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Glossary

Retrieval-Augmented Generation (RAG)

Retrieval-augmented generation (RAG) combines a search in your own documents with a language model: matching passages are found first and then passed to the model as the basis for its answer.

October 13, 2026RAGLLMKnowledge Management

A language model does not know a company's internal documents, neither the current price list nor the travel expense policy nor the manual for its own software. In addition, its knowledge ends with the cutoff of its training data. Retrieval-augmented generation, meaning generation extended by retrieval, solves this problem without retraining the model. The approach is now one of the most common ways to connect AI assistants with company knowledge.

How does retrieval-augmented generation work?

A RAG system works in two phases.

Preparation: Documents are read from their sources, for example from file shares, wikis, or ticketing systems, and split into smaller chunks. For each chunk, an embedding is calculated, that is, a series of numbers that represents its meaning. This data is stored together with information on source and permissions in a search index, often a vector database.

Query:

  1. A person asks a question, for example about the procedure for a vacation request.
  2. The system searches for the chunks that best match in content, often with a combination of semantic and keyword search.
  3. The chunks found are passed to the language model together with the question.
  4. On this basis, the model formulates an answer and ideally cites the sources.

Typical examples

What companies should keep in mind

How it differs

With fine-tuning, a model is further trained with your own data to adapt style, format, or technical language. For current and frequently changing knowledge, RAG is usually better suited, because documents can be replaced at any time without changing the model.

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