The new wave of generative large language models, such as ChatGPT, has the

potential to transform entire industries. Their ability to generate human-like text

has already revolutionized applications ranging from chatbots to content
creation. However, despite their remarkable capabilities, LLMs suffer from
various shortcomings, including a tendency to hallucinate, meaning that they
often generate responses that are factually incorrect or nonsensical. This is
where the concept of retrieval-augmented generation (RAG) comes into play as a
potential game-changer. This framework combines the power of retrieval-
based models with the creativity of generative models, resulting in a powerful
approach to feed contextually relevant data to LLMs. In this article, we will
explain how the RAG framework works, and discuss its associated challenges.

LLM-powered chatbot architecture

To explain how retrieval-augmented generation framework works, let’s pick a
concrete use case. Assume a data science team is tasked with building a chatbot
to support t financial advisors at a bank