As asked
A stakeholder wants to improve the model's performance on a specialized task. How do you decide between prompt engineering with few-shot examples versus fine-tuning the model?
Sample answer outline
Key factors: prompt engineering is faster to iterate, has no training cost, and requires no labeled data, but is limited by context length and is less sample-efficient at capturing format or style. Fine-tuning using parameter-efficient methods (LoRA, QLoRA, prefix tuning) can work with as few as a few dozen to a few hundred examples, far fewer than classic full fine-tuning required. Full fine-tuning may need thousands. Fine-tuning wins when: consistent output format is critical, the task behavior is hard to express in words but easy to show in examples, or you need to reduce inference latency by offloading instructions to weights. Prompt engineering wins for rapid iteration, low-resource tasks, and when requirements change often. The answer should also mention they are not mutually exclusive: you can fine-tune a model and still use prompt engineering on top of it.
Expect these follow-ups
- At what data scale does fine-tuning typically start to outperform few-shot prompting?