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What Are RAG Models? Complete Guide to Retrieval-Augmented Generation

Understand Retrieval-Augmented Generation (RAG) models: how they work, why they matter for enterprise AI, and how to implement them effectively.

January 13, 2026
15 min
Guide
AI Guides & Education

What is RAG?

Retrieval-Augmented Generation (RAG) is an AI architecture that combines the power of large language models with external knowledge retrieval. Instead of relying solely on trained knowledge, RAG models fetch relevant information at query time.

How RAG Works

  1. Query Processing: User question is analyzed
  2. Retrieval: Relevant documents are fetched from knowledge base
  3. Augmentation: Retrieved context is added to the prompt
  4. Generation: LLM generates response using context

RAG vs Fine-Tuning

Aspect RAG Fine-Tuning
Knowledge Updates Instant Requires retraining
Cost Lower Higher
Transparency Can cite sources Black box

Enterprise Applications

  • Internal knowledge search
  • Customer support with documentation
  • Policy compliance checking
  • Research assistance

Implementation Guide

Start with high-quality document indexing. RAG is only as good as its retrieval system.

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