Choosing the wrong AI lever wastes time and money. Use this simple rule to pick between Prompting, RAG, and Fine‑tuning.
Quick definitions:
- Prompting = better instructions. You change the words, not the model or data.
- RAG (Retrieval‑Augmented Generation) = plug in your knowledge base. It fetches the right snippets from your docs and gives them to the model.
- Fine‑tuning = teach patterns from many examples. It improves style and consistency, not new facts.
When to use which:
- Start with Prompting for tone, format, and one‑off tasks (emails, summaries, form fills).
- Use RAG when answers depend on your private policies, SKUs, contracts, or SOPs—and those change often.
- Consider Fine‑tuning only if you have thousands of clean, labeled examples and need consistent output at scale (support macros, underwriting notes, code style).
Cost/Speed trade‑offs:
- Prompting: fastest to ship; fragile on edge cases.
- RAG: small setup (index your top 50 docs); cuts hallucinations; updates in minutes.
- Fine‑tuning: upfront time/cost; cheaper per call later; retrain as the business shifts.
Mini‑playbook (run in 14 days):
1) Pick one workflow worth $1k+/mo.
2) Build a 10‑question test set that a human can grade.
3) Baseline with Prompting; measure Correct Answer Rate and Time‑to‑Action.
4) If private info is needed or <80% correct, add RAG.
5) If style/consistency is still off and you have 1k+ examples, plan a Fine‑tune.
Operational next step: This week, do steps 1–3. Next week, ship a small RAG pilot. BaseAim can co‑pilot the triage and deliver a working workflow in 14 days.
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