RAG vs Fine-tuning — Which Fits Your Project | KuwaitAI

In 95% of cases — RAG.

RAG: searches your live data at each query. Edit the file → answer updates immediately.

Fine-tuning: bakes info into the model. Every update = expensive retraining.

• RAG cost: 250-600 KWD one-time + 5-25 KWD/mo ops
• Fine-tuning cost: 1,500-5,000 KWD + retraining every 3 months
• RAG cites sources: you know where answers came from
• Fine-tuning sometimes hallucinates: info is blended into the model
• RAG for changing docs: contracts, prices, policies
• Fine-tuning for style: specific tone, unique language

Our recommendation — start with RAG.

If you later need specific tone or highly specialized tasks, add fine-tuning on top. But rarely needed in Kuwaiti SMB projects.

RAG service →