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AI Engineering

Mar 2026

⏱ 8 min min read

RAG vs Fine-tuning: When to Use Which?

V

Nguyễn Văn Minh — CTO / AI Lead

Vareal Vietnam

When deploying AI for enterprises, one of the most critical questions is: RAG or Fine-tuning?

What is RAG?

RAG (Retrieval-Augmented Generation) combines an LLM with an external knowledge base.

RAG is like letting the LLM open the book during an exam. Fine-tuning is like having the LLM memorize the book beforehand.

When to Use RAG?

Choose RAG when data changes continuously or training budget is limited.

Conclusion

At Vareal, we typically go RAG-first — faster, more flexible, and lower risk.

🏷️ Tags

RAG

Fine-tuning

LLM

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