What is RAG and Why Do You Need It?
Imagine you have hundreds of pages of technical documentation, contracts, or scientific articles. Getting a regular AI assistant to answer based on this data is no trivial task. An LLM (Large Language Model) doesn't store your internal documents, and if you simply "feed" it the text, it might forget details or start hallucinating. The solution is RAG (Retrieval Augmented Generation).
RAG systems work in two stages: first, they find relevant fragments from your knowledge base, then they pass them to the language model as context. This allows the AI to answer accurately, referencing specific documents, without retraining the model from scratch. In this guide, we'll break down how to build such a pipeline: from chunking to vector search.
RAG Pipeline Architecture
Any RAG system consists of two key processes: indexing and search with generation. Let's go through them in order.
Stage 1: Document Indexing
Indexing is preparing your data for search. The main steps:
- Chunking — splitting documents into small fragments (chunks). Chunk size affects search quality: too small loses context, too large reduces accuracy. The optimal size is 256–512 tokens (roughly 200–400 words).
- Embedding Generation — each chunk is turned into a vector (embedding) using an encoder model (e.g.,
text-embedding-ada-002). A vector is a numerical representation of the text's meaning. - Storage in a Vector Database — vectors and original texts are loaded into a specialized store (Pinecone, Weaviate, Qdrant). The database indexes vectors for fast search by cosine similarity.
| Parameter | Recommendation | Why It Matters |
|---|---|---|
| Chunk size | 256–512 tokens | Balance between context and accuracy |
| Embedding model | Ada-002, BGE | High semantic accuracy |
| Vector database | Pinecone, Qdrant | Fast search even with millions of vectors |
Stage 2: Search and Answer Generation
When a user asks a question:
- Query Embedding — the question is also turned into a vector using the same model.
- Vector Search — the system finds chunks in the database with the most similar vectors (usually top-5 or top-10).
- Prompt Formation — the found chunks are inserted into a template along with the question. Example: "Answer the question using only the following documents: [chunks]."
- Answer Generation — the LLM (GPT-4, Claude, Llama) produces an answer strictly based on the provided data.
How to Choose Optimal Components
1. Chunking Strategy
Simple paragraph splitting often leads to context loss. It's better to use semantic chunking — fragmenting text along semantic block boundaries (e.g., using langchain or semantic-text-splitter). For tables and lists, use recursive chunking with delimiters.
2. Embedding Models
Modern embedding models, such as text-embedding-3-large from OpenAI or bge-large from BAAI, produce vectors with dimensions of 1024–3072. The choice depends on the language of the data: for Russian, intfloat/multilingual-e5-large works well.
3. Vector Databases: Comparison
| Database | Search Speed | Indexing Flexibility | Price |
|---|---|---|---|
| Pinecone | High | Medium | Paid (SaaS) |
| Qdrant | High | High | Free self-hosted |
| Weaviate | Medium | High | Open-source + SaaS |
| Chroma | Low | Medium | Open-source only |
For production systems with millions of vectors, choose Pinecone or Qdrant. For prototypes, Chroma will do.
Example: Pipeline for Contract Search
Suppose you have 5000 contracts in PDF. The pipeline:
- Text Extraction — use
PyMuPDForpdfplumberfor parsing. - Chunking — each contract is split into chunks of 300 tokens with an overlap of 50 tokens (to avoid cutting off terms).
- Embeddings — generate via
OpenAI Embeddings API.
4.
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