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Fine-Tuning Open-Source LLMs: From Experiment to Production in 30 Days

A practitioner's guide to fine-tuning Llama, Mistral, and Phi models for enterprise tasks — covering data prep, training, evaluation, and deployment.

AM
Arjun Mehta
Head of AI Engineering
15 min readJanuary 15, 2026

Why Fine-Tune?

Fine-tuning transforms a general-purpose model into a specialist. Instead of prompting a model to "act like a legal expert," you train it on thousands of real legal documents until it genuinely becomes one.

Data Strategy

Quality > Quantity. 5,000 carefully curated examples outperform 50,000 scraped ones.

Data format:
{

"instruction": "Extract all payment terms from this contract clause",

"input": "[contract text]",

"output": "Payment due within 30 days of invoice date. Late payment penalty: 1.5% monthly."

}

Training with QLoRA

from transformers import AutoModelForCausalLM, BitsAndBytesConfig

bnb_config = BitsAndBytesConfig(

load_in_4bit=True,

bnb_4bit_quant_type="nf4",

bnb_4bit_compute_dtype=torch.float16,

)

model = AutoModelForCausalLM.from_pretrained(

"meta-llama/Llama-3-8B-Instruct",

quantization_config=bnb_config,

device_map="auto",

)

Evaluation Framework

Never deploy without a comprehensive eval suite:

  • Task accuracy: Does it do the right thing?
  • Hallucination rate: Does it make things up?
  • Latency: Is it fast enough for your use case?
  • Regression: Did fine-tuning break existing capabilities?
Fine-tuningLlamaMistralLoRAMLOps

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