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AI productstretch

How would you decide whether to use an off-the-shelf model API or train your own?

How to approach it

Compare on quality for your task, cost at your scale, speed, data privacy and how much the model is a source of advantage.

How a strong answer opens

“I'd compare the options on quality for our task, cost at our scale, speed, privacy, and whether the model itself is a source of advantage. In most cases I'd start with an existing model.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

  1. Clarify the task and quality bar
  2. Test hosted models with good instructions and retrieval first; consider fine-tuning or an open-weight model only if that falls short
  3. Estimate cost at expected volume for each option
  4. Consider latency, privacy and control
  5. Consider team skills and maintenance
  6. Recommend starting with an API and revisiting at scale

Where this question usually goes wrong

Jumping to training your own model for control, without testing what existing models, retrieval or fine-tuning can already do.

Learn the method

Cost and latency trade-offs in Module 7, AI product interviews.

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