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AIF-C01 Fundamentals of Generative AI Practice Question

A company is building a chatbot that must provide accurate answers based on internal documents without retraining the model. Which approach should they use?

⚠ Common exam trap

Test-takers frequently confuse fine-tuning (which requires retraining) with RAG (which does not), or mistakenly think RLHF or distillation can inject new factual knowledge without retraining, when in fact they address alignment, efficiency, or behavior, not dynamic knowledge retrieval.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

Prompt engineering with retrieval-augmented generation (RAG)

Retrieval-augmented generation (RAG) allows the chatbot to fetch relevant internal documents at inference time and incorporate them into the prompt, providing accurate, up-to-date answers without retraining the model. This approach combines prompt engineering with a retrieval step, ensuring the model's responses are grounded in the company's specific knowledge base while keeping the base model frozen.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Reinforcement learning from human feedback (RLHF)

    Why it's wrong here

    RLHF optimises model behaviour against human preference rankings; it cannot retrieve internal documents and needs reward-labelling effort. It is tempting because it aligns responses with human expectations, and it would be correct for tuning helpfulness or safety rather than supplying factual grounding from a knowledge base.

  • ✗

    Fine-tuning the model on internal documents

    Why it's wrong here

    Fine-tuning alters model weights and requires labelled training data plus retraining cycles, which the question explicitly excludes. It is tempting because it genuinely improves tone and task-specific behaviour, and it would be correct when a fixed style or format must be learned rather than current documents retrieved.

  • ✗

    Model distillation to a smaller model

    Why it's wrong here

    Distillation compresses an existing model into a smaller one, preserving learned behaviour but adding no connection to internal documents. It is tempting because it cuts inference cost and latency, and it would be correct when deployment footprint or throughput matters more than grounding answers in a document corpus.

  • ✓

    Prompt engineering with retrieval-augmented generation (RAG)

    Why this is correct

    Retrieval-augmented generation retrieves relevant passages from internal documents at query time and supplies them as context, so the chatbot answers from current source material without retraining. Prompt engineering shapes how that retrieved context is used, meeting the no-retraining constraint.

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