LEARNER · GLOBAL
What is RAG? Why banks use it to ground LLMs in real data
RAG (Retrieval-Augmented Generation) is a technique that pulls relevant documents or data from a bank's internal system and feeds them into an AI model before generating an answer. Instead of the AI relying only on its training, RAG lets it cite current, accurate facts.
WHY IT MATTERS
RAG is the production workaround to LLM hallucination. Banks deploying customer service or risk-analysis bots almost always layer RAG to anchor outputs in compliance docs, policies, and transaction history.