RAG grounds AI outputs in a company's documents, knowledge bases, policies, product information, customer history, or other trusted sources. Instead of relying only on model memory, the system pulls current context into the task.
For agent systems, RAG is often the difference between useful and dangerous. An agent handling support, sales, onboarding, or internal questions needs access to the right information at the right moment. Without retrieval, it guesses. With retrieval, it can operate from company-specific truth.