Custom NER Dramatically Outperforms Open-Source in Domain-Specific Text

Fine-tuned named entity recognition on pharma-domain market research transcripts vs. leading open-source pre-trained models:

Entity TypeCustom (Precision/Recall)Open-Source (Precision/Recall)
Person0.98 / 0.990.47 / 0.65
Location1.00 / 0.980.22 / 0.90
Organization0.98 / 0.980.06 / 0.45
Drug0.99 / 0.990.86 / 0.58
Disease0.99 / 0.990.90 / 0.96

The gap for Person entities is striking: 0.98 vs 0.47 precision. Open-source models generate massive false positives when domain-specific vocabulary (protein names, gene markers like “HER-2-negative”) gets confused with person names.

The lesson: for high-stakes NER tasks (PII redaction, compliance), off-the-shelf models aren’t enough. Domain-specific fine-tuning is essential, and the investment pays off dramatically.

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