Build RAG Chatbot with Haystack, OpenSearch, Google Vertex AI Gemini 2.0 Flash Thinking, and BAAI llm-embedder

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.
OpenSearch: An open-source search and analytics suite derived from Elasticsearch. It offers robust full-text search and real-time analytics, with vector search available as an add-on for similarity-based queries, extending its capabilities to handle high-dimensional data. Since it is just a vector search add-on rather than a purpose-built vector database, it lacks scalability and availability and many other advanced features required by enterprise-level applications. Therefore, if you prefer a much more scalable solution or hate to manage your own infrastructure, we recommend using Zilliz Cloud, which is a fully managed vector database service built on the open-source Milvus and offers a free tier supporting up to 1 million vectors.)
Google Vertex AI Gemini 2.0 Flash: A lightweight, high-speed AI model optimized for rapid inference and scalable tasks. It excels in real-time applications requiring low latency and cost-efficiency, such as chatbots, content summarization, and data processing. Ideal for enterprises needing fast, reliable outputs without compromising performance in high-throughput environments.
BAAI llm-embedder: A unified embedding model designed to enhance retrieval-augmented LLMs by generating high-quality text representations. It excels in cross-domain knowledge integration, robustness, and semantic accuracy, making it ideal for retrieval systems, question answering, and textual analysis tasks requiring precise contextual understanding and scalability.

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 Google Vertex AI Gemini 2.0 Flash Thinking

Using theVertexAIGeminiGenerator with Haystack requires authentication using Google Cloud Application Default Credentials (ADCs). This means your application must be set up with credentials that allow it to access Google Cloud services. If you're not sure how to configure ADCs, check the official Google documentation for setup instructions.

It's important to use a Google Cloud account that has the right permissions to access a project with Google Vertex AI endpoints. Without proper access, the generator won’t work as expected.

To find your project ID, you can either look it up in the Google Cloud Console under the resource manager or run the following command in your terminal.

Now let's install and set up this model.

pip install google-vertex-haystack

from haystack_integrations.components.generators.google_vertex import VertexAIGeminiGenerator

generator = VertexAIGeminiGenerator(model="gemini-2.0-flash-thinking-exp-01-21")

Step 3: Install and Set Up BAAI llm-embedder

from haystack import Document
from haystack.components.embedders import SentenceTransformersDocumentEmbedder
from haystack.components.embedders import SentenceTransformersTextEmbedder

doc_embedder = SentenceTransformersDocumentEmbedder(model="BAAI/llm-embedder")
doc_embedder.warm_up()
text_embedder = SentenceTransformersTextEmbedder(model="BAAI/llm-embedder")
text_embedder.warm_up()

Step 4: Install and Set Up OpenSearch

If you have Docker set up, we recommend pulling the Docker image and running it.

docker pull opensearchproject/opensearch:2.11.0
docker run -p 9200:9200 -p 9600:9600 -e "discovery.type=single-node" -e "ES_JAVA_OPTS=-Xms1024m -Xmx1024m" opensearchproject/opensearch:2.11.0

Once you have a running OpenSearch instance, install the opensearch-haystack integration:

pip install opensearch-haystack

from haystack_integrations.components.retrievers.opensearch  import OpenSearchEmbeddingRetriever
from haystack_integrations.document_stores.opensearch import OpenSearchDocumentStore

document_store = OpenSearchDocumentStore(hosts="http://localhost:9200", use_ssl=True,
verify_certs=False, http_auth=("admin", "admin"))
retriever = OpenSearchEmbeddingRetriever(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 = OpenSearchEmbeddingRetriever(document_store=document_store) 
 text_embedder = SentenceTransformersTextEmbedder(model="BAAI/llm-embedder")
text_embedder.warm_up()

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.

OpenSearch optimization tips

To optimize OpenSearch in a Retrieval-Augmented Generation (RAG) setup, fine-tune indexing by enabling efficient mappings and reducing unnecessary stored fields. Use HNSW for vector search to speed up similarity queries while balancing recall and latency with appropriate ef_search and ef_construction values. Leverage shard and replica settings to distribute load effectively, and enable caching for frequent queries. Optimize text-based retrieval with BM25 tuning and custom analyzers for better relevance. Regularly monitor cluster health, index size, and query performance using OpenSearch Dashboards and adjust configurations accordingly.

Google Vertex AI Gemini 2.0 Flash optimization tips

To optimize Gemini 2.0 Flash in RAG, fine-tune input chunking to balance context relevance and token limits—aim for 512–1024 tokens. Use structured queries with explicit filters (e.g., metadata, date ranges) to improve retrieval precision. Adjust temperature (0.1–0.3) and top-p (0.7–0.9) to reduce hallucination while maintaining coherence. Cache frequent retrievals to minimize latency and costs. Preprocess documents to remove noise and enhance embeddings. Test hybrid search (keyword + vector) for complex queries. Monitor token usage and response quality via Vertex AI’s logging tools for iterative tuning.

BAAI llm-embedder optimization tips

Optimize BAAI llm-embedder in RAG by normalizing input text (lowercasing, removing special characters) to reduce noise, batching inference for efficiency, and fine-tuning on domain-specific data if labeled examples are available. Use dynamic truncation or padding to handle variable-length inputs, and cache frequent queries to minimize recomputation. Experiment with pooling strategies (e.g., CLS token vs. mean-pooling) for optimal semantic capture. Regularly evaluate retrieval accuracy via recall@k metrics and consider hybrid retrieval (dense + sparse) to balance precision and coverage. Monitor latency and memory usage to scale effectively.

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 now, you’ve unlocked the magic of building a RAG system from the ground up! You’ve learned how Haystack serves as the flexible framework that stitches everything together, orchestrating the flow of data between components like a well-choreographed dance. OpenSearch steps in as your powerful vector database, storing and retrieving embeddings at lightning speed, ensuring your system can handle complex queries with ease. The BAAI llm-embedder model transforms text into rich, semantic embeddings, capturing the nuance of language so your RAG pipeline understands context deeply. And when it’s time to generate responses, Google Vertex AI Gemini 2.0 Flash shines with its ability to deliver fast, accurate, and natural-sounding answers—perfect for real-world applications. Together, these tools create a seamless pipeline where retrieval meets generation, turning raw data into actionable insights!

But you didn’t just learn the basics—you picked up pro tips to supercharge your system! From optimizing chunking strategies to balancing speed and accuracy with hybrid search, you’re equipped to fine-tune performance. Plus, that free RAG cost calculator? It’s your secret weapon for budgeting smarter and scaling confidently. Imagine what you can build now: chatbots that feel human, search engines that anticipate needs, or tools that democratize knowledge. The possibilities are endless, and you’ve got the skills to explore them all. So go ahead—dive into your next project, experiment fearlessly, and let your creativity run wild. The future of AI-powered applications is yours to shape, and this tutorial was just the beginning. Let’s build something amazing! 🚀

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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