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Choosing between RAG and fine-tuning for your AI project can save you thousands of dollars. In this video, I break down exactly when to use RAG (Retrieval Augmented Generation) vs fine-tuning for large language models in 2025, with real examples and a simple decision framework. As an AI research engineer with a PhD in computer science, I've helped countless clients decide between these two techniques. The wrong choice can waste money and time, so let me show you how to make the right decision for your specific use case. What You'll Learn: ✅ What RAG actually is and how it works ✅ What fine-tuning does to AI models ✅ Real cost comparison between RAG and fine-tuning ✅ When to use RAG (changing data, citations, prototypes) ✅ When to use fine-tuning (consistent style, specialized reasoning) ✅ Simple decision framework you can use immediately TIMESTAMPS: 0:00 - Introduction 1:30 - What is RAG? 4:45 - What is Fine-Tuning? 7:20 - Cost Comparison 9:15 - When to Use RAG 12:30 - When to Use Fine-Tuning 16:45 - Decision Framework 18:00 - Conclusion Whether you're building chatbots, AI assistants, or automation systems, this guide will help you choose the right AI technique for your project without wasting money. 🔔 Subscribe for more AI development tutorials and best practices! Affiliate Links: ClickUp Free Tier: https://try.web.clickup.com/5reevp5myzf2 Contextual Design Book: https://amzn.to/4sE2G7U Alex Hormozi Money Models Book: https://amzn.to/49IikGT This video was made with Descript: https://descript.cello.so/lFhuVWImhJW Recorded with Sony ZVE-10: https://amzn.to/3XAVScW Monitor Benq: https://amzn.to/44fSzeS Video Editing (Opus Pro): https://www.opus.pro/?via=214676 Novita AI: https://novita.ai/?ref=nmvlogu&utm_so... Connect with me: Tiktok: RJTheComputerDoctor Instagram: RJTheComputerDoctor Music Credit Summertime Love - Lakey Inspired / lakeyinspired #RAG #FineTuning #AI #MachineLearning #LLM #ChatGPT #ArtificialIntelligence #AIEngineering #TechTutorial #LargeLanguageModels