BOVO Digital
Automation11 min read

Your AI is Dumb (And That's Normal): RAG Explained

Your AI knows everything about Napoleon but nothing about your business. Discover RAG (Retrieval Augmented Generation): the technique to make your AI intelligent on YOUR data.

Vicentia Bonou

Vicentia Bonou

November 23, 2025

Your AI is Dumb (And That's Normal): RAG Explained

Your AI is Dumb (And That's Normal) 🧠📉

You install ChatGPT or a local model.

You ask it a question about YOUR business.

It answers nonsense.

It's frustrating. But it's logical.

The AI knows everything about Napoleon and quantum physics.

But it knows NOTHING about your inventory, your customers, or your internal procedures.

To it, your business doesn't exist.

The Solution: RAG (Retrieval Augmented Generation)

This is the essential technique to make an AI "intelligent" on YOUR data.

Imagine a school exam.

Without RAG: The student must answer from memory (and invents if they don't know).

With RAG: The student is allowed to open the textbook to the right page to copy the exact answer.

How It Works (Triple Explanation)

1. Indexing (The Library)

In plain terms: We transform your PDFs, Excels, and emails into a giant, organized library.

Technique: We split text into "chunks" and transform them into vectors (numbers) in a vector database (Pinecone, Weaviate).

Business: All your knowledge becomes instantly accessible.

Concrete example:

# Splitting into chunks
chunks = split_text(document, chunk_size=500)

# Transforming into vectors
vectors = embed(chunks)  # [0.23, -0.45, 0.12, ...]

# Storing in vector database
vector_db.store(vectors, metadata=chunks)

2. Search (The Archivist)

In plain terms: When you ask a question, an archivist runs to find the 3 most relevant pages in the library.

Technique: Semantic search (cosine similarity) to find related concepts, not just keywords.

Business: We find the right info, even if the client uses different words than yours.

Concrete example:

# User's question
query = "What is the delivery time?"

# Transform into vector
query_vector = embed(query)

# Search for similar chunks
similar_chunks = vector_db.search(query_vector, top_k=3)
# Returns the 3 most relevant chunks

3. Generation (The Writer)

In plain terms: We give these 3 pages to the AI and tell it: "Answer the question using ONLY this info".

Technique: Injecting context into the LLM's system prompt.

Business: Precise, reliable responses without hallucinations.

Concrete example:

prompt = f"""
Context:
{similar_chunks[0]}
{similar_chunks[1]}
{similar_chunks[2]}

Question: {query}

Answer ONLY using the context above.
If the answer is not in the context, say "I don't know".
"""

response = llm.generate(prompt)

Why It's Vital for Your Business

Zero Hallucination: AI cannot invent prices or products that don't exist.

Up-to-date Data: No need to retrain the AI. Just update the PDF file.

Confidentiality: Your data doesn't go train public ChatGPT.

Concrete Case

A law firm was losing 4h/day searching for case law.

With a RAG system:

  1. They ask the question in natural language.

  2. The system scans 50,000 documents in 2 seconds.

  3. It outputs the answer with exact sources (Page 12, Paragraph 3).

Gain: 20h per week per lawyer.

The Truth About AI and Time

You're sold "Chat with PDF" tools in 1 click.

Reality: For a 3-page document, it works in 1 click.

For a 10 GB enterprise database with conflicts and updates? It's a complex engineering challenge. It doesn't happen in 5 minutes.

BUT...

Once the vector architecture is in place, AI can ingest and deliver infinite knowledge at superhuman speed.

It's the difference between a gadget and a major competitive advantage.


Additional Resources:

🛡️ Complete Guide: AI for Everyone I explain how to build a professional RAG system (not a toy): vector architecture, database choices, chunk optimization. 👉 Access the Complete Guide


Would You Like Your AI to Know Your Files by Heart? 👇

Tags

#RAG#AI#Retrieval Augmented Generation#Vector Database#LLM#Artificial Intelligence#Data#Business
Vicentia Bonou

Vicentia Bonou

Full Stack Developer & Web/Mobile Specialist. Committed to transforming your ideas into intuitive applications and custom websites.

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