RAG vs Fine-Tuning for ERP Data: Choosing the Right LLM Strategy for Enterprise AI
Layering LLMs over sensitive ERP data requires a critical choice between Retrieval Augmented Generation (RAG) and fine-tuning, a strategic decision that impacts security, compliance, and cost. This practical guide breaks down the head-to-head trade-offs, from data freshness and hallucination risk to auditability, to help you choose the right LLM strategy. We explore why RAG is often the safer default for real-time ERP data, and how a hybrid approach delivers the strongest results.