learn-ai-literacy-with-phoebe / Session 7 of 8
Learn AI Literacy with Phoebe · Session 7 of 8

Using GenAI well: prompt, ground, verify

You know how an LLM works (Session 6). Now the practical craft: a prompt is a specification, not a magic spell; RAG grounds the model in your own data; and the choice between prompting, RAG and fine-tuning decides your cost and effort. Plus the discipline that separates demos from deployments - evals, so you actually know it works.

🟠 Stretch Leaders & practitioners No code 45 min live + self-study
0-3 · Welcome 3-18 · Concepts 18-40 · Apply-along 40-45 · Q&A
Part 0

From understanding to using

Most people use GenAI at 10% of its value because they treat it like a search box. This session is the craft layer: how to write a prompt that gets useful output every time, how to ground the model in your company's real data so it stops guessing, when to reach for the expensive option (fine-tuning) versus the cheap ones, and how to prove a GenAI feature is good enough to ship. Leaders leave able to judge a GenAI project; practitioners leave able to shape one.

Live - presented in session Self-study - practitioner depth ★ Apply-along - interactive, everyone plays Sequel to learn-data-literacy
★ What you walk out with today The prompt-as-specification pattern (role, task, constraints, format) that doubles output quality for free, a clear decision rule for prompt vs RAG vs fine-tune, and the habit that makes GenAI safe to ship - defining an eval before you trust it.
Part 1 · the free upgrade

Prompting is specification 5 min live

"Summarize this" and a full spec get wildly different results from the same model. A good prompt tells the model who to be, what to do, what constraints to respect, and what format to return. It is not a secret incantation - it is a clear brief, the kind you would give a sharp new hire. Give examples (few-shot) and you steer even harder.

The five parts of a prompt that works ROLE "You are a support manager..." TASK "Summarize this customer email..." CONTEXT the email itself, pasted in (or retrieved) CONSTRAINTS "2 sentences, neutral tone, no jargon" FORMAT "issue on line 1, action on line 2" Skip these and you get generic output. Name them and the same model does far better. Few-shot = add 1-2 worked examples. The strongest steering of all: show, do not just tell. A prompt is a brief for a brilliant, literal, eager new hire who has no context but yours.
🔍 Click to zoom - the anatomy of a prompt that earns its output
LiveWrite the brief, not the wish3 min▶
  • Role sets the voice and expertise. "You are a pediatric nurse explaining to a worried parent" changes tone, vocabulary, and what gets emphasized - for free.
  • Constraints do the heavy lifting. Length, audience, tone, format, and things to avoid. Vague prompts get vague output because you left every choice to the model.
  • Examples beat adjectives. One or two worked examples (few-shot) steer harder than any pile of describing words. Show the shape you want.
  • Iterate. First output is a draft of your prompt, not just the answer. Tighten the brief and rerun - that loop is the skill.
Real world

Teams that write a shared prompt library - a vetted, reusable prompt per common task - get consistent output across everyone, instead of each person reinventing "summarize this" badly. The prompt becomes an asset, like a document template. That is the difference between dabbling and operating.

Self-studySystem vs user prompts, and prompts as assets2 min read▶

In real applications there are two layers: the system prompt (set once by the builder - the persistent role, rules, and guardrails) and the user prompt (what the end user types each time). The system prompt is where you bake in "always refuse X", "answer only from provided context", "use this format" - so end users get safe, consistent behavior without having to prompt well themselves. Practitioner takeaway: treat prompts as versioned assets. Store them, test them (evals, Part 3), and change them deliberately - a prompt edit is a product change, and an untested one can quietly break output for everyone.

Part 2 · the money decision

Prompt, RAG, or fine-tune? 5 min live

Three ways to make a general model fit your specific need, from cheapest to most expensive. Most teams reach for the expensive one first and waste a quarter. The rule is simple: prompt first, add RAG when it needs your facts, fine-tune only for consistent style or format at scale - and rarely.

Does it need YOUR current or private facts? Prompt it no -> free, instant, first resort need current/private facts? Add RAG retrieve YOUR docs into context Need one consistent style/format at scale? Fine-tune retrain on your examples - $$, slow Almost everything else a better prompt + RAG wins - cheaper Order of resort: 1. prompt 2. RAG 3. fine-tune (last)
🔍 Click to zoom - cheapest tool that clears the bar, escalate only if it does not
LiveThe three tools, and when each earns its cost3 min▶
  • Prompting - free, instant, no infrastructure. Your first resort for nearly everything. Most "we need a custom model" problems are actually "we need a better prompt".
  • RAG (Session 5) - retrieve your own documents and feed them into the context so the model answers from your facts, not its training. The enterprise default for "answer from our knowledge". Grounding beats guessing.
  • Fine-tuning - actually retrain the model on your examples. Expensive, slow, and worth it mainly for a consistent style or output format at high volume (not for teaching it facts - RAG does that better and stays current).
  • The trap: jumping to fine-tuning for a facts problem. Facts change; a fine-tuned model goes stale, while RAG just retrieves the latest. Match the tool to the need.
The exec move When a team proposes fine-tuning, ask two questions: "did a strong prompt fail?" and "is this about style or facts?" If facts, it is RAG. Fine-tuning is the answer surprisingly rarely, and it is the most expensive answer to be wrong about.
Self-studyCost and latency literacy2 min read▶

Two numbers govern any GenAI feature in production. Cost: you pay per token (in and out), so a chatty prompt or a huge retrieved context costs real money at scale - a feature that is fine in a demo can be ruinous at a million calls a day. Latency: bigger models are slower; a user waiting 8 seconds for a reply may churn. The practitioner move is to match model size to task - a small fast model for routing and simple replies, a large one only for the genuinely hard step - and to trim context to what is needed. "Which model?" is a cost/latency/quality tradeoff, not "always the biggest".

Part 3 · steps and standards

Agents, tools, and knowing it works 5 min live

An agent is an LLM that can call tools (search, a calculator, your APIs) and take several steps toward a goal instead of answering in one shot. Powerful - and it multiplies the failure modes, so it needs guardrails. And underneath all of it sits the discipline nobody demos but everybody needs: evals. You cannot ship what you cannot measure.

Think / plan Pick a tool Act (call it) Observe result loop until goal met(or it gets stuck) EVAL GATE test before you trust the output More power, more failure modes: it can loop, misuse a tool, or compound a small error. Guardrails + evals are not optional.
🔍 Click to zoom - the agent loop, and the gate that keeps it honest
LiveAgents add power and risk; evals add trust3 min▶
  • Agents can do multi-step work - search, then read, then draft, then send - by calling tools between reasoning steps. This is how GenAI reaches beyond one reply into real tasks.
  • They also fail in new ways: looping without finishing, calling the wrong tool, or compounding an early mistake across steps. Give them limited tools, step caps, and human approval on anything irreversible.
  • Evals are how you know it works. A set of test cases with known-good answers, run every time you change the prompt or model, plus human review on a sample. "It looked great in the demo" is not an eval.
  • Measure before and after every change. A prompt tweak that helps one case can quietly break ten others. Without an eval set you are flying blind.
Real world

The teams shipping reliable GenAI features are not the ones with the cleverest prompts - they are the ones with an eval set of 50-200 real cases they run on every change, tracking a quality score over time. It is the unglamorous habit (straight out of the data-literacy lifecycle) that turns a flashy demo into a dependable product.

Self-studyWhat an eval actually looks like2 min read▶

An eval is a small, curated test set: real inputs paired with what a good output looks like (or a rule for judging one). You run the whole set on every prompt or model change and get a score - percent correct, or a rubric rating from a human or a second model acting as judge. For a support-reply bot, that might be 100 real tickets with model answers rated on accuracy, tone, and whether they leaked anything they should not. The point is a number that moves when quality moves, so decisions ("ship the new prompt?", "switch models?") stop being vibes. This is the same act as train/test from the data-literacy course, applied to GenAI.

Apply-along 1 of 3

Weak prompt, strong prompt ★ 10 min · everyone compares

Same model, same task - only the prompt changes. Flip between the weak and strong version and watch the output transform. Then rewrite one of your own real prompts as a spec.

For each task, read the weak output, then flip to the strong prompt and its output. Name what the strong prompt added (role, length, audience, constraints, banned words, format).

Extract the pattern into your own words - the five parts from Part 1.

Take a prompt you actually used this week and rewrite it as a spec. Share one before/after.

Apply-along 2 of 3

Pick the approach ★ 6 min · everyone decides

Four scenarios: (a) answer employee questions from our internal wiki, (b) always write in our exact brand voice, (c) a one-off summary of a report, (d) analyze this quarter's numbers.

For each, choose prompt / RAG / fine-tune and justify with the Part 2 rule (current-or-private facts -> RAG; consistent style at scale -> fine-tune; else -> prompt).

Expected: (a) RAG, (b) fine-tune candidate, (c) prompt, (d) prompt with the numbers pasted in (grounding). Debate the close calls.

Note which of your own real use cases were secretly "just prompt it better" all along.

Apply-along 3 of 3

Design an eval ★ 6 min · everyone specs

Pick one GenAI use case from your world (a drafting bot, a summarizer, a classifier).

Define its eval: what test cases (how many, drawn from where), who or what judges them, and what bar it must clear to ship.

Name the failure you most need to catch (wrong facts? wrong tone? leaked data?) and make sure a test case covers it.

Write one sentence: "We ship this when ___ % of ___ cases pass ___ review." That sentence is the difference between a demo and a product.

Real world

"It seemed fine when I tried it" is how bad GenAI features reach customers. A 50-case eval run before every change catches the regressions your spot-check never will - the same act as testing any other software, just newer.

After the session

This week ◐ 25 min total

Check yourself

Three questions before you go 🎯 ◐ 90 seconds

1 · What makes a prompt strong?

A prompt is a brief, not an incantation. Naming the role, constraints and format does the work; examples steer hardest. Length for its own sake does not help.

2 · You need an assistant that answers from your company's current internal docs. Best approach?

Facts that change belong in RAG, not fine-tuning. Retrieval always uses the latest docs; a fine-tuned model goes stale the moment a doc updates.

3 · What is an eval and why do you need one?

Evals turn "seemed fine" into a measured score that catches regressions when you tweak a prompt or swap a model. You cannot ship what you cannot measure.

Source material

Concepts covered & where they come from

Leaders get the judgment; practitioners get the Self-study lane and the patterns to apply Monday.

✓Prompting as specificationrole/task/context/constraints/format + few-shot - Part 1 + Apply-along 1
✓Prompt vs RAG vs fine-tunethe decision tree and the fine-tuning trap - Part 2 + Apply-along 2
✓Agents + tools, and evalsthe agent loop, guardrails, test-before-trust - Part 3 + Apply-along 3
◐System vs user prompts, prompts as assetsself-study card - the builder's layer
◐Cost + latency literacyself-study card - matching model size to task

Session 7 cheat sheet · pin this

Prompt = specRole · task · context · constraints · format. Plus 1-2 examples (few-shot). A brief for a brilliant, literal new hire.
Order of resort1. Prompt (free) · 2. RAG (ground in your data) · 3. Fine-tune (last, expensive).
RAG vs fine-tuneFacts that change -> RAG. Consistent style/format at scale -> fine-tune. Most needs -> a better prompt.
AgentsLLM + tools + multiple steps. More power, more failure modes. Limit tools, cap steps, approve the irreversible.
EvalsReal cases + known-good answers, run on every change. A number, not a vibe. You cannot ship what you cannot measure.
Cost + latencyPay per token; bigger = slower. Match model size to task; trim context. Not "always the biggest".