01/08/2026
"We want our AI to know our internal policies."
We hear this often. The instinct is to train the model on company documents. But that's usually the wrong fix.
Here's the distinction: fine-tuning changes how a model behaves — its tone, its format, its habits. RAG (retrieval-augmented generation) changes what a model knows, by handing it the right document at the moment of the question.
Suppose a tendering team asks an AI about payment terms. Fine-tuning won't help if the policy changes next month. What they need is the current policy document, retrieved and cited, every time someone asks.
Training teaches a way of speaking. Retrieval delivers the manual, page by page, on demand.
Before you fix your AI's "behavior," ask a different question: is this really about how it answers — or about what it's missing?