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The Evolution of RAG and Agentic AI: Insights from the Latest Webinar

Explore the latest advancements in Retrieval-Augmented Generation (RAG) and Agentic AI models, their challenges, solutions, and innovative use cases, as discussed in our recent webinar.

Raghav Aggarwal

Raghav Aggarwal

December 2, 2024

The Evolution of RAG & AGENTIC AI

TL;DR

RAG (Retrieval-Augmented Generation) and Agentic AI are transforming industries by combining precise data retrieval with autonomous, goal-driven workflows. Key innovations include hybrid retrieval systems, memory agents for conflict resolution, and multimodal AI. Use cases span call center automation, KYC, and AI-driven research. Businesses must weigh build vs. buy decisions based on scalability, expertise, and deployment speed. These technologies promise faster, smarter, and scalable AI solutions for a competitive edge.

TL;DR Summary
Why is AI important in the banking sector? The shift from traditional in-person banking to online and mobile platforms has increased customer demand for instant, personalized service.
AI Virtual Assistants in Focus: Banks are investing in AI-driven virtual assistants to create hyper-personalised, real-time solutions that improve customer experiences.
What is the top challenge of using AI in banking? Inefficiencies like higher Average Handling Time (AHT), lack of real-time data, and limited personalization hinder existing customer service strategies.
Limits of Traditional Automation: Automated systems need more nuanced queries, making them less effective for high-value customers with complex needs.
What are the benefits of AI chatbots in Banking? AI virtual assistants enhance efficiency, reduce operational costs, and empower CSRs by handling repetitive tasks and offering personalized interactions
Future Outlook of AI-enabled Virtual Assistants: AI will transform the role of CSRs into more strategic, relationship-focused positions while continuing to elevate the customer experience in banking.
Why is AI important in the banking sector?The shift from traditional in-person banking to online and mobile platforms has increased customer demand for instant, personalized service.
AI Virtual Assistants in Focus:Banks are investing in AI-driven virtual assistants to create hyper-personalised, real-time solutions that improve customer experiences.
What is the top challenge of using AI in banking?Inefficiencies like higher Average Handling Time (AHT), lack of real-time data, and limited personalization hinder existing customer service strategies.
Limits of Traditional Automation:Automated systems need more nuanced queries, making them less effective for high-value customers with complex needs.
What are the benefits of AI chatbots in Banking?AI virtual assistants enhance efficiency, reduce operational costs, and empower CSRs by handling repetitive tasks and offering personalized interactions.
Future Outlook of AI-enabled Virtual Assistants:AI will transform the role of CSRs into more strategic, relationship-focused positions while continuing to elevate the customer experience in banking.
TL;DR

Introduction: The Rapid Growth of AI Frameworks

In an era where AI capabilities are evolving at lightning speed, retrieval-augmented generation (RAG) and agentic AI models stand out as revolutionary concepts. During our recent webinar, we delved deep into these transformative technologies, shedding light on their challenges, solutions, and potential. Here’s a comprehensive overview of the key insights shared.

Let's understand RAG and Agentic AI!

What is RAG?

RAG systems combine the power of retrieval mechanisms and generation models. They leverage external data sources like vector databases, graphs, or SQL systems to augment their generative capabilities. This approach makes them particularly effective in scenarios where factual accuracy is critical, such as finance, legal, and healthcare.

What are Agentic AI Models?

Agentic AI models operate with goal-oriented autonomy. Unlike traditional models that respond to individual queries, agents plan, act, and decide based on their objectives. This allows them to solve complex problems by breaking them into subtasks and coordinating solutions.

Challenges in RAG and Agentic AI

  1. Data Parsing Complexities
    Parsing multi-format documents with images, tables, and nested structures remains a significant challenge. Solutions include hybrid parsers, agent-directed logic, and advanced techniques like document segmentation.
  2. Conflicting Knowledge
    Determining the most up-to-date or accurate information, such as changes in policies, requires robust conflict resolution. Long-term memory agents can help prioritize authoritative sources.
  3. Custom Vocabulary
    Adapting to industry-specific jargon or acronyms is essential for AI systems to perform accurately. Training agents with specialized datasets or using vocabulary agents ensures they understand domain-specific terminology.
  4. Query Rewriting
    Agents often struggle when follow-up queries lack context. By implementing a query rewriting phase, systems can clarify ambiguous inputs for better retrieval and accuracy.

RAG 2.0: Solutions to Elevate Performance

To overcome these challenges, our webinar introduced Agentic RAG—a hybrid system integrating multiple retrieval sources and agents to refine the process. Key components include:

  • Fusion Retrievers: Retrieve data from various sources, including vectors, graphs, and SQL tables.
  • Rankers: Filter out irrelevant information to streamline context for the AI.
  • Memory Agents: Teach the AI how to handle conflicts and preferences (e.g., prioritize updates over master documents).

The Rise of Agentic AI: A Step Beyond RAG

Agentic AI moves beyond static Q&A formats by simulating human-like workflows. Agents specialize in tasks like internet research, planning, and summarization.

Example Workflow:

  • Planner Agent: Breaks down tasks into smaller objectives.
  • Researcher Agent: Gathers data from the internet or internal databases.
  • Newsletter Agent: Summarizes findings in an engaging format.
  • Email Draft Agent: Creates professional emails based on research insights.

This division of labor mirrors human collaboration, ensuring faster and more accurate outcomes.

Use Cases: From Simplicity to Complexity

1. Call Center Optimization

Starting as assistive tools for human agents, AI systems evolve into fully autonomous agents capable of handling up to 90% of inquiries.

2. Text-to-SQL Applications

Agents translate natural language queries into SQL commands, enabling dynamic retrieval of structured data from databases.

3. KYC Automation

Streamlining identity verification processes with multi-agent workflows that handle document analysis, data extraction, and validation.

4. AI-Driven Research

Agents autonomously conduct research, generating newsletters or reports based on real-time insights.

The Role of Multimodality and Advanced Tools

Multimodal Agents

Agents integrate voice, text, and images, offering a seamless experience for industries like finance and healthcare. For example, voice-first agents process queries in real time and provide accurate, conversational responses.

Tools and Frameworks

  • NVIDIA Nemo: Optimizes AI models for faster inference using GPU-optimized containers.
  • Groq LPUs: Custom hardware accelerates language model inference by tailoring chips for AI tasks.

Build vs. Buy: Choosing the Right Path

When deciding between building or buying a RAG or Agentic AI solution, consider:

  • Build: Offers greater control but requires substantial expertise and time. Suitable for organizations with skilled teams and long-term goals.
  • Buy: Accelerates deployment and focuses on real-world challenges like user behavior and scaling. Look for platforms with on-premise options, advanced features, and robust compliance support.

The Future: Combining RAG and Agentic AI

By merging RAG's retrieval power with Agentic AI's goal-oriented autonomy, organizations unlock unparalleled efficiency and innovation. These systems are transforming industries by enabling faster, smarter, and more scalable solutions.

Conclusion: Embracing the Potential of AI

From enhancing call centers to revolutionizing document processing, the possibilities of RAG and Agentic AI are vast. As these technologies mature, their integration will become indispensable for businesses aiming to stay ahead in the AI-driven world.

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