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    Lesson 2 of 5

    Dataset Preparation: The Make-or-Break Step

    From the course Fine-Tuning AI Models: LoRA, QLoRA & Beyond

    Your fine-tuned model is only as good as the data you train it on. Dataset preparation is where most fine-tuning projects succeed or fail.

    Dataset Formats

    Most fine-tuning frameworks expect data in a conversational format:

    {
      "messages": [
        {"role": "system", "content": "You are a medical coding assistant."},
        {"role": "user", "content": "Patient presents with acute bronchitis..."},
        {"role": "assistant", "content": "ICD-10 Code: J20.9 — Acute bronchitis, unspecified..."}
      ]
    }
    

    How Much Data Do You Need?

    Surprisingly little for many tasks:

    • Style/format transfer: 50-200 high-quality examples
    • Domain adaptation: 500-2,000 examples
    • New capability: 2,000-10,000 examples
    • Complex reasoning: 10,000+ examples with chain-of-thought

    Quality always trumps quantity. 100 expertly crafted examples outperform 10,000 noisy ones.

    Data Collection Strategies

    1. Manual curation: Have domain experts write ideal input-output pairs. Highest quality but most expensive.
    2. Synthetic generation: Use a stronger model (GPT-4, Claude) to generate training data. Fast but requires careful quality filtering.
    3. Distillation: Run a large model on your production queries, filter the best responses, and use those to train a smaller model.
    4. Existing logs: If you have production chat logs with human feedback, these are gold.

    Data Quality Checklist

    • ✅ Consistent formatting across all examples
    • ✅ No contradictory examples (same input, different correct outputs)
    • ✅ Representative of real-world distribution
    • ✅ Balanced across categories/labels
    • ✅ Free of PII and sensitive data
    • ✅ Validated by domain experts

    Train/Validation Split

    Always hold out 10-20% of your data for validation. This lets you detect overfitting — when training loss drops but validation loss increases, you've trained too long.

    Common Pitfalls

    • Contamination: Training data that leaks into your evaluation set gives falsely optimistic results
    • Distribution shift: Training on formal text but deploying on casual queries
    • Label noise: Inconsistent or incorrect labels in your training data poison the model

    Key Takeaways

    • •Quality trumps quantity — 100 expert examples beat 10,000 noisy ones
    • •Use conversational JSON format with system/user/assistant messages
    • •Always maintain a held-out validation set to detect overfitting
    • •Synthetic data generation from stronger models is a viable bootstrapping strategy
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