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"Prompting, RAG or fine-tuning? A plain-English guide"

Vendors throw these three words around, often with the price tag attached to the wrong one. Here is what prompting, RAG and fine-tuning actually are, what each costs, and why most businesses never need the expensive one.

AI basics4 min read1 September 2026by Ahmed
"Prompting, RAG or fine-tuning? A plain-English guide"

Sooner or later, every founder planning an AI feature meets three options: prompting, RAG and fine-tuning. Vendors throw the words around, often in the same breath, and often with a price tag attached to the wrong one. Here is what each actually is, what each costs, and which problems each one fits — in plain terms.

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