Home / Applied AI / 01. AI Engineering / 08. RAG System Design RAG System Design¶ The chapters in this module, in reading order. # Chapter 00 RAG Fundamentals — The Five-Year-Old Version 01 The confident wrong answer — why a vanilla LLM fails on private knowledge 02 Open-book answering — what changes when the model sees the page 03 Chunking trade-offs — the hidden costs of splitting a document 04 Chunking strategies — the toolkit 05 Embeddings — index cards for meaning 06 Similarity and models — how the librarian measures closeness 07 Vector stores and ANN — the bookshelf at a hundred million chunks 08 The RAG pipeline — from question to grounded answer 09 Query understanding and retrieval — repairing the question before it hits the shelf 10 Reranking — the second pass that saves the answer 11 Prompt augmentation — building the answer brief 12 Retrieval metrics — grading the librarian before grading the writer 13 Faithfulness and RAGAS — measuring whether the answer obeys the evidence 14 Honest admission — what RAG does not solve