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The widespread adoption of large language models (LLMs) has led to increased expectations for factual accuracy. However, LLMs often generate incorrect answers with confidence. A notable example is when users query general-purpose models like OpenAI’s “gpt-4o” or DeepSeek’s “DeepSeek-V3” about recent events or niche topics; they may decide not to respond or provide fabricated yet convincing responses. The leading industry solution to mitigate this issue is Retrieval-Augmented Generation (RAG), introduced in Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks (Lewis et al., 2020). RAG enhances LLMs by integrating external retrieval, ensuring more reliable and factual outputs while improving response contextuality and robustness.

Just like how a human is more likely to give a wrong answer when lacking information, AI models are more likely to make mistakes and hallucinate when they are missing context. For a given application, the model’s instructions are common to all queries, whereas context is specific to each query. By incorporating retrieval mechanisms, RAG enables LLMs to interact with real-time information, improving applications in search engines, customer support, academic research, and business intelligence. Unlike traditional search engines, which rely on keyword-based ranking, RAG synthesizes knowledge dynamically, allowing AI-driven solutions to be more adaptable and responsive. This chapter explores RAG’s framework, applications, implementation, security considerations, and future trends.