Retrieval-Augmented Generation (RAG): A Practical Guide for Data Engineers

Large Language Models (LLMs) are powerful, but they have a serious limitation:
they don’t know your data.

Retrieval-Augmented Generation (RAG) is the most common way to fix that — and it’s much more of a data engineering problem than an ML one.

This article explains: - What RAG really is (without buzzwords) - How a production-ready RAG pipeline works - Where data engineers add the most value - Common mistakes teams make when building RAG systems


What Is RAG (In Simple Terms)

RAG is a pattern where an LLM: 1. Retrieves relevant data from an external system 2. Uses that data as context to generate an answer

Instead of asking:

“LLM, answer based on your training data”

You ask:

“LLM, answer using these documents I just retrieved”

The LLM does not search your data itself.
Your system does.


High-Level RAG Architecture

A typical RAG system looks like this:

Data Sources
   ↓
Ingestion & Cleaning
   ↓
Chunking
   ↓
Embedding Generation
   ↓
Vector Database
   ↓
Retriever
   ↓
LLM
   ↓
Final Answer

From a data engineering perspective, everything before the LLM is your domain.


Step 1: Data Ingestion (Where RAG Usually Breaks First)

Your data might come from: - PDFs - Databases - APIs - Notion / Confluence - Git repositories

Key problems to solve:

  • Incremental ingestion (not full reloads)
  • Document versioning
  • Deletions and updates
  • Metadata extraction

Bad RAG starts with bad ingestion.


Step 2: Chunking (The Most Underrated Decision)

You cannot embed entire documents.
You must split them into chunks.

Rule of thumb: Start with 500–800 tokens, then measure retrieval quality.


Step 3: Embeddings (Turning Text into Vectors)

Embeddings convert text into numeric vectors that capture semantic meaning.

Data engineering concerns: - Cost - Re-embedding strategy - Batch vs streaming


Step 4: Vector Databases

Vector databases store embeddings and allow similarity search.

What actually matters: - Metadata filtering - Index rebuild time - Hybrid search - Scalability


Step 5: Retrieval

Retrieval decides what context the LLM sees.

Retrieval quality matters more than the model you use.


Where Data Engineers Add the Most Value

  • Reliable ingestion pipelines
  • Incremental updates
  • Monitoring retrieval quality
  • Cost control

Common RAG Anti-Patterns

❌ Treating RAG as “just an LLM feature”
❌ No re-indexing strategy
❌ Ignoring latency
❌ No evaluation


Final Thoughts

RAG is not an AI problem.
It’s a data architecture problem with an LLM at the end.