RAG wins when facts change fast; fine-tuning wins for stable style and domain phrasing—often you need both with clear boundaries. Decide per surface based on update cadence and liability.
Executive snapshot
RAG vs. Fine-Tuning for Vertical AI Products
Systems & logicML strategy
The move
Teams debate religions instead of release economics and data rights.
The friction
Fine-tuned models stale quickly in retail catalogs; naive RAG leaks uncited claims.
The product verdict
Hybridize: RAG for truth, light tuning for tone; enforce citation and refresh policies.
Field note · Strategic dispatch · /dispatch/rag-vs-fine-tuning-vertical-ai-products