Uncover the latest AI trends in Appen's 2024 State of AI Report.

Supervised Fine Tuning

Supervised fine tuning (SFT) is essential for adapting large language models (LLMs) to deliver high-precision performance on domain-specific tasks. As organisations operationalise AI, SFT enables greater control, alignment with business objectives, and measurable improvements in model outcomes.

What Is Supervised Fine Tuning?

Supervised fine tuning (SFT) enables organisations to adapt pre-trained AI models to their specific needs with high-quality, LLM training data. This targeted approach transforms general-purpose models into domain-optimised solutions that deliver greater accuracy, efficiency, and business value.

Pre-Training vs Fine Tuning: Understanding the Difference

Large language models are first pre-trained on general AI data to build a foundational understanding of language, context, and structure. Models are then refined with supervised fine tuning to optimise performance in specific tasks and domains, such as science or economics. Curated SFT data enables models to perform with greater accuracy in nuanced real-world applications.

Features
Pre-Training
Fine Tuning
Objective
Train model on generalisable skills, such as natural language processing
Align an LLM to specific use cases and goals
Data Requirements
  • Large, multi-domain datasets
  • Filtered for accuracy
  • Smaller, specialised datasets
  • Curated for specific use cases
Outcome
Build a foundation model to operate across diverse use cases
Tailor model performance on specific tasks and domains

What is an SFT Dataset?

SFT data consists of structured datasets curated to train models for a specific task or domain. In the context of supervised learning, these datasets include both input data (e.g., text, images) and the corresponding output (e.g., categories, responses) that guide the model during training. A high standard of AI data quality is essential to ensuring the model learns the right patterns to optimise task-specific outputs.

How It Works: Supervised Fine Tuning Step-by-Step

Supervised fine tuning (SFT) is a meticulous process, requiring several stages to enhance model performance.

1

Data Collection and Preparation

The first stage of the fine-tuning process involves domain-specific AI data collection to build datasets that reflect the tasks the model is intended to perform. This data should be high-quality, diverse, and relevant to the intended use case. In machine learning pipelines, data preparation typically includes cleaning, normalising, and transforming raw input data into a usable format for model training.

2

Data Annotation and Quality Assurance

SFT depends on high quality data for success. Once data is collected, it must be annotated and evaluated to create accurate, consistent, and representative datasets. Data annotation strategies vary based on the desired outcome and include tasks like tagging sentiment, categorising entities, and identifying linguistic relationships. Appen specialises in creating complex SFT datasets to enhance model performance in nuanced and challenging use cases like summarisation and chain-of-thought reasoning.

3

Fine-Tuning Model Weights

Fine-tuning leverages structured data to adjust the pre-trained model’s weights and minimise errors on specific tasks. This typically involves training the model on the SFT dataset with a lower learning rate to ensure that it retains its generalised knowledge while specialising in the new task. Techniques such as gradient descent and backpropagation are commonly used in this phase to optimise model performance.

4

Evaluation and Iteration

After fine-tuning, the model undergoes rigorous evaluation using predefined performance metrics. Model evaluation benchmarks vary based on the intended use case but typically include accuracy, F1 score, and domain-specific KPIs. Based on the evaluation results, the model may require further fine tuning – such as adjusting hyperparameters, increasing the dataset size, or re-annotating data—to improve results. This iterative cycle ensures continuous model improvement and efficiency.

SFT Techniques

SFT Technique
Description
Pros
Cons
Best Use Case
Full Fine Tuning
Fine-tune all model parameters using a task-specific dataset.
Maximum control and performance outcomes.
Resource intensive: time-consuming with large data and compute requirements.
Mission-critical systems where top accuracy and customisation are required.
Parameter-Efficient Fine Tuning (PEFT)
Update a small subset of parameters (e.g. adapters, LoRA layers).
Resource efficient: lightweight, fast, cost-efficient, and easier to deploy across environments.
May underperform on complex or high-stakes tasks.
Rapid prototyping, resource-constrained environments, or scaling across multiple domains.
Instruction Tuning
Train models to follow human-written instructions across diverse tasks.
Improves generalisation and prompt-following behaviour.
Less effective for narrow or highly technical domains.
Building general-purpose assistants or improving prompt adherence.
RLHF (Reinforcement Learning from Human Feedback)
Combine fine tuning with human feedback using reinforcement learning.
Aligns model behaviour with human values; improves output quality.
Setup can be complex, requiring skilled human annotators and compute.
Aligning generative models for safety, tone, or user experience in sensitive domains.

How Appen Supports Supervised Fine Tuning

Appen provides end-to-end support for organisations fine-tuning AI models—helping you unlock domain-specific performance with scalable, high-quality data solutions.

Curated SFT Datasets

We source and prepare high-quality, domain-relevant data tailored to your specific use case. From finance and healthcare to retail and customer support, our curated datasets provide the foundation for effective supervised fine tuning.

Human Annotation at Scale

Appen delivers accurate, high-volume annotations powered by a global crowd and expert linguistic teams. Our QA workflows ensure every annotation meets the standards needed to fine-tune large language models with precision.

Model Evaluation & Iterative Fine-Tuning

Our team supports continuous evaluation with human-in-the-loop feedback, enabling rapid iteration and refinement. We help you measure what matters—accuracy, relevance, safety—and improve your model with each cycle.

Appen in Action

Appen supports leading foundation model builders, technology companies, and enterprises to improve their AI performance across diverse applications from red teaming chatbots to domain-specific summarisation and reasoning.

Preference Ranking & Supervised Fine-Tuning for 70+ Dialects

Appen supported a global technology company in improving its LLM’s performance across more than 70+ dialects and 30+ languages by providing structured human feedback. Contributors engaged in multi-turn dialogues, ranking responses from five model variations based on coherence, factuality, fluency, and instruction-following. 250,000+ dialogue rows were collected, refining model outputs for supervised fine-tuning. The project expanded from 10+ dialects in 5+ languages to 70+ dialects, enhancing cultural alignment and language accuracy in model responses.

Multi-Domain Reasoning Prompts for LLM Fine-Tuning

Appen supported a leading LLM builder in developing complex, multi-domain prompts to enhance model reasoning capabilities. Using Appen's AI data platform (ADAP), contributors validated model outputs with AI Chat Feedback and Model Mate tools and provided step-by-step corrections across tasks requiring logical, statistical, and abstract reasoning. Appen delivered 10,000+ high-complexity prompts spanning 9 reasoning types and 10 domains, enabling targeted supervised fine-tuning that improved the model’s ability to tackle advanced reasoning tasks.

Fine-Tuning LLMs for Coding and Programming Tasks

To improve model performance on programming benchmarks, a foundation model builder partnered with Appen to fine-tune LLMs on diverse coding tasks such as NL2SQL, code review, and merge requests. Leveraging a dedicated team of 100+ coding experts, Appen created high-quality SFT data, developed benchmark sets, and ran A/B testing on each model iteration. This work led to measurable improvements in accuracy and relevance, helping the client achieve cutting-edge benchmark performance while reducing evaluation turnaround times through a continuous feedback loop.

ReflexAI: Supporting Veterans with Mental Health AI

Appen worked with ReflexAI to train and evaluate a mental health support chatbot for U.S. veterans. Our experts provided high-quality training data for supervised fine-tuning, simulating realistic dialogues and ensuring outputs were accurate, empathetic, and aligned with safety guidelines. This work helped improve access to trusted, AI-assisted mental health support for those who served.

At ReflexAI, we are on a mission to improve training for peer-to-peer crisis support among veterans with our revolutionary AI-powered model, HomeTeam. Appen is an essential partner to us in this process. They appreciate the sensitive nature of our work and provide expert support for fine-tuning our model to accurately replicate how a conversation about mental health and crisis would go. Our partnership with Appen enabled us to achieve 93% positive user feedback.
Glenn Herzberg
Director of Product Marketing, ReflexAI

Why Appen?

Appen enables supervised fine tuning with a network of global talent and AI Data Platform (ADAP) tooling designed for essential SFT tasks – like custom AI data collection, red teaming, and benchmarking – to ensure reliable and adaptable outputs for specialized use cases.

Domain Expertise

Fine tune your model for specialized domains, like engineering and law, with human-generated SFT data.

Human Alignment 

Leverage Appen’s expert crowd to evaluate your model output, ensuring safe and reliable model performance across a range of languages, cultures, and applications.

Iterative Improvement

Develop efficient workflows for creating your SFT data, training your model, and validating performance with consistent, real-world testing.

AI Data Platform (ADAP)

Our popular AI data platform enforces efficient, high-quality, and guideline-compliant evaluation, benchmarking, A/B testing, and red teaming.

Ethical & Regulatory Compliance

Fine tune your model on ethically sourced, licensable data and human insights to mitigate risks to your business and end users.

Global Reach

Appen’s 1M+ global workforce ensures scalability, bridging the gap in multilingual AI to include rare and low-resource languages.

Get Started 

With 25+ years of experience, Appen is the trusted data partner for 80% of leading LLM builders. Leverage Appen’s expert support to fine tune ethical, reliable AI solutions tailored to complex real-world challenges.

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