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AIMODELRACE

Module 4 of 6 · Expert · 9 min read

Fine-tuning and distillation

When prompting is not enough: supervised fine-tuning, preference tuning, RL and distillation.

Key takeaways
  • 1Exhaust prompting and retrieval before fine-tuning.
  • 2Fine-tuning teaches format, style and narrow skills; RAG supplies knowledge.
  • 3Distillation trains a small model to imitate a large one on your task.

01Decide in this order

Each step costs more than the last, in money and maintenance.

  • Better prompts and examples.
  • Retrieval for knowledge the model lacks.
  • Fine-tuning for consistent format, tone or specialised behaviour.
  • Training from scratch: almost never.

02Kinds of tuning

Supervised fine-tuning (SFT) trains on input-output pairs. Preference tuning (such as DPO) trains on pairs of better and worse answers. Reinforcement fine-tuning optimises against a grader, useful when correct answers can be checked automatically.

Parameter-efficient methods such as LoRA adapt a small number of extra weights, making tuning cheap and swappable.

03Distillation

Generate high-quality outputs from a frontier model on your task, then fine-tune a small, fast model on them. You can often keep most of the quality at a fraction of the cost and latency.

Watch out
Check the larger model's terms of service: some restrict using outputs to train competing models.

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