
Dan Patiño
AI Strategy & Innovation at Coderhouse
Artificial Intelligence
What Are Embeddings and Why AI Search and RAG Depend on Them
An embedding is a list of numbers that represents the meaning of a piece of data, such as a sentence, a product description, an image, or a support ticket. An embedding model converts that input into a vector with hundreds or thousands of dimensions, placed so that items with similar meaning end up close together. “How do I reset my password?” and “I forgot my login credentials” share almost no words, yet their embeddings sit near each other because they mean nearly the same thing.
Why it matters now: most AI products that search, recommend, or answer questions over company data depend on embeddings under the hood. Retrieval for chatbots, semantic search on websites, duplicate detection, and clustering of customer feedback all start by turning text into vectors. Google’s Machine Learning Crash Course describes embeddings as relatively low-dimensional spaces into which you can translate high-dimensional data, capturing semantic relationships in a form models can work with efficiently. Understanding them is now a basic skill for anyone building with large language models.
How Embeddings Work
An embedding model is a neural network trained so that related inputs produce nearby vectors and unrelated inputs produce distant ones. During training it sees huge numbers of pairs, such as questions and their answers or captions and their images, and learns to pull matching pairs together and push mismatched pairs apart. Once trained, the model is used as a function: text goes in, a fixed-length vector comes out.
To compare two items, you measure the distance between their vectors. The most common measure is cosine similarity, which looks at the angle between vectors rather than their length. A score close to 1 means the meanings are very close; a score near 0 means they are unrelated. OpenAI’s embeddings guide lists typical uses as search, clustering, recommendations, anomaly detection, and classification, all built on this idea of measuring relatedness.
Dimensions and Trade-Offs
Larger vectors can capture more nuance but cost more to store and compare. Some recent models let you shorten vectors while keeping most of their quality, which helps when you are indexing millions of documents. Choosing a model is a balance between accuracy on your domain, language coverage, vector size, latency, and price per call.
Why AI Search and RAG Depend on Embeddings
In retrieval-augmented generation (RAG), documents are split into chunks, each chunk is embedded, and the vectors are stored in an index. When a user asks a question, the question is embedded with the same model and the system retrieves the closest chunks to give the language model as context. If the embeddings are poor, the model receives the wrong context and confidently answers from it.
Those vectors usually live in a vector database or a vector index inside an existing database, which can find the nearest neighbors among millions of entries in milliseconds using approximate search algorithms.
Beyond Text
Embeddings are not limited to language. Multimodal models place images and text in the same space, so a written query can find a matching photo. Recommendation systems embed users and products to suggest items a person is likely to want, and fraud teams embed transactions to spot unusual behavior.
How to Choose and Evaluate an Embedding Model
Public benchmarks are a useful starting point. The MTEB leaderboard on Hugging Face compares models across retrieval, classification, clustering, and other tasks in many languages. Open-source libraries such as Sentence Transformers make it easy to run models locally. Still, leaderboard scores rarely predict performance on your own documents. The reliable approach is to build a small test set of real queries with known correct answers and measure how often each candidate model retrieves the right chunk.
Common Mistakes With Embeddings
The first mistake is mixing models. Vectors from different models, or even different versions of the same model, are not comparable, so changing models means re-embedding the whole collection. The second is poor chunking: chunks that are too long blur several topics together, while chunks that are too short lose context. The third is relying only on semantic similarity. Exact identifiers like product codes or error numbers are often better matched by keyword search, which is why many teams combine both in hybrid search. The fourth is forgetting that embeddings can encode sensitive information, so the vector index needs the same access controls as the source data.
If you want to learn how to build AI search, RAG pipelines, and agents on top of embeddings, and how to measure their quality with data, structured practice helps. Explore Coderhouse’s courses below.
AI Engineering Course — learn to build retrieval, RAG, and agent systems that run in production.
Data Analytics Course — develop the analysis skills to evaluate search quality and model performance.
FAQ
Are embeddings the same as a vector database?
No. Embeddings are the vectors themselves, produced by a model. A vector database is the system that stores those vectors and finds the most similar ones quickly.
Do I need a GPU to create embeddings?
Not necessarily. You can call a hosted embedding API, and many smaller open-source models run acceptably on a regular CPU. GPUs mainly help when you embed very large collections quickly.
How often should I re-embed my data?
Embed new or changed content as it arrives, and re-embed everything only when you switch models or change how documents are chunked, since old and new vectors cannot be mixed.
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.