GLOSSARY TERM // Knowledge Systems
What is Retrieval-Augmented Generation (RAG)?
Plain-English Explanation
Out of the box, a language model does not know your company's internal SOPs, current pricing, or project history. RAG connects the model to a permission-controlled search index of your approved files. When someone asks a question, the system retrieves the relevant paragraphs first and instructs the model to summarize those exact passages and cite the source file.
Why It Matters to Business Operations
RAG dramatically reduces fabrications (hallucinations), keeps company knowledge current without expensive model retraining, and lets employees verify the exact source document.
Human Oversight Requirement
Users should always check the cited source document before applying an answer to a high-stakes client or operational decision.