Back to Blog
AI Development11 min

LLM Fine-Tuning for Business Applications

Semih Simsek

Pre-trained language models like GPT-4 are powerful, but fine-tuning can perfectly align them with your specific use case. This article explains how.

Why Fine-Tuning?

Base models are trained on general internet data. Fine-tuning adapts the model for:

Benefits of Fine-Tuning

  • Domain-specific knowledge (legal, medical, financial)
  • Company-specific terminology and style
  • Better performance on specific tasks
  • Shorter prompts needed (lower costs)
  • Consistent output format

When to Fine-Tune and When Not

Use Fine-Tuning For:

  • Specific writing style
  • Domain jargon and terminology
  • Structured output formatting
  • Consistent tone of voice
  • Proprietary knowledge

Use Prompt Engineering For:

  • General knowledge questions
  • Ad-hoc tasks
  • Experiments and prototypes
  • Frequently changing requirements
  • Low-volume usage

The Fine-Tuning Process

  1. 1

    Data Collection

    Collect 50-500 high-quality examples of inputs and expected outputs for your use case.

  2. 2

    Data Formatting

    Format data in the correct format (usually JSONL with prompt-completion pairs).

  3. 3

    Model Selection

    Choose the base model (GPT-3.5, GPT-4, Llama 2, etc) based on requirements.

  4. 4

    Training

    Upload data and start training job. This takes several hours to days depending on model size.

  5. 5

    Evaluation

    Test the fine-tuned model on a separate validation set.

  6. 6

    Deployment

    Implement the model in production and monitor performance.

Data Requirements

Quality is more important than quantity in fine-tuning:

50
Minimum
Training examples
200-500
Optimal
Examples
10x
Quality
More important than quantity

Pro Tip: Data Quality

One perfect example is more valuable than ten mediocre examples. Invest time in creating high-quality training data.

Cost-Benefit Analysis

Advanced Techniques

LoRA (Low-Rank Adaptation)

LoRA is an efficient fine-tuning method that:

  • Updates only a small portion of parameters
  • Uses 10-100x less memory
  • Trains faster
  • Can combine multiple LoRA adapters

Fine-tuning is not a one-time exercise. It's a continuous process of improvement based on real-world feedback.

Semih Simsek
Share this article: