Fine tuning is better than RAG when the additional data isn't concise, or requires context. This is because too much context (or "unfocused" context) can dilut

Fine tuning is better than RAG when the additional data isn't concise, or requires context. This is because too much context (or "unfocused" context) can dilute prompt following behavior, and RAG doesn't help the model with higher order token associations so you have to get lucky and pull what you need from the augmentation material, at which point it's not much better than a fancy search engine. Of course this is mostly an issue when you're dealing with a specialized corpus with its own micro-dialect that isn't well represented in public data sets, such as with government/big corporation internal documents.