG + Fine-Tuning = Domain-Native AI
The real power comes when both are used together:
| Layer | Role |
|---|---|
| Fine-Tuning | Teaches the model how to think — e.g., how to structure a UAT test case, how to handle defects, your tone/style. |
| RAG | Gives it the latest knowledge — e.g., current epics, Jira stories, or Salesforce objects from your live data. |
So the LLM becomes:
A fine-tuned specialist with a live retrieval memory.
🧬 Example: In Your AGL Salesforce / UAT Context
| Step | Example |
|---|---|
| Fine-tuning | You fine-tune the LLM on 1,000 existing UAT test cases and business rules. Now it understands your structure and tone. |
| RAG layer | You connect it to Jira and Confluence via embeddings, so when you ask, “Generate UAT test cases for Drop-3 Call Centre Epics,” it retrieves the latest epics and acceptance criteria. |
| Result | You get context-aware, properly formatted, accurate UAT cases consistent with AGL’s standards. |
That’s enterprise-grade augmentation — the model both knows how to think like your testers and knows what’s new from your systems.
🧠 Summary Table
| Capability | Base LLM | + RAG | + Fine-Tuning | + Both |
|---|---|---|---|---|
| General reasoning | ✅ | ✅ | ✅ | ✅ |
| Access to private or new data | ❌ | ✅ | ⚠ (only if baked in) | ✅ |
| Domain vocabulary & formats | ⚠ | ⚠ | ✅ | ✅ |
| Updatable knowledge | ❌ | ✅ | ❌ | ✅ |
| Low hallucination | ⚠ | ✅ | ✅ | ✅✅ |
| Cost to build | – | Low | Medium–High | Medium |
🚀 The Strategic Rule of Thumb
| If your problem is... | Then use... |
|---|---|
| “Model doesn’t know the latest information.” | ✅ RAG |
| “Model doesn’t behave or write like us.” | ✅ Fine-Tuning |
| “Model doesn’t know and doesn’t behave correctly.” | ✅ Both |
That’s the progressive architecture:
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RAG extends knowledge.
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Fine-tuning embeds behavior.
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Together, they form the foundation for enterprise-grade AI systems.