Build RAG Chatbot with Haystack, Milvus, OpenAI GPT-o3-mini, and Ollama bge-m3

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.
OpenAI GPT-o3-mini: A lightweight, efficient language model optimized for rapid text generation and comprehension. Designed to balance performance with resource efficiency, it excels in applications requiring quick responses and lower computational costs, such as mobile apps, customer service chatbots, and real-time content moderation. Ideal for developers seeking scalable AI solutions with minimal infrastructure demands.
Ollama BGE-M3: A multilingual embedding model optimized for semantic understanding, retrieval, and clustering. Strengths include high accuracy across 100+ languages, robust performance in dense retrieval tasks, and scalability. Ideal for enterprise search systems, cross-lingual applications, and AI-driven knowledge management requiring precise semantic analysis.

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 OpenAI GPT-o3-mini

To use OpenAI models, you need to get an OpenAI API key. The Haystack integration with OpenAI models uses an OPENAI_API_KEY environment variable by default. Otherwise, you can pass an API key at initialization with api_key:

generator = OpenAIGenerator(api_key=Secret.from_token("<your-api-key>"), model="gpt-4o-mini")

Then, the generator component needs a prompt to operate, but you can pass any text generation parameters valid for the openai.ChatCompletion.create method directly to this component using the generation_kwargs parameter, both at initialization and to run() method. For more details on the parameters supported by the OpenAI API, refer to the OpenAI documentation.

Now let's install and set up OpenAI models.

from haystack.components.generators import OpenAIGenerator

generator = OpenAIGenerator(model="o3-mini", api_key=Secret.from_token("<your-api-key>"))

Step 3: Install and Set Up Ollama bge-m3

pip install ollama-haystack

Make sure that you have a running Ollama model (either through a docker container, or locally hosted). No other configuration is necessary as Ollama has the embedding API built in.

from haystack import Document
from haystack_integrations.components.embedders.ollama import OllamaDocumentEmbedder
from haystack_integrations.components.embedders.ollama import OllamaTextEmbedder

text_embedder = OllamaTextEmbedder(model="bge-m3")
document_embedder = OllamaDocumentEmbedder(model="bge-m3")

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 = OllamaTextEmbedder(model="bge-m3")

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.

OpenAI GPT-3-mini optimization tips

Optimize OpenAI GPT-3-mini in RAG by chunking input data into smaller, semantically coherent segments to reduce token waste and improve retrieval relevance. Use structured prompts with explicit instructions (e.g., "Answer based on: [context]") to guide outputs. Fine-tune temperature (0.2-0.5 for precision) and max tokens to balance brevity and completeness. Cache frequent queries to reduce latency and costs. Preprocess retrieved documents to remove redundancy and align with query intent. Monitor outputs via metrics like BLEU or ROUGE and iterate based on user feedback.

Ollama bge-m3 optimization tips

To optimize Ollama bge-m3 in a RAG setup, ensure input text is preprocessed (lowercasing, removing noise) and split into semantically coherent chunks (300-500 tokens) to balance retrieval accuracy and computational load. Use dynamic pooling to prioritize key phrases in embeddings. Fine-tune the model on domain-specific data with contrastive learning to enhance relevance. Adjust temperature and top-k sampling for controlled generation. Leverage batch inference for parallel processing and enable hardware acceleration (e.g., CUDA) for faster embeddings. Regularly validate retrieval performance with benchmark datasets to refine thresholds and ranking strategies.

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 RAG system from the ground up! You learned how Haystack (Haystack) acts as the flexible orchestration framework, seamlessly connecting every piece of the pipeline. Milvus stepped in as your high-performance vector database, handling the heavy lifting of storing and retrieving embeddings at scale, while Ollama’s bge-m3 embedding model transformed raw text into rich numerical representations, ensuring your data is primed for semantic search. The OpenAI GPT-3-mini (or your chosen LLM) then took center stage, generating human-like responses by synthesizing retrieved context with its vast knowledge. Together, these tools form a dynamic RAG pipeline that’s both efficient and adaptable—whether you’re building a chatbot, a research assistant, or a knowledge hub, you’ve seen how to tailor each component to your needs. Plus, you picked up pro tips like optimizing chunking strategies, balancing speed with accuracy, and even using a free RAG cost calculator to budget your projects wisely.

Now it’s your turn to run with this knowledge! You’ve got the blueprint to create RAG applications that feel almost magical—systems that understand context, retrieve precise information, and converse naturally. Experiment with tweaking the pipeline, swap in different models or databases, and explore how small optimizations can lead to big improvements. Remember, every iteration brings you closer to building something truly innovative. The tools are in your hands, the possibilities are endless, and the future of intelligent apps is yours to shape. So fire up your code editor, embrace the trial-and-error, and start crafting RAG solutions that wow users and push boundaries. The next breakthrough? It could be yours! 🚀

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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