
Dan Patiño
AI Strategy & Innovation at Coderhouse
Artificial Intelligence
RAG Explained: What Retrieval Augmented Generation Is and Why Companies with AI Use It
Publicado el
AI models like ChatGPT or Gemini are powerful, but they have a problem that very few know about: they forget everything they didn't learn during training. RAG, or Retrieval Augmented Generation, is the solution that the most innovative companies are adopting so that their AI systems respond with their own, up-to-date, and reliable information. If you work in technology, product, or business, RAG is already a term you're going to hear all the time — and it's better to understand it now than to be left behind. Searches for the term grew more than 300% in LATAM and there is almost no explanatory content in Spanish for non-technical professionals.
Why AI models "forget" things
LLMs (language models) learn during a training process with enormous volumes of text. Once trained, their knowledge is "frozen" at that cutoff date. If you ask them about something that happened afterward, or about your company's internal information, they simply don't know. This limitation has three concrete consequences that affect the usefulness of AI in business contexts:
The model does not access private documents or internal databases.
It has no information after its training date.
It can "hallucinate" (invent plausible but incorrect answers).
For companies that need AI to respond accurately about their processes, products, or internal regulations, this limitation can be a real blocker.
What RAG is and how it solves that problem
RAG is an architecture that connects an AI model with an external source of information at the moment of responding. Instead of relying only on what it learned, the model first "searches" relevant documents and then generates the answer based on that retrieved information.
The process works in three steps:
The user asks a question.
The system searches for the most relevant fragments in a knowledge base (internal documents, FAQs, databases).
The model generates an answer using those fragments as context.
This makes the answers more precise, up to date, and verifiable. The knowledge base can be updated at any time without needing to retrain the model.
Real use cases in companies
RAG is being implemented across all kinds of industries with concrete results. The most common cases include:
Onboarding chatbots: An assistant that answers new employees' questions based on the company's internal manual, without anyone having to update the model every time a policy changes.
Customer support: A bot that accesses the knowledge base updated in real time to answer tickets, reducing resolution time and the team's workload.
Legal or financial assistants: Queries about the organization's specific contracts or regulations, with answers grounded in the company's real documents.
Internal document search: Companies with large volumes of files can query them in natural language, as if asking a colleague who has already read everything.
According to McKinsey — The State of AI, 75% of enterprise AI projects in active implementation use some variant of RAG or similar architectures to connect models with their own, up-to-date information.
RAG vs. Fine-tuning: which one should you use?
Many confuse RAG with fine-tuning, but they are distinct approaches with different use cases. Fine-tuning retrains the model with new data — it is expensive, slow, and inflexible. RAG, on the other hand, keeps the base model and only updates the knowledge base. It is more agile, more economical, and easier to maintain.
Criterion | RAG | Fine-tuning |
|---|---|---|
Cost | Low | High |
Implementation time | Fast | Slow |
Data update | Immediate | Requires retraining |
Ideal case | Changing or private information | Changing the model's style or behavior |
For most business cases, RAG is the recommended option. According to the official LangChain documentation, RAG is the most used integration pattern in enterprise AI applications.
Popular tools to implement RAG
The tooling ecosystem for building RAG systems grew a lot in recent years. The most used are LangChain and LlamaIndex, which facilitate the connection between the models and the vector databases where the indexed information is stored. For non-technical teams, platforms like Flowise or n8n make it possible to build RAG flows with visual interfaces, without needing to write code from scratch.
If you're interested in exploring this topic further, you can also read how to automate daily tasks with artificial intelligence.
Recommended Coderhouse courses
If you want to understand how to implement RAG and build AI applications that use real information, the AI Engineering Course teaches you to build AI systems with connections to databases, APIs, and your own documents. The AI Agents Course covers the architecture of agents that use RAG as a central component. And if you want to start from scratch with solid foundations, the Artificial Intelligence Course is the ideal entry point to understand how these systems work.
Frequently asked questions
Does RAG replace fine-tuning?
Not necessarily. They are complementary approaches. RAG is better for information that changes frequently or is private; fine-tuning is useful when you need to change the model's behavior or "style" more deeply.
Do I need to know how to program to implement RAG?
It depends on the level of implementation. Tools like LangChain or LlamaIndex facilitate the process, although they require basic knowledge of Python. For enterprise use, you generally need a technical team or at least someone with a background in AI Engineering.
Does RAG work with any AI model?
Yes, RAG is a model-agnostic architecture. It can be implemented with GPT-4, Claude, Gemini, or other LLMs, combining it with any vector database like Pinecone, Weaviate, or Chroma.
What is the difference between RAG and a Google search?
Traditional search returns links. RAG returns an answer generated with the retrieved content as the source, maintaining the context of the conversation and being able to answer complex questions that require combining information from multiple documents.
Is RAG safe for confidential company information?
Yes, when implemented correctly. The information stays in the company's database and the model only accesses the relevant fragments during the query. Many companies use RAG with LLMs deployed on their own infrastructure for maximum privacy.

Sobre el autor
I'm Dan Patiño, head of AI Strategy & Innovation at Coderhouse. My day-to-day work involves merging the tactical management of e-commerce (CRO, Email Marketing and SEO) with the development of disruptive solutions. I specialize in building internal AI-powered apps to automate tasks and boost innovation within the team. I firmly believe that technology is strategy's best ally. To dive deeper into my professional journey, I'll be waiting for you on my LinkedIn profile.