Originally published on software-engineer-blog.com.

The single most expensive misconception in applied AI right now is that fine-tuning teaches a model your documents. It doesn't — and entire GPU budgets get torched on this one mistake. The real split is clean, but almost nobody frames it this way: knowledge versus behaviour.

Mental model: RAG is a library you hand the model at query time; fine-tuning is teaching the model a writing style.

The confusion

You have a set of internal documents. You want the model to answer questions about them. Two paths show up: