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RAG Explained: Why Your AI Needs Access to Real Business Data

David Kim
David Kim
Senior ML Engineer
March 10, 20246 min read
RAG Explained: Why Your AI Needs Access to Real Business Data

Large Language Models are incredibly powerful, but they have a fundamental limitation: their knowledge is frozen at the time of training. Enter RAG—Retrieval-Augmented Generation.

The Hallucination Problem

When LLMs don't have specific information, they often 'hallucinate'—generating plausible-sounding but incorrect responses. RAG solves this by grounding responses in your actual data.

How RAG Works

  • Document Ingestion: Your PDFs and wikis are indexed
  • Vector Embeddings: Text is converted for semantic search
  • Retrieval: Relevant chunks are retrieved for each query
  • Augmented Generation: The LLM generates using retrieved context

Want to see RAG in action? Book a demo to see how we can connect your AI to your business knowledge.

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