Retrieval-Augmented Generation (RAG)

Enhancing LLM responses with external knowledge through document retrieval

Give Your LLM a Knowledge Base

Retrieval-Augmented Generation (RAG) combines the power of large language models with external knowledge sources. Instead of relying solely on what the model learned during training, RAG retrieves relevant information from your documents, databases, or other sources and includes it in the prompt—dramatically improving accuracy and reducing hallucinations.

What is RAG?

RAG is a technique that enhances LLM responses by retrieving relevant context from external sources before generating an answer. Instead of asking the LLM to answer from memory alone, you:

  1. Convert your documents into searchable chunks (usually with embeddings)
  2. Retrieve relevant chunks based on the user's question
  3. Include those chunks in the prompt as context
  4. Let the LLM generate an answer based on the retrieved information

This approach bridges the gap between the LLM's general knowledge and your specific, private, or up-to-date information.

Why Use RAG?

Up-to-Date Information

LLMs have a knowledge cutoff date. RAG lets you include current information, recent documents, or real-time data.

Private/Proprietary Data

Access your internal documents, company policies, or proprietary information that wasn't in the LLM's training data.

Reduced Hallucinations

By grounding responses in retrieved documents, you reduce the chances of the LLM making up information.

Citations & Traceability

You can cite which documents or sections the answer came from, making responses more trustworthy and auditable.

How RAG Works: The Technical Flow

1

Document Preprocessing

Break your documents into smaller chunks (typically 200-1000 tokens each). Convert each chunk into an embedding vector using a model like OpenAI's text-embedding-ada-002 or open-source alternatives. Store these embeddings in a vector database like Pinecone, Weaviate, Chroma, or FAISS.

# Example: Chunking a document
chunks = split_document(document, chunk_size=500)
embeddings = embed_model.encode(chunks)
vector_db.store(embeddings, metadata=chunks)
2

Query Processing

When a user asks a question, convert their question into an embedding using the same model. Search the vector database for the most similar document chunks (using cosine similarity or other distance metrics).

# Example: Retrieving relevant chunks
query_embedding = embed_model.encode(user_question)
results = vector_db.search(query_embedding, top_k=5)
3

Context Injection

Take the top N most relevant chunks and insert them into your prompt as context. This gives the LLM the information it needs to answer accurately.

Context: {retrieved_chunks}

Based on the context above, answer the following question:
{user_question}
4

LLM Response Generation

The LLM reads the context and generates a response grounded in the retrieved documents. The response is more accurate because it's based on specific information rather than general knowledge.

Basic RAG Prompt Template

Use this template structure when implementing RAG:

You are a helpful assistant that answers questions based on provided context.

CONTEXT:
{retrieved_document_chunk_1}

{retrieved_document_chunk_2}

{retrieved_document_chunk_3}

INSTRUCTIONS:
- Answer the question using ONLY information from the context above
- If the context doesn't contain enough information, say so
- Cite which section of the context you used (e.g., "According to Document 2...")
- Do not make up or infer information not present in the context

QUESTION:
{user_question}

ANSWER:

Best Practices for RAG Implementation

Chunk Size Matters

Too small (< 100 tokens): You lose context and may need many chunks. Too large (> 1000 tokens): Less precise retrieval and wastes context window. Sweet spot is typically 300-600 tokens per chunk with 10-20% overlap between chunks.

Hybrid Search

Combine semantic search (embeddings) with keyword search (BM25) for better results. Semantic search finds conceptually similar content while keyword search catches exact matches. A weighted combination often works best.

Metadata Filtering

Store metadata with your chunks (document source, date, category, author). Filter by metadata before semantic search to narrow down the search space and improve relevance.

Re-Ranking

Retrieve more chunks than you need (e.g., top 20), then use a more sophisticated re-ranker model to select the truly most relevant 3-5 chunks. This improves precision significantly.

Handle No-Answer Cases

Explicitly instruct the LLM to say "I don't have enough information to answer this" when the retrieved context is insufficient. This prevents hallucinations.

Monitor & Iterate

Track which chunks are retrieved and whether they're relevant. Log user feedback. Adjust chunking strategy, retrieval parameters, and prompts based on real usage patterns.

Common RAG Pitfalls

  • Poor chunking strategy: Breaking mid-sentence or splitting related content reduces retrieval quality
  • Ignoring embedding model choice: Different models have different strengths; test multiple options
  • Overloading context: Including too many irrelevant chunks wastes tokens and confuses the LLM
  • Not handling document updates: Stale embeddings lead to outdated answers; implement update mechanisms
  • Forgetting query transformation: Sometimes rephrasing or expanding the user's question improves retrieval

Popular RAG Tools & Frameworks

LangChain

Comprehensive framework with document loaders, text splitters, vector stores, and retrieval chains. Great for rapid prototyping.

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LlamaIndex

Specialized data framework for LLM applications with advanced indexing and retrieval strategies. Excellent for complex data structures.

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Pinecone

Managed vector database optimized for production RAG deployments. Handles billions of vectors with low latency.

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Weaviate / Chroma

Open-source vector databases you can self-host. Great for privacy-sensitive applications or when you need full control.

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When Should You Use RAG?

RAG is ideal when:

  • You need to query large document collections (technical docs, knowledge bases, research papers)
  • Your information changes frequently and you can't afford to retrain the model
  • You need to cite sources and provide transparent answers
  • You're working with proprietary or confidential data that can't leave your infrastructure

Consider alternatives when: You need the LLM to reason abstractly without specific context, you're doing creative generation, or your use case needs sub-100ms response times (retrieval adds latency).