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Transformer Models And Fine Tuning

Learn Transformer Models And Fine Tuning for NLP Engineer for free: roadmap, examples, subskills, and a skill exam.

Published: January 5, 2026 | Updated: January 5, 2026

Why this skill matters for NLP Engineers

Transformers like BERT, GPT, and T5 power modern NLP. As an NLP Engineer, you will map business problems to model families, fine-tune efficiently on limited data, and deploy models that are reproducible and cost-effective. Mastering fine-tuning, prompt strategies, and parameter-efficient methods (like LoRA) unlocks tasks such as classification, NER, summarization, question answering, and generation.

What you will learn

  • Pick the right base model (BERT-like, GPT-like, T5/BART) for your task and constraints.
  • Fine-tune for classification, token-level tasks (NER), and seq2seq tasks (summarization, translation).
  • Use prompting and few-shot techniques; decide when fine-tuning is worth it.
  • Apply parameter-efficient tuning (LoRA) to cut compute and memory costs.
  • Manage seeds, checkpoints, and configs to ensure reproducibility.

Who this is for

  • Junior to mid-level ML/NLP practitioners moving beyond basic pipelines.
  • Data scientists transitioning into production NLP roles.
  • Engineers shipping text understanding or generation features.

Prerequisites

  • Python basics and PyTorch familiarity.
  • Comfort with datasets, train/val/test splits, and evaluation metrics.
  • Basic understanding of attention and tokens/subwords.

Learning path

1) Model families

Understand BERT (encoder), GPT (decoder), and T5/BART (encoder–decoder) and their best-fit tasks.

2) Choose a base model

Match models to dataset size, latency, and licensing constraints.

3) Fine-tune core tasks

Implement classification, NER, and seq2seq fine-tuning with standard trainers.

4) Prompting vs fine-tuning

Prototype with prompts; escalate to fine-tuning when needed.

5) Parameter-efficient tuning

Apply LoRA to reduce GPU memory and speed up training.

6) Reproducibility

Save seeds, checkpoints, configs, and training metadata.

Roadmap with practical milestones

  • Milestone 1: Run a zero-shot or few-shot baseline with prompting.
  • Milestone 2: Fine-tune a compact encoder (e.g., MiniLM/DistilBERT) for text classification; hit >85% accuracy on a clean dataset.
  • Milestone 3: Train an NER model and verify label alignment and F1 >80%.
  • Milestone 4: Fine-tune a T5/BART summarizer with ROUGE evaluation.
  • Milestone 5: Re-run experiments deterministically and reproduce results within a small tolerance.
  • Milestone 6: Apply LoRA and demonstrate comparable performance with lower compute cost.

Worked examples

Example 1: Quick baseline via prompting (zero/few-shot)
from transformers import pipeline

classifier = pipeline("text-classification", model="facebook/bart-large-mnli")
# Zero-shot classification using NLI as proxy
result = classifier(
    "The restaurant was slow but the food was excellent.",
    candidate_labels=["positive", "negative", "neutral"]
)
print(result)

Why: Establish a quick baseline and decide if fine-tuning is necessary.

Example 2: Fine-tune a text classifier (encoder-only)
import torch
from datasets import load_dataset
from transformers import (AutoTokenizer, AutoModelForSequenceClassification,
                          TrainingArguments, Trainer, set_seed)

set_seed(42)
name = "distilbert-base-uncased"
model = AutoModelForSequenceClassification.from_pretrained(name, num_labels=2)
tokenizer = AutoTokenizer.from_pretrained(name)

ds = load_dataset("imdb")

def tokenize(batch):
    return tokenizer(batch["text"], truncation=True, padding="max_length", max_length=256)

tok = ds.map(tokenize, batched=True)
tok = tok.rename_column("label", "labels")
tok.set_format(type="torch", columns=["input_ids","attention_mask","labels"])

args = TrainingArguments(
    output_dir="./ckpt-cls",
    evaluation_strategy="epoch",
    save_strategy="epoch",
    learning_rate=2e-5,
    per_device_train_batch_size=16,
    per_device_eval_batch_size=32,
    num_train_epochs=2,
    weight_decay=0.01,
    load_best_model_at_end=True,
    metric_for_best_model="accuracy"
)

from evaluate import load as load_metric
acc = load_metric("accuracy")

def compute_metrics(eval_pred):
    logits, labels = eval_pred
    preds = logits.argmax(-1)
    return acc.compute(predictions=preds, references=labels)

trainer = Trainer(
    model=model,
    args=args,
    train_dataset=tok["train"].select(range(20000)),
    eval_dataset=tok["test"],
    tokenizer=tokenizer,
    compute_metrics=compute_metrics,
)
trainer.train()
trainer.save_model("./ckpt-cls/best")

Tip: Start with a small subset to iterate quickly; then scale.

Example 3: Token classification (NER) with subword alignment
from datasets import load_dataset
from transformers import (AutoTokenizer, AutoModelForTokenClassification,
                          DataCollatorForTokenClassification, TrainingArguments, Trainer)

name = "bert-base-cased"
model = AutoModelForTokenClassification.from_pretrained(name, num_labels=9)
tokenizer = AutoTokenizer.from_pretrained(name)

ds = load_dataset("conll2003")
label_list = ds["train"].features["ner_tags"].feature.names

def tokenize_and_align(examples):
    tokenized = tokenizer(examples["tokens"], truncation=True, is_split_into_words=True)
    labels = []
    for i, word_ids in enumerate(tokenized.word_ids(batch_index=None)):
        word_ids = tokenized.word_ids(i)
        label_ids = []
        previous = None
        for wid in word_ids:
            if wid is None:
                label_ids.append(-100)
            elif wid != previous:
                label_ids.append(examples["ner_tags"][i][wid])
                previous = wid
            else:
                # set to I- tag or same tag; simplest: repeat same id for subwords
                label_ids.append(examples["ner_tags"][i][wid])
        labels.append(label_ids)
    tokenized["labels"] = labels
    return tokenized

tok = ds.map(tokenize_and_align, batched=True)
collator = DataCollatorForTokenClassification(tokenizer)

args = TrainingArguments(
    output_dir="./ckpt-ner",
    evaluation_strategy="epoch",
    save_strategy="epoch",
    learning_rate=3e-5,
    per_device_train_batch_size=16,
    per_device_eval_batch_size=32,
    num_train_epochs=3,
)

trainer = Trainer(
    model=model,
    args=args,
    train_dataset=tok["train"],
    eval_dataset=tok["validation"],
    tokenizer=tokenizer,
    data_collator=collator,
)
trainer.train()

Key: Mask ignored tokens with -100 and align labels to subwords.

Example 4: Seq2seq fine-tuning (summarization with T5)
from datasets import load_dataset
from transformers import (AutoTokenizer, AutoModelForSeq2SeqLM,
                          DataCollatorForSeq2Seq, TrainingArguments, Trainer)

name = "t5-small"
model = AutoModelForSeq2SeqLM.from_pretrained(name)
tokenizer = AutoTokenizer.from_pretrained(name)

ds = load_dataset("xsum")

def preprocess(batch):
    inputs = ["summarize: " + x for x in batch["document"]]
    model_inputs = tokenizer(inputs, max_length=512, truncation=True)
    with tokenizer.as_target_tokenizer():
        labels = tokenizer(batch["summary"], max_length=64, truncation=True)
    model_inputs["labels"] = labels["input_ids"]
    return model_inputs

tok = ds.map(preprocess, batched=True)
collator = DataCollatorForSeq2Seq(tokenizer, model=model)

args = TrainingArguments(
    output_dir="./ckpt-t5",
    evaluation_strategy="steps",
    eval_steps=1000,
    save_steps=1000,
    learning_rate=3e-5,
    per_device_train_batch_size=4,
    per_device_eval_batch_size=8,
    num_train_epochs=1,
    predict_with_generate=True,
    fp16=True
)

trainer = Trainer(
    model=model,
    args=args,
    train_dataset=tok["train"].select(range(5000)),
    eval_dataset=tok["validation"].select(range(1000)),
    tokenizer=tokenizer,
    data_collator=collator,
)
trainer.train()

Seq2seq needs generation-aware evaluation and proper max lengths.

Example 5: Parameter-efficient tuning with LoRA
# Requires the 'peft' library
import torch
from datasets import load_dataset
from transformers import AutoModelForCausalLM, AutoTokenizer, TrainingArguments, Trainer
from peft import LoraConfig, get_peft_model

name = "gpt2"
base = AutoModelForCausalLM.from_pretrained(name)
tokenizer = AutoTokenizer.from_pretrained(name)

config = LoraConfig(r=8, lora_alpha=16, lora_dropout=0.05, target_modules=["c_attn"], bias="none")
model = get_peft_model(base, config)

text = ["Q: What is LoRA? A:", "Q: Define transfer learning. A:"]
labels = text

def tokenize(examples):
    tokens = tokenizer(examples["text"], truncation=True, padding="max_length", max_length=128)
    tokens["labels"] = tokens["input_ids"].copy()
    return tokens

ds = load_dataset("json", data_files={"train": [{"text": t} for t in text]})
ds = ds.map(tokenize, batched=True)
ds.set_format(type="torch", columns=["input_ids","attention_mask","labels"])

args = TrainingArguments(
    output_dir="./ckpt-lora",
    learning_rate=1e-4,
    per_device_train_batch_size=8,
    num_train_epochs=3,
    logging_steps=10
)

trainer = Trainer(model=model, args=args, train_dataset=ds["train"], tokenizer=tokenizer)
trainer.train()
model.save_pretrained("./ckpt-lora/final")

LoRA adapts small matrices on top of frozen weights, reducing memory and speeding up training.

Example 6: Reproducibility and checkpointing
import os, json, random, numpy as np, torch
from transformers import set_seed

# 1) Set seeds
seed = 1234
set_seed(seed)
random.seed(seed)
np.random.seed(seed)
torch.manual_seed(seed)

# 2) Save run config
run_cfg = {
  "seed": seed,
  "model": "distilbert-base-uncased",
  "lr": 2e-5,
  "epochs": 2,
  "max_length": 256
}
os.makedirs("./ckpt-meta", exist_ok=True)
with open("./ckpt-meta/run_config.json", "w") as f:
    json.dump(run_cfg, f, indent=2)

# 3) After training, save tokenizer + model
# tokenizer.save_pretrained("./ckpt-meta")
# model.save_pretrained("./ckpt-meta")

# 4) Keep a frozen copy of validation predictions for later diffing
# np.save("./ckpt-meta/val_preds.npy", preds)

Goal: make it easy to recreate, compare, and audit runs.

Drills and exercises

  • Run a zero-shot baseline on your dataset; record accuracy/F1 and a 2–3 sentence error analysis.
  • Fine-tune a small encoder for classification; sweep learning rates [1e-5, 2e-5, 5e-5] and compare results.
  • Implement NER with proper subword label alignment; verify no label leakage in padding tokens.
  • Fine-tune a T5 model on a small summarization subset; compute ROUGE-1/2/L.
  • Repeat an experiment with the same seed and confirm near-identical metrics and predictions.
  • Apply LoRA to a causal LM and measure GPU memory vs full fine-tuning.

Common mistakes and debugging tips

Mistake: Misaligned labels in token tasks

Symptoms: poor F1, warnings about ignored indices. Fix: use word_ids to map word-level labels to subwords; set -100 for non-first subword tokens or follow your scheme consistently.

Mistake: Overfitting during fine-tuning

Symptoms: training accuracy climbs while validation stalls. Fix: lower learning rate, add weight decay, increase dropout, early stop, or freeze lower layers.

Mistake: Truncating important content

Symptoms: seq2seq outputs miss key info. Fix: increase max_length for inputs, use sliding window or Longformer/LED for long docs.

Mistake: Non-reproducible results

Symptoms: metric swings across runs. Fix: set global seeds, fix data splits, log hyperparams, save checkpoints and predictions, control data shuffling.

Debugging playbook
  • Sanity-check on 100 samples; ensure loss decreases.
  • Overfit a tiny subset (e.g., 64 examples) to near-zero loss; if it fails, inspect data/labels.
  • Print a few decoded inputs/labels to verify truncation and tokenization.
  • Log class distribution; consider class weights or resampling if imbalanced.
  • Use gradient clipping (e.g., 1.0) to stabilize training.

Mini project: Unified customer feedback assistant

Build an end-to-end pipeline:

  • Task 1: Classify feedback into categories (bug, feature, praise, urgent).
  • Task 2: Extract entities (product, version, platform) with NER.
  • Task 3: Generate a one-sentence summary or suggested reply.

Requirements:

  • Start with a zero-shot baseline; then fine-tune for each task.
  • Apply LoRA to reduce compute for the generation model.
  • Save seeds, configs, and checkpoints; rerun to verify reproducibility.
  • Deliver a short report with metrics (accuracy/F1/ROUGE) and 5 example outputs.
Implementation hints
  • Use an encoder (DistilBERT/MiniLM) for classification and NER; T5-small or BART-base for summarization.
  • Share a single tokenizer per model family when possible; pin versions.
  • Keep inference batch sizes small to meet latency targets.

Practical projects

  • Support ticket triage: intent classification + NER for routing.
  • Meeting notes summarizer: seq2seq summarization with length control.
  • FAQ assistant: few-shot prompting baseline, upgraded to fine-tuned retrieval-augmented generation.

Subskills

Model Families: BERT, GPT, T5

Understand encoder vs decoder vs encoder–decoder and their trade-offs.

Choosing Base Model For Task

Balance accuracy, size, latency, and licensing constraints.

Fine-Tuning For Classification

Build robust text classifiers with evaluation and regularization.

Fine-Tuning For Token Tasks (NER)

Handle subword alignment, span reconstruction, and masking.

Fine-Tuning For Seq2seq Tasks

Prepare inputs/targets, generation configs, and metrics.

Prompting Versus Fine-Tuning Tradeoffs

Prototype quickly; fine-tune when you need accuracy, control, or privacy.

Parameter-Efficient Tuning (LoRA)

Adapt large models on modest hardware with minimal memory.

Managing Checkpoints And Reproducibility

Lock seeds, save configs, and make runs auditable.

Next steps

  • Choose one of the practical projects and scope a 1–2 week MVP.
  • Create a reproducible run template that sets seeds, logs hyperparams, and saves checkpoints.
  • Attempt LoRA on a model at least 2Ă— larger than your baseline to experience the trade-offs.

Transformer Models And Fine Tuning — Skill Exam

This exam checks your readiness to apply transformer models and fine-tuning in real projects. You can take it for free. Anyone can attempt it; if you are logged in, your progress and best score will be saved.Rules: 15 questions, single- and multi-select. Passing score is 70%. You can retake the exam anytime.

15 questions70% to pass

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