Fine-Tuning LLMs: When to Do It and How to Do It Right

# Few-shot prompting often achieves surprisingly strong results
system_prompt = """
You are a support ticket classifier. Classify tickets into: 
billing, technical, account, feature_request, other.

Examples:
Input: "My invoice shows wrong amount"
Output: billing

Input: "App crashes when I upload PDF files"
Output: technical

Input: "How do I change my password?"
Output: account

Respond with only the category label, nothing else.
"""

# This approach may already achieve 90%+ accuracy
# without any fine-tuning

Scenario: Extracting structured JSON from medical notes
Problem: GPT-4 sometimes adds explanatory text, changes field names,
         or omits optional fields — inconsistency breaks downstream code
Solution: Fine-tune on 500 medical note → JSON pairs
Result: 100% output format compliance

Scenario: Legal document drafting firm
Problem: Model uses consumer-friendly language instead of legal terminology;
         doesn't follow jurisdiction-specific formatting conventions
Solution: Fine-tune on 2,000 firm documents with their preferred style
Result: Outputs match firm style guide without extensive prompting

Scenario: High-volume classification (1M requests/day)
Problem: Each request needs a 1,500-token system prompt with examples
         Cost: 1.5B tokens/day at $5/M = $7,500/day
Solution: Fine-tune Llama 3.1 8B to learn the task
         Deploy locally or on cheaper inference endpoint
Cost: $50/day in compute vs $7,500/day in API costs

Scenario: Mobile/edge deployment
Problem: Can't run a 70B model on device
Solution: Fine-tune a 7B model on 1,000 examples of the 70B model's outputs
          (knowledge distillation approach)
Result: 7B model performs at 70B level for the specific task

Popular combinations:
- Unsloth + Llama 3.1 8B + QLoRA: fastest, most memory-efficient
- Hugging Face TRL + any model: most flexible, best ecosystem
- OpenAI fine-tuning API: simplest if you use GPT-3.5/GPT-4o mini

Hardware requirements (QLoRA):
- 7B model fine-tuning: 12-16GB VRAM (RTX 3090, A10G, T4)
- 13B model fine-tuning: 24GB VRAM (A100 40GB, RTX 4090)
- 70B model fine-tuning: 48-80GB VRAM or multi-GPU

# Training data format (Alpaca/instruction-following style)
import json

training_examples = [
    {
        "instruction": "Classify this support ticket",
        "input": "My payment was charged twice for the same order",
        "output": "billing"
    },
    {
        "instruction": "Classify this support ticket",
        "input": "I can't log in after resetting my password",
        "output": "account"
    }
]

# Check data quality
def validate_training_data(examples):
    issues = []
    for i, ex in enumerate(examples):
        if not ex.get('instruction'):
            issues.append(f"Example {i}: missing instruction")
        if not ex.get('output'):
            issues.append(f"Example {i}: missing output")
        if len(ex.get('output', '')) == 0:
            issues.append(f"Example {i}: empty output")
    return issues

issues = validate_training_data(training_examples)
print(f"Issues found: {len(issues)}")
if issues:
    for issue in issues:
        print(f"  - {issue}")

# Save in JSONL format
with open('training_data.jsonl', 'w') as f:
    for example in training_examples:
        f.write(json.dumps(example) + '\n')

print(f"Training examples: {len(training_examples)}")

□ Consistent output format (exact same structure in every example)
□ No contradictions (two examples with same input but different output)
□ Representative distribution (covers all cases you'll see in production)
□ Edge cases included (examples with unusual inputs)
□ Held-out test set (10-20% never used in training)
□ Balanced classes (for classification tasks)
□ Quality > quantity (500 excellent >> 5,000 mediocre)

# Install
# pip install unsloth

from unsloth import FastLanguageModel
import torch
from trl import SFTTrainer
from transformers import TrainingArguments
from datasets import load_dataset

# 1. Load base model with QLoRA configuration
model, tokenizer = FastLanguageModel.from_pretrained(
    model_name = "unsloth/Meta-Llama-3.1-8B-Instruct",
    max_seq_length = 2048,
    dtype = None,           # Auto-detect: float16 or bfloat16
    load_in_4bit = True,    # QLoRA: quantize to 4-bit for memory efficiency
)

# 2. Add LoRA adapters
model = FastLanguageModel.get_peft_model(
    model,
    r = 16,                 # LoRA rank (higher = more parameters = better but slower)
    target_modules = ["q_proj", "k_proj", "v_proj", "o_proj",
                      "gate_proj", "up_proj", "down_proj"],
    lora_alpha = 16,
    lora_dropout = 0,       # 0 is optimal for LoRA
    bias = "none",
    use_gradient_checkpointing = "unsloth",
    random_state = 42,
)

print(f"Trainable parameters: {sum(p.numel() for p in model.parameters() if p.requires_grad):,}")

# 3. Load and format dataset
dataset = load_dataset("json", data_files="training_data.jsonl", split="train")

# Format into chat template
def format_prompt(example):
    return f"""### Instruction:
{example['instruction']}

### Input:
{example['input']}

### Response:
{example['output']}"""

# 4. Training configuration
trainer = SFTTrainer(
    model = model,
    tokenizer = tokenizer,
    train_dataset = dataset,
    dataset_text_field = "text",
    max_seq_length = 2048,
    args = TrainingArguments(
        output_dir = "./outputs",
        num_train_epochs = 3,
        per_device_train_batch_size = 4,
        gradient_accumulation_steps = 4,  # Effective batch size = 16
        warmup_steps = 10,
        learning_rate = 2e-4,
        fp16 = not torch.cuda.is_bf16_supported(),
        bf16 = torch.cuda.is_bf16_supported(),
        logging_steps = 10,
        optim = "adamw_8bit",
        weight_decay = 0.01,
        lr_scheduler_type = "cosine",
        seed = 42,
    ),
)

# 5. Train
trainer_stats = trainer.train()
print(f"Training time: {trainer_stats.metrics['train_runtime']:.1f}s")
print(f"Training loss: {trainer_stats.metrics['train_loss']:.4f}")

# 6. Save adapter
model.save_pretrained("my_finetuned_model")
tokenizer.save_pretrained("my_finetuned_model")

from unsloth import FastLanguageModel

# Load the fine-tuned model
model, tokenizer = FastLanguageModel.from_pretrained(
    model_name = "my_finetuned_model",
    max_seq_length = 2048,
    dtype = None,
    load_in_4bit = True,
)

# Enable fast inference
FastLanguageModel.for_inference(model)

# Generate response
def classify_ticket(ticket_text):
    prompt = f"""### Instruction:
Classify this support ticket

### Input:
{ticket_text}

### Response:
"""
    inputs = tokenizer(prompt, return_tensors="pt").to("cuda")
    
    with torch.no_grad():
        outputs = model.generate(
            **inputs,
            max_new_tokens=20,
            temperature=0.1,    # Low temperature for consistent classification
            do_sample=True,
        )
    
    response = tokenizer.decode(outputs[0], skip_special_tokens=True)
    # Extract only the response part
    category = response.split("### Response:")[-1].strip()
    return category

# Test
print(classify_ticket("My account shows duplicate charges from last week"))
# Output: billing

from openai import OpenAI
import json

client = OpenAI()

# 1. Prepare data in OpenAI format
training_data = [
    {
        "messages": [
            {"role": "system", "content": "You are a support ticket classifier."},
            {"role": "user", "content": "My payment failed twice"},
            {"role": "assistant", "content": "billing"}
        ]
    },
    # ... more examples
]

# Save as JSONL
with open('openai_training.jsonl', 'w') as f:
    for example in training_data:
        f.write(json.dumps(example) + '\n')

# 2. Upload training file
with open("openai_training.jsonl", "rb") as f:
    response = client.files.create(file=f, purpose="fine-tune")
file_id = response.id
print(f"File uploaded: {file_id}")

# 3. Create fine-tuning job
job = client.fine_tuning.jobs.create(
    training_file=file_id,
    model="gpt-4o-mini-2024-07-18",  # Cheapest, fastest to fine-tune
    hyperparameters={"n_epochs": 3}
)
print(f"Fine-tuning job: {job.id}")

# 4. Check status
import time
while True:
    status = client.fine_tuning.jobs.retrieve(job.id)
    print(f"Status: {status.status}")
    if status.status in ["succeeded", "failed"]:
        break
    time.sleep(30)

if status.status == "succeeded":
    fine_tuned_model_id = status.fine_tuned_model
    print(f"Fine-tuned model: {fine_tuned_model_id}")

import json
from openai import OpenAI

def evaluate_model(model_id, test_data, client):
    """Compare fine-tuned model vs base model on test set"""
    results = {
        'fine_tuned': {'correct': 0, 'total': 0},
        'base': {'correct': 0, 'total': 0}
    }
    
    for example in test_data:
        question = example['input']
        ground_truth = example['output']
        
        for model_name in ['fine_tuned', 'base']:
            model = model_id if model_name == 'fine_tuned' else 'gpt-4o-mini'
            
            response = client.chat.completions.create(
                model=model,
                messages=[
                    {"role": "system", "content": "Classify support tickets."},
                    {"role": "user", "content": question}
                ],
                max_tokens=10,
                temperature=0
            )
            
            prediction = response.choices[0].message.content.strip()
            results[model_name]['total'] += 1
            if prediction.lower() == ground_truth.lower():
                results[model_name]['correct'] += 1
    
    for model_name, r in results.items():
        accuracy = r['correct'] / r['total']
        print(f"{model_name}: {accuracy:.1%} ({r['correct']}/{r['total']})")

evaluate_model(fine_tuned_model_id, test_data, client)

OpenAI fine-tuning (gpt-4o-mini):
- Training: $0.003/1K tokens
- 1,000 examples × 300 tokens avg × 3 epochs = 900K tokens = $2.70
- Inference: $0.30/1M input + $1.20/1M output (same price as regular)

Self-hosted QLoRA (Llama 3.1 8B):
- Cloud GPU for training: ~$1-3/hour (A10G or A100)
- 1,000 examples × 3 epochs: ~1-2 hours = $2-6
- Inference: fixed server cost (much cheaper at scale)

Time requirements:
- 100-500 examples: 30-60 min fine-tuning
- 1,000-5,000 examples: 1-4 hours
- 10,000+ examples: 4-12+ hours