Master Retrieval-Augmented Generation (RAG) to build accurate, context-aware AI applications. Learn embedding strategies, vector databases, and production implementation for Laravel, Shopify, and WordPress projects.
Retrieval-Augmented Generation (RAG) fundamentally improves how AI applications handle knowledge. Rather than relying solely on an LLM’s training data (which becomes outdated), RAG retrieves relevant information at runtime through semantic search, then uses that context to generate accurate responses.
This guide covers RAG implementation from architecture to production deployment, with practical examples for Laravel, Shopify, and WordPress applications.
Understanding RAG Architecture
The Core Problem RAG Solves
Large language models have inherent limitations:
Knowledge Cutoff: Models trained on data up to a specific date lack current information. A model trained in 2023 won’t know about events in 2024.
Hallucination Risk: When LLMs don’t know something, they often generate plausible-sounding but incorrect information rather than admitting uncertainty.
Private Data Gap: Your proprietary documentation, code, or business knowledge isn’t in the model’s training data.
Computational Cost: Fine-tuning models on your specific data is expensive, time-consuming, and quickly becomes outdated.
RAG solves these by retrieving relevant information at query time, giving the model fresh, accurate context.
How RAG Works: The Complete Pipeline
1. Knowledge Ingestion
Transform your content into searchable embeddings:
# Example: Processing documentation
documents = load_documents('./docs')
for doc in documents:
# Chunk into semantic units
chunks = chunk_document(doc, size=512, overlap=50)
for chunk in chunks:
# Generate embedding
embedding = openai.embeddings.create(
model="text-embedding-3-small",
input=chunk.content
)
# Store in vector database
pinecone.upsert([{
'id': chunk.id,
'values': embedding.data[0].embedding,
'metadata': {
'content': chunk.content,
'source': doc.path,
'section': chunk.heading
}
}])
2. Query Embedding
Convert user questions into the same vector space:
const queryEmbedding = await openai.embeddings.create({
model: "text-embedding-3-small",
input: userQuery
});
3. Semantic Retrieval
Find the most relevant chunks using cosine similarity:
const searchResults = await pinecone.query({
vector: queryEmbedding.data[0].embedding,
topK: 5,
includeMetadata: true
});
4. Context-Augmented Generation
Inject retrieved content into the LLM prompt:
const context = searchResults.matches
.map(match => match.metadata.content)
.join('\n\n---\n\n');
const completion = await openai.chat.completions.create({
model: "gpt-4-turbo",
messages: [{
role: "system",
content: `Answer using only the provided context. If the context doesn't contain the answer, say so.`
}, {
role: "user",
content: `Context:\n${context}\n\nQuestion: ${userQuery}`
}]
});
This complete pipeline ensures responses are grounded in your actual data, not model hallucinations.
RAG vs Fine-Tuning vs Prompt Engineering
RAG Advantages:
When to Use Fine-Tuning Instead:
- Changing model behaviour or writing style
- Teaching domain-specific patterns
- Improving performance on specific tasks
When Prompt Engineering Suffices:
- Simple context fits in prompt window
- No frequent knowledge updates needed
- Cost-sensitive applications
For prompt best practices, see our prompt engineering guide.
Example Stack
- Embedding model: OpenAI
text-embedding-3-small, Cohere, or InstructorXL - Vector DB: Pinecone, Weaviate, Qdrant, or pgvector (Postgres extension)
- LLM: GPT-4, Claude, Mistral, or local models
- Frameworks: LangChain, LlamaIndex, or custom TypeScript / Laravel code
Data Ingestion Tips
- Chunk by semantic structure (headings, paragraphs)
- Add metadata (source, page, section)
- Use aggressive deduplication
- Use batch upserts for performance
Prompt Strategy
Wrap retrieved content in clear markers:
### Context
[CHUNK 1]
[CHUNK 2]
### Question
[USER INPUT]
Instruct the LLM to answer only using provided context.
Real-World Application
In our Shopify RAG assistant:
- Theme code, metafields, and docs embedded
- Users asked questions like “How does this snippet impact CLS?”
- Context + code inserted into prompt
- Model responded using relevant data only
Accuracy improved >60% over default prompts.
Monitoring & Optimisation
- Use cosine similarity thresholds
- Track embedding drift if sources change
- Compress old chunks to reduce cost