RAG is a speed problem disguised as a relevance problem. If retrieval is slow or noisy, generation stalls and costs climb. Text generation in RAG systems relies on fast and accurate retrieval to produce high-quality outputs. The end-to-end response time is a key performance indicator for RAG systems, affected by retrieval time and inference speed. RAG can significantly improve chatbot performance by providing precise and timely responses based on context.
The fix is simple: smaller chunks, smarter queries, a reranker that earns its keep, and caches where they matter. In the RAG pipeline, embedding models, which convert both user queries and documents into numerical vectors, are used (these are also referred to as the embedding model). This process creates a vector representation for each input, enabling similarity search. Efficient indexing and rapid retrieval are achieved by using a query vector derived from the user's input to search the vector database.
Try Compute today
Pair your retriever with a dedicated vLLM endpoint on Compute. Choose a region close to users, stream tokens, and cap outputs. Measure TTFT/TPS while you iterate on chunking and rerankers.
Introduction to RAG
Retrieval Augmented Generation—or RAG—changes how AI answers your questions. It connects large language models with fast databases that store information as numbers. Here's what happens: when you ask something, RAG doesn't just rely on what the AI learned during training. It searches through current data to find relevant information, then uses both sources to give you a better answer.
The process works in three clear steps. First, documents get cleaned up and converted into number patterns that computers can search quickly. Next, when you ask a question, the system hunts through these patterns to find the most relevant information. Finally, the AI takes what it found and combines it with its existing knowledge to create your response. This approach means you get answers that stay current with new information. Your questions get responses that actually help, even when you're dealing with complex topics or large amounts of data.
Indexing: chunking, embeddings, and vector databases that help, not hurt
Chunk size. Start at 200–400 tokens with 10–20% overlap. Smaller chunks boost recall; larger chunks boost coherence. Tune with your eval set. Chunking works by grouping information into manageable units, which increases memory capacity and reduces decay or interference, improving recall and memory efficiency. Chunking has been shown to improve short-term memory recall and can aid memory training programs. Patients with Alzheimer's disease can benefit from chunking to improve their verbal working memory performance. The optimal size for chunks typically ranges from three to four items for enhanced efficiency in memory processing. Additionally, expertise in a domain can enable individuals to form larger chunks, thus improving memory recall efficiency.
Boundaries. Split on headings, bullets, and paragraphs to keep ideas intact. Avoid arbitrary character counts.
Normalise. Lowercase, strip boilerplate, and collapse whitespace; keep numbers and code formatting.
Metadata. Store source, section, language, timestamp, and access tags for filtering and audits.
Embeddings model. Pick one that handles your languages and domain. Test cosine distances on your own pairs; do not trust leaderboard gaps blindly. The embedding model maps text into a high-dimensional vector space, enabling similarity search based on vector representations.
Query planning: retrieve less, retrieve better
Retrieve less, retrieve better. Advanced search algorithms, including semantic search, are used to improve retrieval accuracy.
- Hybrid search. Combine BM25 (keyword) with vector results; merge by a simple weighted rank. Hybrid search combines traditional and semantic search algorithms to process the user query and given query more effectively, improving retrieval of relevant pieces.
- Filters first. Apply metadata filters before vector search to shrink candidate sets.
- K small, rerank strong. Start with k=20–50 candidates and feed the top 10–20 through a cross‑encoder reranker. Re ranking methods help select the most relevant chunks and relevant pieces for the model to process.
- Diversity. De‑duplicate near‑identical chunks; prefer one per section to avoid echo.
- Multi‑hop queries. If questions span documents, retrieve in two steps: plan → gather → answer.
Reranking that earns its cost
Cross‑encoders improve precision. Use them sparingly: Cross-encoders use similarity scores to rank retrieved documents and select the most relevant chunks.
- Batch requests to your reranker; they are heavier than retrieval.
- Cut at confidence. If the reranker scores fall off a cliff, pass fewer chunks to the LLM.
- Fallbacks. On reranker timeout, fall back to vector order and log an event.
- Measure token savings: fewer irrelevant chunks → shorter prompts → lower TTFT.
Caching layers that actually help
- Prompt cache. Canonicalise prompts (strip whitespace, normalise numbers). Cache short system prompts and common instructions. Caching prompts helps ensure the model consistently uses the provided context for generating responses.
- Retrieval cache. Key on (query hash + filters); expire on document updates.
- Answer cache. Only for deterministic, public questions. Add a TTL and invalidate on source change.
- KV‑cache at inference. Keep context compact so the decode batch stays large and tokens/second stays high.
Latency budgets and SLOs
- Budget split. As a rule of thumb for chat: retrieval + rerank ≤ 200–300 ms, TTFT ≤ 800 ms p95 in‑region. When working within these latency budgets, the process involves optimizing each step to reduce latency and manage computational costs.
- Parallelism. Run retrieval and pre‑processing in parallel where safe. Parallel processing is a key technique for reducing latency.
- Async enrichment. Heavy steps (summarise, cite) can follow the first answer. This approach helps control computational costs by deferring resource-intensive operations.
Evaluation metrics: quality and speed together
Build a small, versioned set (50–150 queries). Tracking these metrics is essential for evaluating the rag system's performance and identifying key factors that influence the quality and relevance of search results. Track: Mean Reciprocal Rank (MRR) assesses the quality of ranking by measuring how early the first relevant document appears in the ranked list. Normalized Discounted Cumulative Gain (nDCG) rewards highly relevant results appearing higher in the list and measures ranking quality in RAG systems. Answer semantic similarity compares the generated answer to a ground-truth answer using semantic similarity scores. Precision measures the proportion of retrieved documents that are actually relevant to the query.
- Recall@k and MRR for retrieval.
- Faithfulness: does the answer stick to sources?
- Groundedness: can you cite the exact chunk(s)?
- Latency: TTFT and full response time by route.
- Token use: prompt vs output tokens per request.
- Hallucination rate: measures how often the model generates factually incorrect or unsupported information. Fluency assesses how natural and readable the generated response is in RAG systems. Recall measures the proportion of relevant documents that were successfully retrieved from the entire knowledge base.
A/B rerankers and chunk sizes on the same eval. Promote only when both quality and latency improve or hold steady.
Operations: runbooks and observability
- Metrics. Request rate, TTFT, TPS, retrieval latency, reranker latency, prompt tokens, output tokens.
- Logs. IDs, counts, and source references; avoid raw text by default.
- Incidents. Drill on vector index rebuilds, reranker outages, and cache stampedes. Significant challenges can arise during data retrieval and processing the original query, especially during outages or large-scale updates.
- Data changes. On bulk updates, re‑embed in batches; keep two indices for blue/green swaps. Automated frameworks like RAGAS and TruLens provide automated metrics for assessing retrieval and generation quality in RAG systems.
Try Compute today
Put generation on a vLLM endpoint in France or UAE. Keep prompts short, stream tokens, and enforce output caps. Your retriever stays fast; your users see first tokens sooner.
Benefits and Challenges
RAG systems bring real benefits that make them worth considering when you're working with large datasets and complex questions. They use vector databases and smart indexing to cut down response times. You get faster, more accurate answers to user questions. This speed lets you run bigger models and handle more data, which means richer, more helpful responses. The ability to process tricky questions and pull relevant information from different sources makes the whole user experience better. It also expands what your AI applications can actually do. RAG systems can significantly improve operational efficiency and decision-making processes in organizations.
But scaling RAG isn't without its headaches. You need high-quality data for the system to work well. Poor data quality will tank your system's performance. Query processing gets messy as you add more documents and users ask more varied questions. Security becomes a real concern when you're integrating external data sources and handling large-scale retrieval. There's always the risk of data breaches. Evaluation metrics for RAG systems are still being figured out, which makes it tough to consistently measure how well retrieval accuracy and relevance ranking are working. Human evaluation can assess nuanced aspects like answer clarity and user experience that automated metrics may miss. Prompt engineering and fine-tuning models for specific use cases need ongoing research and experimentation. Even with these challenges, RAG's benefits—speed, scalability, and relevance—make it a powerful tool for building the next generation of AI applications. Approximately 25% of large enterprises are expected to adopt RAG by 2030.
Keep retrieval augmented generation fast with smart retrieval and short prompts
Small, clean chunks and hybrid search raise recall. Using an augmented prompt can further enhance the model's ability to leverage AI capabilities when processing vast amounts of data. A cross‑encoder reranker trims noise. Cache what repeats, filter early, and pass fewer, better chunks to the model. Place generation close to users, stream, and cap outputs. Query transformation may be needed for complex or conversational queries to optimize search results in RAG systems. Measure TTFT, retrieval latency, and token counts together and let those numbers guide changes. Testing different RAG configurations with subsets of users can measure real-world impact on engagement and satisfaction.
Last thoughts
Retrieval Augmented Generation (RAG) improves how large language models work. It gives you more accurate, relevant answers to your questions. RAG combines vector databases with generative models to process queries efficiently and pull fresh, high-quality information from large datasets. You'll face some challenges - data quality issues, complex query processing, and changing evaluation metrics. But the benefits make it worthwhile: users trust the results more, the system scales well, and it handles sophisticated AI applications.
Research in retrieval augmented generation keeps moving forward. Data scientists and AI practitioners can use these improvements to build better, more trustworthy AI systems. Focus on solid data preparation, efficient retrieval, and ongoing model improvements. This approach helps organizations get the most from RAG and deliver valuable insights to users. Natural language processing will change because of solutions like RAG. They connect static knowledge with dynamic, real-world information. This transforms how we interact with AI models and applications. Integrating RAG with semantic layers enhances data accessibility and consistency. RAG is a cost-effective way to improve AI capabilities by making AI systems more reliable and adaptable.
FAQ
What chunk size works best for RAG?
Start around 200–400 tokens with 10–20% overlap. Tune using your eval set and reranker; smaller chunks usually help recall. The system retrieves relevant chunks based on the query vector.
Should I always use a reranker?
Use one when precision matters and you can afford ~10–30 ms per candidate batch. For simple FAQs with clean tags, hybrid search alone may suffice. Re ranking helps select the most relevant chunks for the model.
How many chunks should I pass to the LLM?
Often 5–10 is enough with a good reranker. More chunks means longer prompts and slower prefill.
How do I handle multilingual corpora?
Use multilingual embeddings or split by language and index separately. Keep the chat language in the system prompt and prefer sources in that language. The embedding model creates a vector representation for each language, which is stored in the vector database.
Is long context simpler than RAG?
It is simpler but slower and costlier at scale. RAG keeps prompts short and lets you scale retrieval independently.
How do I prevent outdated answers?
Index update streams; re‑embed changed docs; store timestamps and filter by recency in queries to avoid outdated information. Show source dates in the UI.
