RAG (Retrieval-Augmented Generation)

Friendly Description: RAG is a way of giving an AI an open book during the test. Instead of relying only on what it remembers from training, the AI first looks up relevant information in a trusted set of documents, then uses what it finds to answer your question. This makes responses much more accurate and lets the AI work with information it has never seen before.

Example: A company might put all its internal handbooks into a system that an AI can search. When an employee asks, "How many vacation days do I get after 5 years?" the AI uses RAG to look up the relevant policy paragraph, reads it, and gives an answer based on what the document actually says, sometimes even quoting the source.