Fine-Tuning and Prompt Optimization: Two Great Steps that Work Better Together

AbstractNatural Language Processing (NLP) systems are increasingly taking the form of sophisticated modular pipelines, e.g., Retrieval Augmented Generation (RAG), where each module may involve a distinct Language Model (LM) and an associated prompt template. These compound systems often lack intermediate labels or gradient flow to optimize each module, making their end-to-end optimization challenging. Here we seek strategies to optimize both the module-level LM weights and the associated prompt templates of such systems to maximize a downstream task metric. We propose for the first time combining the weight and prompt optimization strategies to optimize a modular LM pipeline by alternating between the two to get the same LM to teach itself. In experiments with multi-hop QA, mathematical reasoning, and feature-based classification using mistral-7b, llama-2-7b, and llama-3-8b, these BetterTogether strategies optimizing the weights and prompts of a pipeline together outperform directly optimizing weights alone and prompts alone by up to 60% and 6%, respectively, on average across LMs and tasks. Our BetterTogether optimizer is released in DSPy at [http://dspy.ai](http://dspy.ai).