LEARNER · GLOBAL
What is RAG? How banks use external documents to make LLMs accurate
Retrieval-Augmented Generation (RAG) lets an AI model (like ChatGPT) look up recent or proprietary documents before answering a question, rather than relying only on training data. A bank uses RAG to let an LLM cite current compliance rules or a customer's account history without hallucinating.
WHY IT MATTERS
RAG is how financial institutions deploy LLMs safely on real data without retraining. JPMorgan's SambaNova deployment likely uses RAG to ground responses on policy documents, customer data, and risk rules—reducing hallucination and regulatory audit risk.
Source: AITechHive · 2026-07-09