What it is
A practical definition
RAG combines retrieval over store data with generation, so the model answers from the live catalog, prices and stock instead of from memory.
Example in ecommerce
A shopper asks which refrigerators fit under $800: the system first retrieves the models that qualify and only then writes the consultation.
Business impact
Cuts the share of inaccurate answers and makes the assistant useful in search, on the product page and in the cart.