LEARNER · GLOBAL
What is RAG? Retrieval-Augmented Generation explained for BFSI practitioners
RAG (Retrieval-Augmented Generation) is a technique where an AI model fetches relevant documents or data from a private knowledge base before generating an answer. Think: LLM checks your bank's loan policies + customer file before drafting a credit decision, not hallucinating from generic training data.
WHY IT MATTERS
RAG is foundational for BFSI: enables models to cite source documents (auditable), stay current (no retraining), and respect data privacy (queries don't leave your infrastructure). Essential for compliance in lending, claims, and underwriting.
Source: AITechHive Learner Series