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    Artificial Intelligence

    Do You Really Need a Foundation Model?

    ProfitlyAIBy ProfitlyAIJuly 16, 2025No Comments10 Mins Read
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    are all over the place — however are they all the time the best selection? In at present’s AI world, it looks as if everybody desires to make use of basis fashions and brokers.

    From GPT to CLIP to SAM, corporations are racing to construct purposes round giant, general-purpose fashions. And for good cause: these fashions are highly effective, versatile, and sometimes straightforward to prototype with. However do you actually need one?

    In lots of instances — particularly in manufacturing situations — an easier, custom-trained mannequin can carry out simply as effectively, if not higher. With decrease price, decrease latency, and extra management.

    This text goals that will help you navigate this resolution by protecting:

    • What basis fashions are, and their professionals and cons
    • What {custom} fashions are, and their professionals and cons
    • How to decide on the best method primarily based in your wants, with actual world examples
    • A visible resolution framework to wrap all of it up

    Let’s get into it.

    Basis Fashions

    A basis mannequin is a big, pretrained mannequin skilled on large datasets throughout a number of domains. These fashions are designed to be versatile sufficient to unravel a variety of downstream duties with little or no further coaching. They are often seen as generalist fashions.

    They arrive in numerous varieties:

    • LLMs (Massive Language Fashions) reminiscent of GPT-4, Claude, Gemini, LLaMA, Mistral… We hear quite a bit about them because the launch of ChatGPT.
    • VLMs (Imaginative and prescient-Language Fashions) reminiscent of CLIP, Flamingo, Gemini Imaginative and prescient… They now are typically used increasingly, even in options like ChatGPT.
    • Imaginative and prescient-specific fashions reminiscent of SAM, DINO, Secure Diffusion, FLUX. They’re a bit extra specialised and largely utilized by practitioners, but extraordinarily highly effective.
    • Video-specific fashions reminiscent of RunwayML, SORA, Veo… This area has made unimaginable progress within the final couple of years, and is now reaching spectacular outcomes.

    Most are accessible by means of APIs or open-source libraries, and plenty of help zero-shot or few-shot studying.

    These fashions are often skilled at a scale that’s simply not reachable by most corporations, each by way of knowledge and computing energy. That makes them actually engaging for a lot of causes:

    • Normal-purpose and versatile: One mannequin can deal with many various duties.
    • Quick to prototype with: No want to your personal dataset or coaching pipeline.
    • Pretrained on huge, numerous knowledge: They encode world information and normal reasoning.
    • Zero/few-shot capabilities: They work fairly effectively out of the field.
    • Multimodal and versatile: They’ll generally deal with textual content, photographs, code, audio, and extra, which will be exhausting to breed for small groups.

    Whereas they’re highly effective, they arrive with some drawbacks and limitations:

    • Excessive operational price: Inference is dear, particularly at scale.
    • Opaque habits: Outcomes will be exhausting to debug or clarify.
    • Latency limitations: These fashions are typically very giant and have excessive latency, which will not be best for real-time purposes.
    • Privateness and compliance considerations: Information typically must be despatched to third-party APIs.
    • Lack of management: Tough to fine-tune or optimize for particular use instances, generally not even an possibility.
    Professionals and cons of basis fashions. Picture by creator.

    To recap, basis fashions are very highly effective: they’re skilled on large datasets, can deal with textual content, picture, video and extra. They don’t have to be skilled in your knowledge to work. However they’re often not price efficient, could have excessive latency and should required sending your knowledge to 3rd events.

    The choice is to make use of {custom} fashions. Let’s now see what which means.

    Customized Fashions

    A {custom} mannequin is a mannequin constructed and skilled particularly for an outlined process utilizing your individual knowledge. This could possibly be so simple as a logistic regression or as advanced as a deep studying structure tailor-made to your distinctive downside.

    They typically require extra upfront work however supply better management, decrease price, and higher efficiency on slender duties. Many highly effective and business-driving fashions are literally {custom} fashions, some well-known and extensively used, some addressing actually area of interest issues:

    • Netflix’s advice engine, utilized by billions, is a {custom} mannequin
    • Most churn prediction fashions, extensively utilized in many subscription-based corporations, are {custom} fashions (generally only a well-tuned logistic regression)
    • Credit score scoring fashions

    When utilizing {custom} fashions, you grasp each single step, making them actually highly effective for a number of causes:

    • Process-specific and optimized: You management the mannequin, the coaching knowledge, and the analysis.
    • Decrease latency and value: Customized fashions are often smaller and cheaper. It’s essential in edge or real-time environments.
    • Full management and explainability: They’re simpler to debug, retrain, and monitor.
    • Higher for tabular or structured knowledge: Basis fashions excel with unstructured knowledge. Customized fashions are likely to do higher on tabular knowledge.
    • Improved knowledge privacy: No have to ship knowledge to exterior APIs.

    Then again, it’s a must to practice and deploy your {custom} fashions your self to get enterprise worth out of them. It comes with some drawbacks:

    • Labeled knowledge could also be required: Which will be costly or time-consuming to get.
    • Slower to develop: Customized fashions require coaching a mannequin, implement pipelines, deploy and keep. That is time consuming.
    • Expert assets wanted: In-house ML experience is a should.

    Be at liberty to dig into deployment methods and the way to decide on the perfect method in that article:

    Professionals and cons for {custom} fashions. Picture by creator.

    In a single phrase, {custom} fashions give extra management and are often cheaper to scale. Nevertheless it comes at the price of a dearer and longer growth part — to not point out the talents. Then how to decide on correctly whether or not to make use of a {custom} mannequin or a basis mannequin? Let’s attempt to reply that query.

    Basis Mannequin or Customized Mannequin: How one can Select?

    When to Select a Customized Mannequin

    I might say {that a} {custom} mannequin should be the default selection total. However to be extra truthful, let’s see in what particular instances it’s clearly a greater resolution than a basis mannequin. It comes down just a few necessities:

    • Groups & Sources: you have got a machine studying engineer or knowledge staff, you possibly can label or generate coaching knowledge, and also you’re capable of spend time coaching and optimizing your mannequin
    • Enterprise: both you have got a very particular case to unravel, you have got privateness necessities, you want low infra price, otherwise you want low latency and even edge deployment
    • Lengthy-term objectives: you need management, and also you don’t wish to depend on third-party APIs

    If you end up in a number of of those conditions, a {custom} mannequin could also be your only option. Some typical examples I confronted in my profession had been in that scenario, for instance:

    • Constructing an in-house, {custom} forecasting mannequin for YouTube video income: you possibly can’t compromise on privateness, and no basis mannequin will do effectively sufficient on such particular use instances
    • Deploying real-time video resolution on smartphone: when it’s good to work at greater than 30 frames per second, no VLM can deal with the duty but
    • Credit score scoring for a financial institution: you possibly can’t compromise on privateness, and may’t use third-party options

    If you wish to dig into it, right here is an article about learn how to forecast YouTube video income:

    How Jellysmack Monetized YouTube Videos with Predictive Algorithms
    A Revolutionary Idea in the Creator Economy

    That being mentioned, whereas in some instances basis fashions should not the answer, let’s see after they truly are a viable possibility.

    When to Select a Basis Mannequin

    Let’s make the equal train for basis fashions: let’s first verify the necessities that make them possibility, and let’s take a look at some typical enterprise instances the place they’d thrive:

    • Workforce & Sources: you don’t essentially have labeled knowledge, nor ML engineers or knowledge scientists, however you do have AI or Software program engineers
    • Enterprise: you wish to take a look at an concept shortly or ship an MVP, you’re superb with utilizing exterior APIs, and latency or scaling price aren’t main considerations
    • Process Traits: your process is open-ended, otherwise you’re exploring a novel or artistic downside house

    Listed below are some typical examples the place basis fashions have confirmed worthwhile

    • Prototyping a chatbot for inside help or information administration: you have got an open-ended process, with low necessities on latency and scale
    • Many early-stage MVPs with out long-term infra considerations are good candidates

    As of now, basis fashions are actually standard for a lot of MVPs revolving round textual content and picture, whereas {custom} fashions have confirmed their worth in lots of enterprise instances. However why not combining each? In some instances, it’s doable to get the perfect options with hybrid approaches. Let’s see what which means.

    When to Use Hybrid Options

    In lots of real-world workflows, the perfect reply is a mixture of each approaches. For instance, listed below are just a few widespread hybrid patterns that may leverage the perfect of each worlds

    • Basis mannequin as a labeling device: use SAM or GPT to create labeled knowledge, then practice a smaller mannequin.
    • Data distillation: practice a {custom} mannequin to imitate the outputs of a basis mannequin.
    • Bootstrapping: begin with basis mannequin to check, then swap to {custom} later.
    • Characteristic extraction: use CLIP or GPT embeddings as enter to an easier downstream mannequin.

    I used a few of these approaches in previous tasks throughout my profession, and so they generally enable to get state-of-the-art options, utilizing the generalistic energy of basis fashions and the flexibleness and scalability of {custom} fashions.

    • In laptop imaginative and prescient tasks, I used Secure Diffusion to create numerous and sensible datasets, in addition to SAM to annotate knowledge shortly and effectively
    • Small Language Fashions are getting traction, and generally get benefit of data distillation to get the perfect out of LLMs whereas remaining smaller, extra specialised and extra scalable
    • One may also use instruments like ChatGPT to simply annotate knowledge at scale earlier than coaching {custom} fashions

    Here’s a concrete instance of utilizing basis fashions in hybrid options for laptop imaginative and prescient:

    In a phrase, in lots of instances when coping with unstructured knowledge, a hybrid method will be highly effective and provides the perfect of each worlds.

    Conclusion: Choice Framework

    Let’s now summarize with a choice chart when to go for a basis mannequin, when to go for a {custom} mannequin, and when to discover a hybrid method.

    Choice chart to decide on the best method: {custom} mannequin, basis mannequin or hybrid. Picture by creator.

    In just a few phrases, all of it comes right down to the undertaking and the necessity. Positive, basis fashions are buzzing proper now, and they’re on the coronary heart of the present brokers revolution. Nonetheless, many very worthwhile enterprise issues will be addressed with {custom} fashions, whereas basis fashions are confirmed highly effective in lots of unstructured knowledge issues. To decide on correctly, a correct evaluation of the wants and necessities with stakeholders and engineers, together with a choice framework stays resolution.

    What about you: have you ever confronted any scenario the place the perfect resolution shouldn’t be what you would possibly assume?

    References

    • Talked about LLMs: GPT by OpenAI, Claude by Anthropic, Llama by Meta, Gemini by Google, and we may cite extra reminiscent of Mistral, DeepSeek, and many others…
    • Imaginative and prescient-related fashions: SAM by Meta, CLIP by OpenAI, DINO by Meta, StableDiffusion by StabilityAI, FLUX by Black Forest Labs
    • Video-specific fashions: Veo by Google, RunwayML, SORA by OpenAI…



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