Build RAG Chatbot with Haystack, Milvus, Anthropic Claude 3 Sonnet, and OpenAI text-embedding-ada-002

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.
Milvus: An open-source vector database optimized to store, index, and search large-scale vector embeddings efficiently, perfect for use cases like RAG, semantic search, and recommender systems. If you hate to manage your own infrastructure, we recommend using Zilliz Cloud, which is a fully managed vector database service built on Milvus and offers a free tier supporting up to 1 million vectors.
Anthropic Claude 3 Sonnet: A versatile AI model optimized for complex reasoning, multilingual tasks, and processing long-context inputs. It balances high performance with cost-efficiency, ideal for enterprise-scale applications like data analysis, real-time customer support, content creation, and research tasks requiring accuracy and scalability across diverse industries.
OpenAI text-embedding-ada-002: A state-of-the-art embedding model designed to convert text into high-dimensional vectors, capturing semantic meaning for tasks like search, clustering, and recommendations. Renowned for efficiency, scalability, and cost-effectiveness, it excels in natural language processing applications, particularly where understanding contextual relationships and similarity across large datasets is critical.

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 Anthropic Claude 3 Sonnet

To use Anthropic models, you need an Anthropic API key. You can provide this key in one of the following ways:

The recommended approach is to set it as the ANTHROPIC_API_KEY environment variable.
Alternatively, you can pass it directly when initializing the component using Haystack’s Secret API: Secret.from_token("your-api-key-here").

When configuring Anthropic models, make sure to define the Anthropic model you want to use by specifying it in the model parameter.

This component generates text based on a given prompt. Additionally, you can customize the generation process by providing extra parameters available in the Anthropic Messaging API. These parameters can be passed using generation_kwargs, either during initialization or when calling the run() method. To explore all available options, refer to the Anthropic documentation.

Finally, the run() method requires a single string as input to generate text.

Now let's install the anthropic-haystack package to use the AnthropicGenerator:

pip install anthropic-haystack

from haystack_integrations.components.generators.anthropic import AnthropicGenerator

generator = AnthropicGenerator(model="claude-3-sonnet-20240229")

Step 3: Install and Set Up OpenAI text-embedding-ada-002

Text documents often come with a set of metadata. If they are distinctive and semantically meaningful, you can embed them along with the text of the document to improve retrieval.

from haystack import Document
from haystack.components.embedders import OpenAIDocumentEmbedder

doc = Document(content="some text",meta={"title": "relevant title", "page number": 18})

document_embedder = OpenAIDocumentEmbedder(meta_fields_to_embed=["title"])

docs_w_embeddings = embedder.run(documents=[doc])["documents"]

Now let's install and set up the model.

from haystack import Document
from haystack.components.embedders import OpenAIDocumentEmbedder
from haystack.components.embedders import OpenAITextEmbedder

text_embedder = OpenAITextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-ada-002")
document_embedder = OpenAIDocumentEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-ada-002")

Step 4: Install and Set Up Milvus

pip install --upgrade pymilvus milvus-haystack

from milvus_haystack import MilvusDocumentStore
from milvus_haystack.milvus_embedding_retriever import MilvusEmbeddingRetriever

document_store = MilvusDocumentStore(connection_args={"uri": "./milvus.db"}, drop_old=True,)
retriever = MilvusEmbeddingRetriever(document_store=document_store, top_k=3)

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 = MilvusEmbeddingRetriever(document_store=document_store, top_k=3) 
 
text_embedder = OpenAITextEmbedder(api_key=Secret.from_token("<your-api-key>"), model="text-embedding-ada-002")

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.

Milvus optimization tips

Milvus serves as a highly efficient vector database, critical for retrieval tasks in a RAG system. To optimize its performance, ensure that indexes are properly built to balance speed and accuracy; consider utilizing HNSW (Hierarchical Navigable Small World) for efficient nearest neighbor search where response time is crucial. Partitioning data based on usage patterns can enhance query performance and reduce load times, enabling better scalability. Regularly monitor and adjust cache settings based on query frequency to avoid latency during data retrieval. Employ batch processing for vector insertions, which can minimize database lock contention and enhance overall throughput. Additionally, fine-tune the model parameters by experimenting with the dimensionality of the vectors; higher dimensions can improve retrieval accuracy but may increase search time, necessitating a balance tailored to your specific use case and hardware infrastructure.

Anthropic Claude 3 Sonnet optimization tips

To optimize Claude 3 Sonnet in RAG workflows, refine retrieval chunk sizes to balance context relevance and token efficiency—aim for 500-800 token chunks with 15% overlap. Use structured prompts with XML tags or markdown to separate instructions from retrieved content, explicitly directing Claude to ground responses in provided sources. Lower temperature (0.2-0.4) improves factual consistency, while adding validation steps like “Verify this answer is fully supported by the context” reduces hallucinations. Prioritize system prompts to define response formats and enforce source citation. Test top-p (0.7-0.9) and max tokens to control output breadth without truncation.

OpenAI text-embedding-ada-002 optimization tips

To optimize text-embedding-ada-002 in RAG, ensure input text is clean and concise—remove irrelevant content, truncate long documents to the 8191-token limit, and normalize casing/punctuation. Batch embedding requests to reduce latency and costs. Use cosine similarity for relevance scoring, as embeddings are normalized. Cache frequent or static embeddings to avoid reprocessing. Experiment with chunk sizes (256-512 tokens) to balance context retention and granularity. Monitor embedding quality via downstream task performance and adjust preprocessing or retrieval thresholds as needed.

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?

Congratulations on making it through this tutorial! By now, you’ve seen how the magic of Haystack—a flexible framework for building RAG systems—acts as the glue that connects all the pieces. You learned how Milvus, a high-performance vector database, stores and retrieves embeddings at lightning speed, making it possible to handle massive datasets without breaking a sweat. Then there’s Anthropic Claude 3 Sonnet, the powerhouse LLM that turns retrieved context into coherent, insightful responses, blending creativity with precision. And let’s not forget OpenAI’s text-embedding-ada-002, which transforms raw text into rich numerical representations, ensuring your data is primed for semantic search. Together, these tools form a seamless pipeline: embeddings capture meaning, Milvus fetches relevant chunks, and Claude synthesizes answers that feel almost human. You even picked up pro tips for optimizing latency and accuracy, like tweaking chunk sizes and balancing cost-performance tradeoffs—plus, that free RAG cost calculator is a game-changer for budgeting your projects!

Now imagine what you can build next. Whether it’s a customer support bot, a research assistant, or a personalized learning tool, you’ve got the skills to bring ideas to life. The tools are here, the roadmap is clear, and the possibilities are endless. So go ahead—experiment with different models, fine-tune your retrieval strategies, and push the boundaries of what RAG can do. Every line of code you write is a step toward solving real-world problems in smarter, more impactful ways. The future of AI-powered applications is yours to shape. Let’s get building! 🚀

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

We'd Love to Hear What You Think!

We’d love to hear your thoughts! 🌟 Leave your questions or comments below or join our vibrant Milvus Discord community to share your experiences, ask questions, or connect with thousands of AI enthusiasts. Your journey matters to us!

If you like this tutorial, show your support by giving our Milvus GitHub repo a star ⭐—it means the world to us and inspires us to keep creating! 💖