RAG or Fine-Tuning? Choosing the Right LLM Architecture in 2025

Tech Talks Aug 12 2025
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Optimising cost, quality and governance together

We compare RAG and fine-tuning approaches in corporate LLM projects with quality, cost and risk dimensions.

The best way is often hybrid: balance quality and cost with RAG + lightweight fine-tuning.

RAG or Fine-Tuning?

Two main approaches stand out in enterprise LLM projects: Retrieval-Augmented Generation (RAG) and fine-tuning. The right choice; Privacy, timeliness, and cost depend on your goals.

Comparison Matrix

  • RAG: up-to-date content, low data copy, strong access control.
  • Fine-tuning: style/tone harmony and more consistent results in special tasks.

Hybrid Strategy

For most institutions, the best way is to use RAG+ light fine-tuning. Evaluation metrics, safety and guardrail policies should be designed together.

Outcome: the business goal → architecture match determines success.