The growing prevalence of large language models (LLMs) has spurred a demand for customization to suit specific tasks and domains. As I’ve noted in previous work, tailoring LLMs to unique needs can significantly enhance performance and cost-efficiency, particularly when striving for higher accuracy in specific applications.

Fine-tuning LLMs allows developers to adapt pre-trained models to their unique requirements, ultimately improving performance and cost-efficiency. With the emergence of user-friendly fine-tuning services, teams can now focus on curating high-quality datasets rather than grappling with the intricacies of fine-tuning implementation.
Two popular fine-tuning techniques, Low-Rank Adaptation (LoRA) and full fine-tuning, offer distinct approaches to adapting LLMs. LoRA is a parameter-efficient method that trains only low-rank perturbations to selected weight matrices, while full fine-tuning optimizes all model parameters. To help teams make informed decisions when using fine-tuning services, two recent studies provide valuable insights into the strengths and weaknesses of these techniques.
Key Findings from the StudiesÂ
Two recent studies, one conducted by Anyscale and another by Columbia/Databricks, offer valuable insights into the performance of LoRA and full fine-tuning across different domains and datasets. Both studies consistently found that full fine-tuning generally outperforms LoRA in terms of accuracy and sample efficiency, particularly in complex domains such as programming and mathematics. However, the performance gap between the two methods varies depending on the specific task and dataset.
Interestingly, the studies also highlight LoRA’s role as a regularizer, mitigating the “forgetting” of the source domain often observed in fine-tuning. LoRA maintains the base model’s performance on tasks outside the target domain better than full fine-tuning, demonstrating stronger regularization compared to techniques like weight decay and attention dropout. This property makes LoRA a compelling choice for applications where preserving the model’s generalizability is paramount.
LoRA preserves model generalizability by mitigating ‘forgetting’ of the source domain
The decision between LoRA and full fine-tuning is not always straightforward and depends on factors such as resource constraints, task complexity, and the desired balance between accuracy and efficiency. The studies suggest that LoRA is more suitable for instruction fine-tuning (IFT) scenarios with smaller datasets, while full fine-tuning excels in continued pretraining (CPT) with large datasets. Teams must carefully evaluate their specific requirements and prioritize the most effective approach accordingly.
Recommendations for Teams Using Fine-Tuning ServicesÂ
Based on the findings of the two studies, teams leveraging fine-tuning services to adapt LLMs can benefit from the following recommendations:
- Prioritize full fine-tuning for applications demanding the highest accuracy, particularly in complex domains like programming and mathematics. Full fine-tuning’s superior performance and sample efficiency make it the optimal choice when accuracy is paramount.
- Consider LoRA for applications where you need the model to perform well on multiple related tasks (e.g., summarizing text and translating languages). LoRA’s regularization properties help prevent overfitting and reduce the “forgetting” of the source domain, ensuring the model remains versatile.
- Focus on using LoRA for instruction fine-tuning (IFT) scenarios with relatively small datasets. LoRA performs better with smaller, task-specific datasets compared to large continued pretraining (CPT) datasets.
- Consider using LoRA when you’re fine-tuning the model for a specific task using a relatively small dataset of examples. LoRA performs better in these scenarios compared to situations where you’re using a large dataset to further train the model on a broader range of tasks.

For teams deeply involved in implementing fine-tuning, the following additional considerations can help optimize LoRA performance:
- Optimize hyperparameters, particularly learning rates, for maximum performance. LoRA is highly sensitive to learning rates, and finding the optimal rate through experimentation is crucial for stable and effective training.
- Target all relevant modules (attention, MLP) with LoRA for optimal performance. Comprehensive adaptation of the model yields better results compared to targeting only specific modules.
- Choose the rank in LoRA based on available memory, with a rank of 16 serving as a good starting point. The choice of rank involves a trade-off between performance and memory requirements, and teams should consider their hardware limitations and desired accuracy.
- Train LoRA models for a sufficient number of epochs, with at least four epochs recommended for optimal performance. While LoRA’s performance improves with longer training, it remains less sample-efficient than full fine-tuning.
Closing ThoughtsÂ
The insights from the Anyscale and Columbia/Databricks studies provide valuable guidance for teams navigating the complex landscape of fine-tuning LLMs. By understanding the strengths and limitations of LoRA and full fine-tuning, developers can make informed decisions when using fine-tuning services to adapt models to their specific needs. This understanding allows developers to carefully consider factors such as task complexity, resource constraints, and the desired balance between accuracy and efficiency, ultimately enabling them to harness the power of fine-tuning to build highly effective and customized AI applications.
Moving forward, further research into the impact of model size, task complexity, and domain shift on the effectiveness of fine-tuning methods will provide even more granular insights. As fine-tuning services continue to improve and new techniques emerge, teams will have an ever-expanding toolkit to adapt LLMs to their unique requirements, driving innovation and unlocking new possibilities.
The landscape of model fine-tuning is being reshaped by two exciting trends: multi-modal foundation models and the rise of agents and Agentic AI. Multi-modal models that can process text, images, audio and other data types open up new frontiers for fine-tuning. Meanwhile, the emergence of Agentic AI, where AI systems autonomously pursue goals, will demand sophisticated fine-tuning approaches to ensure these agents can effectively learn and adapt in complex environments. Integrating fine-tuning techniques with these trends promises to unlock even greater potential for advanced AI systems.
Recommended Reading
- Anyscale: Fine-Tuning LLMs: LoRA or Full-Parameter? An in-depth Analysis with Llama 2
- Columbia University & Databricks: LoRA Learns Less and Forgets Less
- The LLM Triad: Tune, Prompt, Reward
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