Glossary

Retrieval-Augmented Generation (RAG)

An AI architecture that searches external sources for relevant information before generating a response, powering tools like Perplexity and AI Overviews.

Definition

What this term means

An AI architecture that combines real-time information retrieval with language generation. Instead of relying solely on pre-trained knowledge, RAG systems search external sources, such as websites, databases, or knowledge bases, to find relevant information before composing their response. This is the technology behind AI search tools like Perplexity and Google's AI Overviews.

Why it matters

The business impact

RAG is the mechanism that determines whether your content gets cited in AI-generated answers. If your pages are not structured for retrieval, with clear headings, factual claims, and proper markup, RAG systems will pull information from competitors instead. Optimising for RAG is one of the highest-impact actions a brand can take for AI visibility.

Used in context

How you might use this term

A software company restructured their documentation with concise, well-headed sections and structured data. RAG-powered platforms like Perplexity began pulling directly from their docs, resulting in a 200% increase in AI-attributed referral traffic within three months.
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