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hardAI Engineer (LLM & Generative AI) interview question

When would you fine-tune a smaller open-weight model instead of using a large hosted model, and how would you do it?

What the interviewer wants to hear

  • Narrow, high-volume task with clear success criteria
  • Cost, latency, privacy or on-premise requirements
  • Generate or collect high-quality training data, possibly distil from a large model
  • Parameter-efficient methods like LoRA
  • Compare on held-out evals; plan serving and maintenance

Model answer

I consider it when the task is narrow and high volume, such as classifying tickets or extracting fields, and a large model already does it well but is too expensive or slow at scale. Data privacy or on-premise rules are another strong reason. The steps: define the task and an eval set first. Collect training data from labelled history or by having the large model produce outputs that humans spot-check, which is a form of distillation; check the provider terms allow that. Clean the data carefully, since quality matters more than size. Fine-tune with a parameter-efficient method like LoRA, which is cheap and keeps the base model frozen. Compare the fine-tuned model against the large model on held-out data, including edge cases. Finally plan serving with something like vLLM, monitoring, and a process to retrain when data drifts.

Can you answer it under time pressure?

Take a timed hard round and get scored on every answer.

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