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Chapter 0314 min ยท 170 XP

RAG & knowledge systems

Most 'the AI is wrong' bugs are retrieval bugs.

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Retrieval-Augmented Generation grounds the model in your data. The hard part isn't calling an LLM โ€” it's getting the right chunks in front of it. Master the retrieval pipeline and you fix the majority of quality complaints.

Key ideas

  1. 1

    RAG = retrieve relevant context, then generate grounded on it. Quality is bounded by retrieval quality.

  2. 2

    The pipeline: ingest โ†’ chunk โ†’ embed โ†’ store โ†’ retrieve (often hybrid keyword + vector) โ†’ re-rank โ†’ assemble context โ†’ generate โ†’ cite.

  3. 3

    Chunking strategy matters enormously: too big wastes context and buries the answer; too small loses meaning. Chunk on structure, keep metadata.

  4. 4

    Hybrid search (BM25 + vector) + a re-ranker beats pure vector search for most enterprise corpora.

  5. 5

    Evaluate retrieval separately from generation (recall / precision / faithfulness). Add citations so answers are verifiable โ€” essential in a regulated setting.

Where RAG breaks (and how to fix it)

  • Bad chunking โ†’ answer is split across chunks or buried. Fix: structure-aware chunks + overlap + metadata.
  • Pure vector misses exact terms (codes, names). Fix: hybrid search + re-ranking.
  • Stale/duplicated data โ†’ wrong but confident answers. Fix: ingestion hygiene, dedup, freshness.
  • No grounding check โ†’ hallucination. Fix: faithfulness evals + require citations.

For a regulated insurer

  • Respect data boundaries: index only data the user is allowed to see; enforce access control at retrieval time.
  • Keep PII out of embeddings/logs where possible; know where the vector store lives (data residency).
  • Citations + source links make answers auditable and build trust with risk/compliance.

Watch

What is Retrieval-Augmented Generation (RAG)?IBM Technology
โ–ถAdvanced RAG: hybrid search & re-rankingFind it on YouTube โ†’

Reading checkpoint

Finished the ideas above? Bank the reading progress before applying them.

Do the work

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Test yourself

Question 1 / 3

A RAG system gives a confidently wrong answer. Where do you look FIRST?

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