What is RAG, and why isn’t an LLM alone sufficient?

Combine generative AI with your internal enterprise data—structured sources such as knowledge bases, data warehouses (DWH), and data lakes, or unstructured sources like PDFs and ticket systems. Retrieval-augmented generation (RAG) integrates a language model (LLM) with intelligent semantic search, retrieving relevant and current information in real time from your internal systems. Your AI thus delivers answers with traceable sources and timestamps—ensuring transparency instead of speculation.

How does RAG work technically?

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Query vectorization

User inputs are converted into semantic vectors.

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Retrieval from internal sources

Relevant content is identified via vector search (e.g., FAISS, Weaviate) across structured and unstructured sources like PDFs, CRM data, and wikis.

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Context enrichment

Retrieved content is injected into the language model's context.

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Answer generation

The LLM generates informed responses based on enriched context.

What is RAG — and why isn't an LLM alone sufficient?

Combine generative AI with your organization's internal data—whether structured in knowledge bases, Data Warehouses (DWH), and Data Lakes, or unstructured in documents like PDFs or ticketing systems. Retrieval-Augmented Generation (RAG) connects a language model (LLM) with an intelligent semantic search that integrates real-time, relevant, and current information from your internal sources. As a result, your AI systems provide responses with verifiable source references and timestamps—they don't speculate, they validate.

Early success stories
Thomson Reuters: Significant reduction in legal databases errorsStanford University: Proven reduction of AI hallucinations in legal contextsNVIDIA: Improved customer satisfaction through context-aware responses

Key business benefits

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Sensitive data stays within your organization
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Answers include traceable source references
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Reduced AI hallucinations
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No extensive fine-tuning required
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Rapid deployment and measurable ROI

Real business value of RAG

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data integration

Connect your enterprise data to language models without retraining.

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Knowledge management & internal search

Reliable real-time answers from all internal data sources.

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Dynamic automation based on enterprise data

RAG forms the foundation for smart automation within your architecture.

Get started now – with a specific RAG use case

Curious how RAG can benefit your organization? Let’s define a use case together—from concept to operational 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 RAG

What exactly is retrieval-augmented generation (RAG)?

RAG combines language models (like GPT) with semantic search of internal enterprise data to deliver accurate, up-to-date, and source-based AI responses.

How does RAG differ from a classic LLM?

Traditional LLMs rely on pre-trained knowledge, which may be outdated or generic. RAG enhances them with real-time, enterprise-specific information.

Can RAG handle sensitive internal data?

Yes. RAG is deployed within your IT landscape, keeping sensitive data internal and compliant with security and data protection standards.

Which enterprise systems can RAG integrate with?

RAG integrates with:

• CRM systems (e.g., Salesforce, HubSpot)
• ERP systems (e.g., SAP, Microsoft Dynamics)
• Knowledge platforms (e.g., Confluence, SharePoint)
• Cloud storage (e.g., AWS, Azure)
• Document management systems (DMS)
• APIs and custom databases

Can RAG be integrated into existing chatbots?

Yes. RAG works seamlessly with platforms like Microsoft Teams, Slack, or internal portals—providing real-time, data-driven responses that enhance decisions and user experience.