Build RAG Chatbot with Haystack, Milvus, Mistral 7B, 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.
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.
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 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 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.

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.

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?

By diving into this tutorial, you’ve unlocked the power of combining cutting-edge tools to build a robust RAG system from scratch! You learned how Haystack acts as the flexible orchestration layer, seamlessly connecting components to streamline your workflow. With Milvus as your vector database, you saw firsthand how to store and retrieve embeddings at lightning speed, ensuring your system handles real-time queries effortlessly. Mistral 7B stepped in as your open-source LLM powerhouse, generating human-like responses by leveraging the context fetched from Milvus, while OpenAI’s text-embedding-ada-002 transformed raw text into rich numerical representations, bridging the gap between unstructured data and actionable insights. Together, these tools formed a cohesive pipeline—ingesting data, embedding it, storing it efficiently, and generating intelligent, context-aware answers.

But the learning didn’t stop there! You also picked up pro tips for optimizing performance, like balancing chunk sizes for better retrieval and tuning metadata filters to refine results. The tutorial even introduced a free RAG cost calculator to help you estimate expenses and scale smartly. Now that you’ve seen how these pieces fit together, imagine what’s next: customizing Mistral for niche domains, experimenting with hybrid search strategies in Milvus, or integrating real-time data streams. The world of RAG is yours to explore—so take this knowledge, tweak it, expand it, and build solutions that amaze. Start small, iterate fast, and watch your ideas come to life. The future of intelligent applications is in your hands—go create it! 🚀

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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