What is RAG — and why is LLM alone not enough?

Combine generative AI with your internal company data — whether structured in knowledge databases, data warehouses (DWH), data lakes, or unstructured in documents such as PDFs or ticket systems. Retrieval-Augmented Generation (RAG) combines a language model (LLM) with an intelligent semantic search that integrates relevant and up-to-date information from your internal sources in real time. As a result, your AI systems provide answers with verifiable source and time stamp — they don't speculate, but prove.

How does RAG work technically?

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Vectorization of the request

The user input is converted into a semantic vector.

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Retrieval from internal sources

Similar content is found using a vector search (e.g. FAISS, Weaviate) from structured or unstructured data (e.g. PDFs, CRM data, wiki articles).

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context enrichment

The content found is given to the language model as an extended context (context injection).

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Response generation

The LLM generates a well-founded answer based on this contextual data.

What is RAG — and why is LLM alone not enough?

Combine generative AI with your internal company data — whether structured in knowledge databases, data warehouses (DWH), data lakes, or unstructured in documents such as PDFs or ticket systems. Retrieval-Augmented Generation (RAG) combines a language model (LLM) with an intelligent semantic search that integrates relevant and up-to-date information from your internal sources in real time. As a result, your AI systems provide answers with verifiable source and time stamp — they don't speculate, but prove.

First RAG successes in practice:
Thomson Reuters: Significantly fewer errors in legal databasesStanford University: Reduction of AI errors in the legal sector provenNVIDIA: Measurable higher customer satisfaction through contextual customer service answers

The most important advantages in business use

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Sensitive data remains in your company
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Verifiable answers with reference to the source
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Significant reduction in hallucinations
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No need for complex fine-tuning
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Faster go-live — faster ROI

Where RAG provides real added value in the company

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data integration

With the help of an RAGs, you can link your company data with the capabilities of language models without explicit training.

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Knowledge management & internal search

Reliable answers to questions directly from all internal data sources.

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Dynamic automation based on your company data

RAG systems are an integral part of the dynamic controls of modern automation architectures.

Start now — with a specific RAG use case

Would you like to know how RAG can be used specifically in your organization? Let's develop a use case together — from the idea to the first ready-to-use agent.

Foto von Thomas Howert von inics

Thomas Howert

BI consultant and AI expert

Test your own AI system in just two weeks!

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FAQs about retrieval augmented generation

What is retrieval augmented generation (RAG) exactly?

Retrieval-Augmented Generation combines language models (such as GPT) with a semantic search in your internal company data. This gives you AI-generated answers that are up-to-date, accurate and comprehensible — with a clear origin and reference to the source.

How does RAG differ from a classic LLM?

Classic language models answer questions exclusively with trained information, which is often outdated or unspecific. RAG, on the other hand, enhances every AI response with up-to-date, relevant information from your internal sources. This ensures significantly more accurate, reliable results in everyday business.

Does RAG also work with sensitive, internal data?

Yes RAG is integrated directly into your existing IT infrastructure so that sensitive data never leaves your company. Your data sovereignty is maintained and you meet the highest data protection, security and compliance requirements.

Which business systems can be connected to RAG?

RAG integrates seamlessly with a wide range of systems, including:

- CRM systems (e.g. Salesforce, HubSpot)
- ERP systems (e.g. SAP, Microsoft Dynamics)
- knowledge management systems (e.g. Confluence, SharePoint)
- cloud storage (e.g. AWS, Azure)
- document management systems (DMS)
- APIs and custom databases

Integration is carried out flexibly via proven interfaces, adapted to your professional and technical requirements.

Can RAG be integrated into existing chatbots?

Yes, RAG is easy to integrate with existing chatbot platforms such as Microsoft Teams, Slack or internal web portals. Users therefore always receive up-to-date, data-based answers directly from their corporate sources — for faster decisions and a significantly improved user experience.