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Enterprise RAG System

Intelligent Document Retrieval with Multi-Layer Caching

A production-grade RAG architecture that combines Azure AI Search with intelligent caching strategies to deliver accurate document-based answers at scale. Designed for enterprise environments requiring high throughput, low latency, and cost-efficient LLM operations.

The Challenge

Key problems this architecture solves

📚

Enterprise knowledge scattered across thousands of documents (PDF, DOCX, internal wikis) making information discovery slow and inefficient.

🔍

Traditional keyword search misses semantic context and relationships between concepts, leading to incomplete or irrelevant results.

⚠️

Direct LLM queries without retrieval lead to hallucinations and incorrect information, undermining trust in AI-powered systems.

💰

High costs and slow response times when processing large document sets repeatedly, making enterprise deployments economically unfeasible.

System Architecture

End-to-end data flow and components

📥 Document Ingestion
Azure Blob Storage
Document Repository
Azure Functions
Parsing & Chunking
↓
🧮 Embedding & Indexing
Azure OpenAI Embeddings
text-embedding-3-large
Azure AI Search
Vector Database
↓
🎯 User Query Path
Redis Cache
Semantic Caching ⚡
Hybrid Search
Vector + BM25
Re-ranking
Cross-Encoder
↓
🤖 LLM Processing
GPT-5
Context + Prompt
Response Streaming
Real-time Delivery

System Components

Technical building blocks and Azure services

📁

Document Storage

Azure Blob Storage

Centralized repository for enterprise documents (PDF, DOCX, TXT). Supports versioning and metadata tagging for efficient organization.

⚙️

Document Processing

Azure Functions

Serverless parsing and chunking pipeline. Extracts text, splits into 1000-token segments with 200-token overlap, preserves document structure and metadata.

🧮

Vector Embeddings

Azure OpenAI Embeddings

Converts text chunks into high-dimensional vectors capturing semantic meaning. Enables similarity-based retrieval beyond keyword matching.

🗄️

Hybrid Search Index

Azure AI Search

Combines vector similarity search with BM25 keyword ranking. Provides both semantic understanding and exact term matching for optimal retrieval accuracy.

⚡

Semantic Cache

Azure Cache for Redis

Multi-tier caching strategy. Stores exact query matches and semantically similar queries to minimize redundant LLM calls and reduce response latency.

🤖

Language Model

Azure OpenAI (GPT-5)

Generates contextual answers using retrieved document chunks. Engineered prompts ensure grounded responses with source citations and minimal hallucination.

Data Flow: Question to Answer

Step-by-step journey through the system

1
User Query Received
User submits a question through the interface.
"What is our company's remote work policy?"
2
Semantic Cache Check
System checks Redis cache for identical or similar questions using vector similarity threshold > 0.95.
Cache Hit: Instant Response
Cache Miss: Continue
3
Hybrid Search Execution
Query converted to embedding, then searches Azure AI Search using both vector similarity and BM25 keyword matching.
20 candidate chunks retrieved
4
Document Retrieval & Re-ranking
Top 20 candidate chunks retrieved, then re-ranked using cross-encoder model to select most relevant chunks.
Top 5 chunks selected
5
Context Assembly & Prompt Construction
Selected chunks combined with engineered prompt template, includes instructions for grounding and source citation.
~3000 tokens
6
LLM Generation
GPT-5 processes prompt + context, generates answer with source references, streams response for better UX.
7
Response Caching
Final answer cached in Redis (both exact query and semantic embedding) for future reuse.
TTL: 24 hours
8
Answer Delivered
Structured response with answer text + source document citations returned to user.
"According to our Employee Handbook (Section 4.2), remote work is available 2 days per week for eligible positions..."
🎮

Experience the System Live

See this RAG architecture in action with our interactive visualization. Watch data flow through the pipeline, compare cache hits vs misses, and explore real-time metrics.

Animated Data Flow
Real-time Metrics
Cost Analysis
Interactive Controls
Launch Interactive Demo →