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What is Retrieval Augmented Generation (RAG)?

RAG, or Retrieval Augmented Generation, is an AI technique that allows a large language model (LLM) to pull in relevant, up-to-date information from external sources before generating a response. For example, OpenAI's new finance tools use RAG to query your bank data via Plaid to answer specific questions.

WHY IT MATTERS

Enables AI to provide more accurate and context-specific answers by accessing real-time or proprietary data, crucial for financial advice and analysis.

Source: OpenAI Launches AI-Powered Finance Tools · 2026-05-18

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What is Retrieval Augmented Generation (RAG)? — ath