Retrieval-augmented generation is a technique that fetches relevant passages from your own documents at question time and hands them to the model, so its answer is grounded in your data instead of its training.
An off-the-shelf model does not know your pricing, your policies, or last week’s ticket. RAG fixes that without retraining anything: when a question comes in, the system searches your knowledge base, pulls the few most relevant chunks, and puts them in front of the model as context. The model then answers from those chunks.
This is how most "chat with your docs" and internal-support tools actually work. Done well it cuts hallucination sharply and lets you update the model’s knowledge by editing a document, not by paying for a training run.
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