Build Your First RAG Pipeline: A Step-by-Step Tutorial for AI Developers

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⏱ 1 min read Jun 21, 2026 By Theo Grant
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Last updated: August 21, 2026

Build Your First RAG Pipeline: A Step-by-Step Tutorial for AI Developers

1. Understanding Retrieval-Augmented Generation (RAG)

  • What RAG is and why it overcomes LLM limitations (e.g., hallucination, stale knowledge)
  • Core components: vector database, embedding model, LLM, and retrieval logic
  • Real‑world use cases: customer support bots, internal knowledge bases, code assistants

2. Setting Up Your Environment & Tools

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  • Installing Python packages: chromadb, langchain, openai, pypdf
  • Obtaining API keys for OpenAI (or a local LLM) and configuring environment variables
  • Choosing a vector database: ChromaDB vs. Pinecone vs. FAISS – when to use each

3. Preparing Your Data & Generating Embeddings

  • Ingesting documents: splitting text into chunks of 500–1000 tokens with overlap
  • Creating embeddings using OpenAI’s text-embedding-3-small or a local model
  • Storing embeddings in ChromaDB with metadata (source, page number, date)

4. Implementing the Retrieval Engine

  • Writing a function to query the vector DB and return top‑k relevant chunks
  • Tuning the retrieval: similarity score threshold, chunk size, and `k` value
  • Adding hybrid search (keyword + semantic) for better accuracy on specific terms

5. Connecting Retrieval with an LLM

  • Building a prompt template that injects retrieved context + user query
  • Calling GPT‑4o (or another LLM) via LangChain’s `ChatOpenAI` and `RetrievalQA` chain
  • Handling edge cases: no relevant context, empty retrieval, fallback responses

6. Testing & Optimising Your RAG Pipeline

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