What Is Retrieval-Augmented Generation (RAG)?

RAG integrates retrieval systems with LLMs, enhancing responses with real-time, accurate data from external sources.
12 min read
What is Retrieval Augmented Generation (RAG) blog image

In this article, you’ll learn all about RAG, including its role in enhancing LLM responses and its components.

What Is RAG

RAG is a machine learning (ML) technique that takes traditional LLMs one step further by linking them with search (aka retrieval) systems. Instead of just relying on their fixed training data, RAG-powered models can tap into external sources—like databases, documents, or even the web—to find relevant information and enhance the quality of their responses. This mix of on-the-spot information retrieval and language generation makes responses more accurate and up-to-date.

Retrieval + Generation

RAG works by combining three parts: a search or retrieval system, the language model itself, and a process that combines the two. When asked a question, the RAG system first uses the retrieval component to find relevant data outside the language model’s training dataset. Then, the original prompt is modified to augment it with this data. The updated prompt is passed to the generation component (the LLM), which uses both its own learned patterns and fresh content to deliver a response. This way, the output isn’t just a product of preexisting training—it’s grounded in real, verified information pulled directly from sources.

RAG cleverly combines the power of retrieval and generation, offering an intelligent fix for the shortcomings of traditional language models. It provides more reliable, accurate answers and can adapt to different topics, making it ideal for applications where information needs to be current or specialized.

Why LLMs Need Augmentation

While LLMs are impressive at generating humanlike responses, they’re not without flaws.

Risk of Hallucinations

One of LLMs’ biggest challenges is the risk of hallucination, where the model generates convincing but incorrect information. This happens because LLMs are trained on large, static datasets and lack real-time access to updates or facts outside their training window.

On top of that, if you look closely, LLMs aren’t problem-solving machines; they are text-completion models. Their end goal is to generate a response that best resembles the correct response to the given prompt; the response doesn’t necessarily need to be correct. Because they do not use deterministic algorithms to arrive at a response, they are bound to hallucinate at some point.

Information Verification

Additionally, LLMs can’t verify new information or check their responses against live sources, making it easy to miss or misrepresent the facts.

Knowledge Cutoff

Another limitation is the knowledge cutoff. Because LLMs are trained on data that goes only up to a certain point, they inherently lack awareness of events or discoveries that happen after the cutoff.

Credible Sources

LLMs also struggle to cite credible sources, which can leave users questioning the accuracy of their responses. Without access to up-to-date sources or a way to validate the information, these models can struggle with trustworthiness.

RAG: The Solution to LLMs’ Limitations

As mentioned previously, RAG is designed to address LLMs’ limitations by grounding its responses in real, up-to-date data.

Fresh Info from Relevant Sources

When an LLM receives a query, instead of relying solely on its static training data, RAG enables it to pull in fresh information from contextually relevant external sources. This setup effectively reduces the risk of hallucinations by basing responses on actual documents and data. Because it actively queries external sources, RAG can answer questions involving recent events, new technologies, or any information that a standard LLM would miss due to its knowledge cutoff. For example, in a customer support scenario, RAG can retrieve the latest policy updates from a knowledge base, ensuring responses are in line with the company’s current documentation.

Enhanced Transparency

In addition to accuracy, RAG enhances transparency with sources for its responses. Because it pulls data from specific, relevant documents, it provides a clearer trail of reasoning, allowing users to see where the information is coming from. This verifiability not only improves user trust but also makes RAG-equipped models more useful in fields like legal and financial services, where users require clear, well-backed answers.

Key Use Cases of RAG

RAG shines in applications where accurate, up-to-date information is critical, especially in quickly changing fields. Here are some of the most popular use cases of RAG.

Customer Support Automation

RAG transforms customer support by tapping into a company’s knowledge base and help articles. It delivers instant answers to customer’s queries, pulling from the most up-to-date docs, product info, and troubleshooting tips. This means customers get accurate responses customized to their specific needs—without overwhelming support agents with routine questions.

Legal and Financial Services

These sectors require information that is not only precise but also traceable to credible sources. A legal professional, for example, can use RAG to retrieve relevant case law or regulations when forming an opinion. Financial analysts might use RAG to pull in current market reports or data, providing clients with insights that are both timely and backed by concrete information.

Research and Content Creation

Writers, journalists, and researchers can use RAG to pull accurate references from trusted sources, simplifying and speeding up the process of fact-checking and information gathering. Whether drafting an article or compiling data for a study, RAG makes it each to quickly access relevant and credible material, allowing creators to focus on producing high-quality content.

Conversational Agents and Chatbots

By integrating RAG, conversational agents and chatbots can deliver more accurate, contextually aware answers, improving user experience. For instance, a healthcare chatbot could retrieve information about recent medical studies, or a tech support bot could pull the latest device firmware update details. RAG’s ability to combine live data retrieval with language generation enhances both the quality and reliability of responses.

Learn more about building a RAG chatbot using GPT models.

Challenges and Limitations of RAG

While RAG adds significant value to language models, it also comes with its own set of challenges.

Quality and Accuracy

One major issue is the quality and accuracy of the information retrieved to augment the prompt. Since RAG depends on external sources, the model’s response is only as good as the data it pulls in. The generated response could still fall short if the retrieval system brings back irrelevant or inaccurate documents. Ensuring high-quality retrieval is important and often requires fine-tuning and regular updates to keep data relevant and accurate.

Computation Cost and Complexity

Other challenges include the computational cost and complexity involved in running a RAG system. Unlike standalone LLMs, RAG needs both a powerful retrieval system and a model capable of integrating the retrieved information easily, which can be resource-intensive. This increased computational load can slow down response times, especially if large amounts of data need to be searched or processed in real time. Organizations implementing RAG often need to balance accuracy with performance, finding ways to set up retrieval without compromising on speed.

RAG’s success depends heavily on access to structured, reliable data sources. The retrieval system may struggle to pull in useful information without trustworthy and well-organized external databases. Additionally, not all data sources are easily accessible or affordable, which can be a barrier for smaller organizations.

Despite these challenges, with careful setup and reliable data sources, RAG can still offer transformative benefits for a wide range of applications.

RAG Implementation in Practice

Setting up an RAG system requires connecting a language model with an effective retrieval mechanism to allow access to external data.

The process begins by establishing a high-level architecture that combines a search system with the language model. When a user submits a query, the retrieval system searches external sources for relevant information and then sends this information to the LLM together with the prompt, which generates a response based on both its own knowledge and the retrieved data. This approach ensures that responses are both informed and contextually grounded in recent, reliable information.

A rough overview of how a RAG system is designed

RAG Implementation Requires Specific Tools and Frameworks

In practical terms, implementing RAG requires specific tools and frameworks that can handle retrieving information, processing it, and generating the response. Libraries like LangChain and Haystack are popular choices as they provide ready-made components for integrating retrieval into the response-generation process.

For instance, LangChain offers tools to structure promptsretrieve data, and pipeline the results directly into an LLM, while Haystack specializes in high-performance retrieval, allowing you to pull information from databases, documents, or even the web. You can customize these tools to work with different data sources, making them highly adaptable for various RAG applications.

RAG Is a Framework Built on Top of an Existing LLM

If you look at it from afar, unlike techniques like fine-tuning, RAG does not affect the structure or constituents of your primary LLM. It’s merely a framework built on top of your existing LLM that helps improve the quality of the prompts you send to the model. Some argue that RAG is just glorified prompt engineering, and you can see where they’re coming from if you take a look at the original prompt that goes into a RAG system and compare it with the augmented prompt it generates before generating the final response. Here’s a quick (and extremely simplified) example to help you understand this better:

  • Raw prompt

What are the latest climate change impacts on coral reefs?

  • Response (from an LLM without RAG)

Coral reefs are affected by rising temperatures and ocean acidification, which cause coral bleaching and disrupt marine ecosystems.

  • Augmented prompt (with RAG)

Using the retrieved data: ‘A 2024 report from NOAA highlights that ocean warming has caused mass coral bleaching events in the Caribbean and Pacific, leading to a 40% reduction in coral cover in affected regions. Acidification is also weakening coral skeletons, making them more vulnerable to storm damage,’ answer the following: What are the latest climate change impacts on coral reefs?

  • Response (from an LLM with RAG)

Recent NOAA reports indicate that ocean warming is driving mass bleaching events, especially in the Caribbean and Pacific, with coral cover declining by 40% in some areas. Acidification is also damaging coral skeletons, increasing their vulnerability.

While this seems to support the argument, it’s important to emphasize that getting the LLM the right bit of data in the context of the original query is the focus of the RAG setup. Depending on the data store, your search component could be anything as simple as an SQL query to something as complex as a Google search and web crawling. Then, once you have the data, you need to correctly and efficiently prioritize and summarize the data before appending it to the prompt. These two steps make RAG much more complex than potentially any prompt engineering technique.

RAG Implementation Requires a Lot of High-Quality Data

When it comes to the data store itself, most RAG systems need one, and it helps if the large amount of data is accurate, up-to-date, and domain-specific. Creating and maintaining such datasets is time-consuming and difficult. Public data providers, like Bright Data, can make it easier by supplying vast datasets that ensure the retrieval system is working with fresh, high-quality information.

These sources can include everything from web data to structured datasets, which greatly enhances the model’s relevance. By integrating with Bright Data datasets, RAG models have access to the latest information, which not only improves response accuracy but also helps in fields where real-time data is essential, such as weather systems or logistics and supply chain management.

How Bright Data Can Help with Public Data Retrieval

As a provider of high-quality public datasets from across the web, Bright Data can be a valuable resource for RAG systems. With RAG’s dependence on high-quality, up-to-date information, Bright Data datasets make it possible to pull in relevant content for diverse applications, from current events to niche research.

Structured Data across Various Sectors

Bright Data datasets include structured data across sectors, such as e-commerce, financial markets, and news, which can be integrated into RAG systems to improve the model’s accuracy and relevance. This can help ensure that LLMs can respond accurately to questions requiring recent or industry-specific information, which is critical for areas like customer support and competitive analysis.

Access and Filter Public Data at Scale

If you’re looking to gather data from the web on your own, the Bright Data API and extensive proxy infrastructure can help you access and filter public data on a large scale while maintaining compliance with data usage policies. This can come in very handy for RAG applications that require dynamic retrieval of information. For instance, a financial services RAG setup could continuously pull updated stock market data or regulatory news, enhancing the model’s ability to provide real-time insights.

Using Bright Data as the data source in your RAG system takes away the burden of having to maintain your data store, allowing you to focus on refining prompt augmentation and response generation.

Conclusion

RAG represents a significant advancement in the capabilities of LLMs, enabling them to overcome key limitations like knowledge cutoff and hallucination by incorporating real-time data from external sources. Through RAG, models can gain access to current, verified information, which enhances both the relevance and reliability of their responses. This technique transforms language models from static knowledge repositories into dynamic, contextually aware agents.

When you integrate high-quality, real-time data into RAG implementations, you can improve the accuracy, relevance, and trustworthiness of your AI applications. Whether in customer support, financial analysis, healthcare, or any other industry, the use of RAG can help significantly improve the end-user experience.

Bright Data helps develop RAG implementations more easily by offering a scalable solution for sourcing reliable, structured public data. With its extensive dataset offerings, Bright Data supports RAG systems in delivering accurate, up-to-date responses across various industries and applications.

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