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Hargun Singh
Hargun Singh

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# Building an AI Agent with RAG: A Simple Guide to Vector Databases and Embeddings

Ever wondered how AI can answer questions about your documents? The secret lies in RAG (Retrieval-Augmented Generation) - a powerful technique that combines vector databases with language models to create intelligent assistants.

In this article, we'll explore how to build an AI agent that can understand and answer questions about your documents using RAG, vector databases, and embeddings.

What is RAG and Why Do We Need It?

RAG stands for Retrieval-Augmented Generation. It's a technique that makes AI responses more accurate by grounding them in real documents.

The Problem: Traditional AI models can "hallucinate" - they make up facts that sound convincing but aren't true.

The Solution: RAG retrieves relevant information from your documents first, then uses that context to generate accurate answers.

The Three Key Components

1. Embeddings: Converting Text to Numbers

Embeddings are numerical representations of text that capture meaning. Think of them as a "fingerprint" for words and sentences.

// "machine learning" becomes:
[0.1, -0.3, 0.8, 0.2, -0.5, ...] // 1536 numbers for OpenAI's model
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Why this matters: Similar concepts get similar embeddings. "car" and "automobile" would have very similar numerical representations, even though they're different words.

2. Vector Database: The Smart Search Engine

A vector database (like Pinecone) stores all your document embeddings and can instantly find the most similar pieces of text to any query.

Traditional search: Looks for exact keyword matches
Vector search: Understands meaning and context

3. Language Model: The Answer Generator

The LLM (like GPT) takes the retrieved context and generates human-like answers.

How RAG Works: Step by Step

Let's trace through what happens when you ask "How do I install this library?":

Step 1: Convert Your Question to Numbers

const queryEmbedding = await embeddingService.generateEmbedding("How do I install this library?");
// Result: [0.2, -0.1, 0.9, ...]
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Step 2: Find Similar Content

const similarChunks = await pineconeService.querySimilar(queryEmbedding, 5);
// Result: Returns 5 most relevant document chunks
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Step 3: Generate Answer with Context

const response = await llmService.generateAnswer(query, relevantChunks);
// Result: "To install this library, run 'npm install package-name' in your terminal..."
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The Complete Flow

Whole flow how documents are processed

Why RAG is Powerful

1. Accurate Answers

  • Only uses information from your actual documents
  • Prevents AI from making up facts
  • Every answer is backed by source material

2. Context-Aware

  • Understands meaning, not just keywords
  • Can find relevant information even with different wording
  • Maintains conversation context

3. Scalable

  • Works with any type of document
  • Easy to add new data sources
  • Handles large amounts of information efficiently

Real-World Example: How RAG Works in Practice

Let's walk through a complete example of how RAG processes a user query step by step.

User asks: "What's the refund policy for this product?"

Step 1: Document Processing (Done Once)

First, our system processes all documents and converts them to searchable chunks:

// Document: "Terms of Service.pdf"
// Chunk 1: "Our refund policy allows returns within 30 days..."
// Chunk 2: "Refunds are processed within 5-7 business days..."
// Chunk 3: "For digital products, refunds are only available if..."
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Each chunk gets converted to an embedding (a list of 1536 numbers) and stored in Pinecone.

Step 2: Query Processing (Real-time)

When the user asks their question:

2a. Convert Question to Embedding

const queryEmbedding = await embeddingService.generateEmbedding("What's the refund policy for this product?");
// Result: [0.2, -0.1, 0.9, 0.3, -0.4, ...] (1536 numbers)
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2b. Search Vector Database

const similarChunks = await pineconeService.querySimilar(queryEmbedding, 3);
// Returns top 3 most similar chunks based on meaning, not keywords
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2c. Retrieve Context
The system finds these relevant chunks:

  • Chunk 1: "Our refund policy allows returns within 30 days of purchase if the product is unused and in original packaging."
  • Chunk 2: "Refunds are processed within 5-7 business days and will be credited back to your original payment method."
  • Chunk 3: "For digital products, refunds are only available if you haven't downloaded the content yet."

2d. Generate Answer

const response = await llmService.generateAnswer(query, relevantChunks);
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The LLM combines the user's question with the retrieved context to generate a natural response.

Step 3: Final Response

User sees:

"Based on our terms of service, you can request a full refund within 30 days of purchase if the product is unused and in original packaging. Refunds are processed within 5-7 business days and will be credited back to your original payment method. For digital products, refunds are only available if you haven't downloaded the content yet."

Source: [Terms of Service.pdf, Section 4.2]

Why This Works Better Than Traditional Search

Traditional keyword search would look for exact matches like "refund policy" and might miss relevant information.

RAG with vector search understands that "return policy", "money back guarantee", and "refund policy" all mean the same thing, so it finds all relevant information regardless of the exact wording used.

The key insight: RAG doesn't just search for keywords - it searches for meaning, making it much more powerful and accurate.

Getting Started with RAG

1. Choose Your Tools

  • Embeddings: OpenAI's text-embedding-ada-002
  • Vector Database: Pinecone (or alternatives like Weaviate, Qdrant)
  • LLM: OpenAI GPT-3.5 or GPT-4

2. Process Your Documents

// Convert documents to chunks
const chunks = await processDocuments(documents);

// Generate embeddings
const embeddings = await generateEmbeddings(chunks);

// Store in vector database
await storeInVectorDB(chunks, embeddings);
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3. Query Your Knowledge Base

// Convert question to embedding
const queryEmbedding = await generateEmbedding(question);

// Find similar content
const results = await searchVectorDB(queryEmbedding);

// Generate answer
const answer = await generateAnswer(question, results);
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Key Takeaways

  • RAG combines retrieval and generation for accurate AI responses
  • Embeddings convert text to numbers that capture meaning
  • Vector databases enable fast, semantic search
  • Context from your documents prevents AI hallucination
  • Source citations build trust and allow verification

Next Steps

RAG is just the beginning. You can extend this approach with:

  • Multiple document types (PDFs, CSVs, web pages)
  • Hybrid search (combining vector and keyword search)
  • Fine-tuned models for specific domains
  • Real-time document updates

The beauty of RAG is its simplicity - it takes your existing documents and makes them intelligently searchable through natural language.


Ready to build your own RAG-powered AI agent? Start with a simple document, get the basic flow working, then gradually add more sophisticated features. The future of knowledge management is here, and it's powered by vectors!

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