LEARNER · GLOBAL
What is RAG? A plain-English explainer for risk officers evaluating LLM vendors
RAG (Retrieval-Augmented Generation) = feeding an LLM fresh data from a database or document store before it answers your question, so it doesn't hallucinate or repeat stale info. Banks use it to let ChatGPT cite live customer records or compliance docs without retraining the model.
WHY IT MATTERS
BFSI compliance and risk teams must understand RAG to evaluate vendor robustness claims: a RAG system is only as good as its data pipeline, so audit focus shifts from model training to data quality, refresh cadence, and access controls.
Source: Industry context · 2026-10-16