Build RAG Chatbot with Haystack, Haystack In-memory store, Mistral 7B, and jina-embeddings-v3

Introduction to RAG

Retrieval-Augmented Generation (RAG) is a game-changer for GenAI applications, especially in conversational AI. It combines the power of pre-trained large language models (LLMs) like OpenAI’s GPT with external knowledge sources stored in vector databases such as Milvus and Zilliz Cloud, allowing for more accurate, contextually relevant, and up-to-date response generation. A RAG pipeline usually consists of four basic components: a vector database, an embedding model, an LLM, and a framework.

Key Components We'll Use for This RAG Chatbot

This tutorial shows you how to build a simple RAG chatbot in Python using the following components:

Haystack: An open-source Python framework designed for building production-ready NLP applications, particularly question answering and semantic search systems. Haystack excels at retrieving information from large document collections through its modular architecture that combines retrieval and reader components. Ideal for developers creating search applications, chatbots, and knowledge management systems that require efficient document processing and accurate information extraction from unstructured text.
Haystack in-memory store: a very simple, in-memory document store with no extra services or dependencies. It is great for experimenting with Haystack, and we do not recommend using it for production. If you want a much more scalable solution for your apps or even enterprise projects, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvusand offers a free tier supporting up to 1 million vectors.)
Mistral 7B: A 7-billion parameter open-source language model optimized for efficiency and versatility in natural language processing. It excels in text generation, summarization, and question answering, balancing performance with lower computational demands. Ideal for chatbots, content creation, code generation, and real-time applications where resource efficiency and rapid deployment are critical.
Jina-Embeddings-v3: A state-of-the-art embedding model designed for high-dimensional vector representations of text, excelling in multilingual understanding and long-context retention. Its scalable architecture ensures robust performance in semantic search, clustering, and retrieval-augmented generation (RAG) systems. Ideal for applications requiring precise semantic analysis across diverse languages and lengthy documents, combining accuracy with efficiency.

By the end of this tutorial, you’ll have a functional chatbot capable of answering questions based on a custom knowledge base.

Note: Since we may use proprietary models in our tutorials, make sure you have the required API key beforehand.

Step 1: Install and Set Up Haystack

import os
import requests

from haystack import Pipeline
from haystack.components.converters import MarkdownToDocument

from haystack.components.preprocessors import DocumentSplitter
from haystack.components.writers import DocumentWriter

Step 2: Install and Set Up Mistral 7B

To use Mistral models, you need first to get a Mistral API key. You can write this key in:

The api_key init parameter using Secret API
The MISTRAL_API_KEY environment variable (recommended)

Now, after you get the API key, let's install the Install the mistral-haystack package.

pip install mistral-haystack

from haystack_integrations.components.generators.mistral import MistralChatGenerator
from haystack.components.generators.utils import print_streaming_chunk
from haystack.dataclasses import ChatMessage
from haystack.utils import Secret

generator = MistralChatGenerator(api_key=Secret.from_env_var("MISTRAL_API_KEY"), streaming_callback=print_streaming_chunk, model='open-mistral-7b')

Step 3: Install and Set Up jina-embeddings-v3

pip install jina-haystack

from haystack_integrations.components.embedders.jina import JinaTextEmbedder
from haystack_integrations.components.embedders.jina import JinaDocumentEmbedder

text_embedder = JinaTextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="jina-embeddings-v3")
document_embedder = JinaDocumentEmbedder(api_key=Secret.from_token("<your-api-key>"), model="jina-embeddings-v3")

Step 4: Install and Set Up Haystack In-memory store

from haystack.document_stores.in_memory import InMemoryDocumentStore
from haystack.components.retrievers import InMemoryEmbeddingRetriever

document_store = InMemoryDocumentStore()
retriever=InMemoryEmbeddingRetriever(document_store=document_store))

Step 5: Build a RAG Chatbot

Now that you’ve set up all components, let’s start to build a simple chatbot. We’ll use the Milvus introduction doc as a private knowledge base. You can replace it your own dataset to customize your RAG chatbot.

url = 'https://raw.githubusercontent.com/milvus-io/milvus-docs/refs/heads/v2.5.x/site/en/about/overview.md'
example_file = 'example_file.md'
response = requests.get(url)
with open(example_file, 'wb') as f:
    f.write(response.content)
file_paths = [example_file]  # You can replace it with your own file paths.

indexing_pipeline = Pipeline()
indexing_pipeline.add_component("converter", MarkdownToDocument())
indexing_pipeline.add_component("splitter", DocumentSplitter(split_by="sentence", split_length=2))
indexing_pipeline.add_component("embedder", document_embedder)
indexing_pipeline.add_component("writer", DocumentWriter(document_store))
indexing_pipeline.connect("converter", "splitter")
indexing_pipeline.connect("splitter", "embedder")
indexing_pipeline.connect("embedder", "writer")
indexing_pipeline.run({"converter": {"sources": file_paths}})

# print("Number of documents:", document_store.count_documents())
  
question = "What is Milvus?"  # You can replace it with your own question.

retrieval_pipeline = Pipeline()
retrieval_pipeline.add_component("embedder", text_embedder)
retrieval_pipeline.add_component("retriever", retriever)
retrieval_pipeline.connect("embedder", "retriever")

retrieval_results = retrieval_pipeline.run({"embedder": {"text": question}})

# for doc in retrieval_results["retriever"]["documents"]:
#     print(doc.content)
#     print("-" * 10)

from haystack.utils import Secret
from haystack.components.builders import PromptBuilder

retriever=InMemoryEmbeddingRetriever(document_store=document_store) 
 text_embedder = JinaTextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="jina-embeddings-v3")

prompt_template = """Answer the following query based on the provided context. If the context does
                     not include an answer, reply with 'I don't know'.\n
                     Query: {{query}}
                     Documents:
                     {% for doc in documents %}
                        {{ doc.content }}
                     {% endfor %}
                     Answer: 
                  """

rag_pipeline = Pipeline()
rag_pipeline.add_component("text_embedder", text_embedder)
rag_pipeline.add_component("retriever", retriever)
rag_pipeline.add_component("prompt_builder", PromptBuilder(template=prompt_template))
rag_pipeline.add_component("generator", generator)
rag_pipeline.connect("text_embedder.embedding", "retriever.query_embedding")
rag_pipeline.connect("retriever.documents", "prompt_builder.documents")
rag_pipeline.connect("prompt_builder", "generator")

results = rag_pipeline.run({"text_embedder": {"text": question}, "prompt_builder": {"query": question},})
print('RAG answer:\n', results["generator"]["replies"][0])

Optimization Tips

As you build your RAG system, optimization is key to ensuring peak performance and efficiency. While setting up the components is an essential first step, fine-tuning each one will help you create a solution that works even better and scales seamlessly. In this section, we’ll share some practical tips for optimizing all these components, giving you the edge to build smarter, faster, and more responsive RAG applications.

Haystack optimization tips

To optimize Haystack in a RAG setup, ensure you use an efficient retriever like FAISS or Milvus for scalable and fast similarity searches. Fine-tune your document store settings, such as indexing strategies and storage backends, to balance speed and accuracy. Use batch processing for embedding generation to reduce latency and optimize API calls. Leverage Haystack's pipeline caching to avoid redundant computations, especially for frequently queried documents. Tune your reader model by selecting a lightweight yet accurate transformer-based model like DistilBERT to speed up response times. Implement query rewriting or filtering techniques to enhance retrieval quality, ensuring the most relevant documents are retrieved for generation. Finally, monitor system performance with Haystack’s built-in evaluation tools to iteratively refine your setup based on real-world query performance.

Haystack in-memory store optimization tips

Haystack in-memory store is just a very simple, in-memory document store with no extra services or dependencies. We recommend that you just experiment it with RAG pipeline within your Haystack framework, and we do not recommend using it for production. If you want a much more scalable solution for your apps or even enterprise projects, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvusand offers a free tier supporting up to 1 million vectors

Mistral 7B optimization tips

To enhance Mistral 7B's performance in RAG, prioritize prompt engineering with concise, structured instructions and few-shot examples to guide outputs. Use smaller text chunks (256-512 tokens) for retrieval to reduce noise and improve relevance. Fine-tune Mistral 7B on domain-specific data using LoRA for efficient adaptation. Enable 4-bit quantization via Hugging Face’s bitsandbytes to reduce memory usage without significant accuracy loss. Adjust temperature (0.1-0.3) and top-p (0.9-0.95) for balanced creativity and precision. Cache frequent queries and precompute embeddings to accelerate inference.

Jina-embeddings-v3 optimization tips

To optimize Jina-embeddings-v3 in a RAG setup, preprocess input text by normalizing casing, removing redundant whitespace, and truncating to the model’s maximum sequence length (e.g., 8,192 tokens). Batch embedding generation for parallel processing, balancing GPU/CPU memory constraints. Use FP16 precision for faster inference if hardware supports it. Cache frequently accessed document embeddings to reduce recomputation. Experiment with dimensionality reduction (e.g., PCA) if downstream tasks tolerate lower-dimensional vectors. Regularly update to the latest model version for performance improvements. Monitor latency and adjust batch sizes dynamically for throughput-latency trade-offs.

By implementing these tips across your components, you'll be able to enhance the performance and functionality of your RAG system, ensuring it’s optimized for both speed and accuracy. Keep testing, iterating, and refining your setup to stay ahead in the ever-evolving world of AI development.

RAG Cost Calculator: A Free Tool to Calculate Your Cost in Seconds

Estimating the cost of a Retrieval-Augmented Generation (RAG) pipeline involves analyzing expenses across vector storage, compute resources, and API usage. Key cost drivers include vector database queries, embedding generation, and LLM inference.

RAG Cost Calculator is a free tool that quickly estimates the cost of building a RAG pipeline, including chunking, embedding, vector storage/search, and LLM generation. It also helps you identify cost-saving opportunities and achieve up to 10x cost reduction on vector databases with the serverless option.

Calculate your RAG cost now.

Calculate your RAG cost

What Have You Learned?

By diving into this tutorial, you’ve unlocked the magic of building a RAG system from the ground up! You learned how Haystack, the flexible framework, acts as the backbone, seamlessly connecting your components and orchestrating the entire pipeline. With the Haystack In-memory Store, you discovered how to efficiently store and retrieve vectorized data, ensuring lightning-fast access to context. Then came Mistral 7B, the powerhouse LLM that generates crisp, human-like responses by leveraging that retrieved context—proving you don’t need massive compute to create smart applications. And let’s not forget jina-embeddings-v3, which transforms text into rich, meaningful vectors, making sure your system understands the nuances of your data. Together, these tools form a RAG pipeline that’s not just functional but optimized—whether you’re answering questions, summarizing content, or tackling complex queries. Plus, you picked up pro tips like tweaking chunking strategies and balancing speed-accuracy trade-offs, along with a handy free RAG cost calculator to keep your projects budget-friendly.

Now, imagine what’s next! You’ve got the blueprint to create, experiment, and innovate. Maybe you’ll tweak retrieval parameters for niche use cases, scale up with different databases, or even fine-tune Mistral for your domain. The tools are yours, the knowledge is fresh—why not start today? Use that cost calculator to plan smartly, apply the optimization hacks, and watch your ideas come alive. Whether you’re building a chatbot, a research assistant, or something entirely new, the sky’s the limit. So go ahead—dive in, iterate fearlessly, and let your RAG applications shine. The future of intelligent systems is in your hands, and it’s time to make it happen! 🚀

Further Resources

🌟 In addition to this RAG tutorial, unleash your full potential with these incredible resources to level up your RAG skills.

How to Build a Multimodal RAG | Documentation
How to Enhance the Performance of Your RAG Pipeline
Graph RAG with Milvus | Documentation
How to Evaluate RAG Applications - Zilliz Learn
Generative AI Resource Hub | Zilliz

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