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2026-04-20

RAG — what it is and why your business needs it

Retrieval-Augmented Generation lets AI answer based on your documents. No hallucinations, with source citations.

RAG = AI + your knowledge base. The model doesn't make things up — it cites specific fragments of your documents, offers, policies and instructions.

How it works: 1) split docs into chunks, 2) convert to vectors (embeddings), 3) store in a vector DB, 4) retrieve closest chunks for a query, 5) LLM answers based on them with citations.

Use cases: internal HR chatbot, support backed by docs, legal assistant, sales knowledge base, product FAQ.

Stack: OpenAI / Cohere embeddings + Pinecone / Supabase pgvector / Qdrant + LangChain / LlamaIndex / custom.

Benefit: employees stop hunting SharePoint for 20 minutes — they ask AI and get an answer with a source link in 3 seconds.

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