In plain English
Fine-tuning takes a model that is already pre-trained and trains it further on a smaller, focused dataset so it performs better for a particular task, domain, or style. Unlike prompting, it actually changes the model weights, which makes the new behaviour durable. It is most useful for locking in a consistent style or format at scale, not for teaching the model new facts.
Why it matters
Fine-tuning can make a model reliably behave the way you need across thousands of requests, but it carries ongoing cost and maintenance, so it is worth it only when prompting genuinely is not enough.
A worked example
A firm fine-tunes a general model on its past support replies so the assistant consistently matches the company's tone and house terminology.
Common confusion
Fine-tuning shapes behaviour, not knowledge or reasoning. To give a model current or proprietary facts, retrieval-augmented generation is usually the better tool.

