Prompt Engineering vs RAG vs Finetuning: Strategic AI Customization guide
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In today’s rapidly evolving AI landscape, off-the-shelf large language models (LLMs) often fall short when faced with specialized business requirements. While these foundation models possess remarkable general capabilities, they frequently struggle with domain-specific terminology, proprietary data contexts, and unique organizational needs. This performance gap has catalyzed three powerful customization approaches: Prompt Engineering, Retrieval-Augmented Generation (RAG), and Fine-Tuning. Each method offers distinct advantages for transforming generic AI into a precision instrument for specialized tasks.