Tim Carambat introduces a groundbreaking feature in AnythingLLM that enables users to create fine-tuned models without any coding, leveraging their own chats and documents. This innovation allows for the running of models locally using Ollama and LMStudio, ensuring privacy and avoiding vendor lock-in. The process is straightforward: users can export their data from AnythingLLM and utilize it to fine-tune models according to their specific needs. The video walks through the steps of downloading AnythingLLM, gathering training data, and the distinctions between fine-tuning and retrieval-augmented generation (RAG). Carambat emphasizes that while fine-tuning can enhance model performance, it requires quality data to yield effective results. He explains the importance of balancing fine-tuning with RAG to create a powerful AI system. The tutorial guides viewers through the ordering and installation of a fine-tuned model, demonstrating how to upload datasets and test the output of the newly created model. The video concludes with a demonstration of the fine-tuned model’s capabilities, showing significant improvements in response accuracy compared to the base model. With this feature, users can harness the power of AI without the complexities typically associated with model training, making advanced AI technology accessible to a broader audience.