What it means
Retrieval-Augmented Generation (RAG) is like giving an AI an open-book test. Instead of relying only on its memory (which can be faulty), the AI first searches a trusted database for relevant info and then uses that to generate an answer.
Why it matters
It drastically reduces 'hallucinations' (made-up facts) and allows AI to answer questions about private business data or very recent events that it wasn't originally trained on.