Skip to Content
AI Engineering Interviews
book

AI Engineering Interviews

by Mina Ghashami, Ali Torkamani
December 2026
Beginner to intermediate
484 pages
12h 41m
English
O'Reilly Media, Inc.
Content preview from AI Engineering Interviews

Chapter 4. RAG and Agents

In Chapter 3, we looked at prompt engineering as one way to equip LLMs with the information they need. In this chapter, we introduce retrieval-augmented generation (RAG) and show how it evolves into agentic RAG and, ultimately, tool-using agents.

The shortcoming with prompt engineering is that in many real systems, better prompts are not enough. The model may need facts that were never in its training data, details that change frequently, or private information that cannot be included in pretraining. RAG offers a practical and cost-effective alternative; instead of forcing the model to “know” everything, the system retrieves relevant information at runtime and injects it into the model’s context before generation. Figure 4-1 shows the comparison between RAG and prompt engineering.

Diagram comparing Prompt Engineering and Retrieval-Augmented Generation (RAG) workflows, highlighting RAG's advantage of accessing external data to enhance responses and reduce hallucinations.
Figure 4-1. Comparison of prompt engineering and RAG. Both are common ways to adapt an LLM system.

RAG changed how LLM applications are built. Rather than treating the model as a self-contained knowledge base, modern systems increasingly treat it as a reasoning and synthesis engine that operates over external data. We’ll build up to that perspective in three steps:

  1. First, we cover vanilla RAG (also known as classical RAG or basic RAG). In its simplest form, a RAG system retrieves a set of top-k documents relevant to each user query, augments the user query with them, and ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

AI Engineering

AI Engineering

Chip Huyen
AI Engineering

AI Engineering

Chip Huyen
AI Engineering

AI Engineering

Chip Huyen
Introduction to Generative AI

Introduction to Generative AI

Numa Dhamani, Maggie Engler

Publisher Resources

ISBN: 9798341623521Errata Page