Build RAG Chatbot with Haystack, Pgvector, Google Vertex AI Gemini 2.0 Pro, and Cohere embed-english-light-v2.0

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.
Pgvector: an open-source extension for PostgreSQL that enables efficient storage and querying of high-dimensional vector data, essential for machine learning and AI applications. Designed to handle embeddings, it supports fast approximate nearest neighbor (ANN) searches using algorithms like HNSW and IVFFlat. Since it is just a vector search add-on to traditional search 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 Pro: A multimodal AI model optimized for complex enterprise tasks, offering advanced reasoning, high accuracy, and scalability. It excels in processing text, code, and structured data, with seamless integration into Google Cloud. Ideal for data analysis, content generation, and automation in regulated industries, leveraging robust security and cloud-native deployment.
Cohere embed-english-light-v2.0: A lightweight embedding model optimized to convert English text into dense vector representations efficiently. It excels in semantic search, clustering, and similarity tasks, balancing speed and accuracy. Ideal for real-time applications, cost-sensitive deployments, and resource-constrained environments requiring scalable, rapid text analysis without compromising performance.

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 Pro

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-pro-exp-02-05")

Step 3: Install and Set Up Cohere embed-english-light-v2.0

To start using this integration with Haystack, install it with:

pip install cohere-haystack

from haystack import Document
from haystack_integrations.components.embedders.cohere.document_embedder import CohereDocumentEmbedder
from haystack_integrations.components.embedders.cohere.text_embedder import CohereTextEmbedder

text_embedder = CohereTextEmbedder(model="embed-english-light-v2.0")
document_embedder = CohereDocumentEmbedder(model="embed-english-light-v2.0")

Step 4: Install and Set Up Pgvector

To quickly set up a PostgreSQL database with pgvector, you can use Docker:

docker run -d -p 5432:5432 -e POSTGRES_USER=postgres -e POSTGRES_PASSWORD=postgres -e POSTGRES_DB=postgres ankane/pgvector

To use pgvector with Haystack, install the pgvector-haystack integration:

pip install pgvector-haystack

import os
from haystack_integrations.document_stores.pgvector import PgvectorDocumentStore
from haystack_integrations.components.retrievers.pgvector import PgvectorEmbeddingRetriever

os.environ["PG_CONN_STR"] = "postgresql://postgres:postgres@localhost:5432/postgres"

document_store = PgvectorDocumentStore()
retriever = PgvectorEmbeddingRetriever(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 = PgvectorEmbeddingRetriever(document_store=document_store) 
 text_embedder = CohereTextEmbedder(model="embed-english-light-v2.0")

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.

pgvector optimization tips

To optimize pgvector in a Retrieval-Augmented Generation (RAG) setup, consider indexing your vectors using GiST or IVFFlat to significantly speed up search queries and improve retrieval performance. Make sure to leverage parallelization for query execution, allowing multiple queries to be processed simultaneously, especially for large datasets. Optimize memory usage by tuning the vector storage size and using compressed embeddings where possible. To further enhance query speed, implement pre-filtering techniques to narrow down search space before querying. Regularly rebuild indexes to ensure they are up to date with any new data. Fine-tune vectorization models to reduce dimensionality without sacrificing accuracy, thus improving both storage efficiency and retrieval times. Finally, manage resource allocation carefully, utilizing horizontal scaling for larger datasets and offloading intensive operations to dedicated processing units to maintain responsiveness during high-traffic periods.

Google Vertex AI Gemini 2.0 Pro optimization tips

To enhance performance in RAG, fine-tune Gemini 2.0 Pro’s context window by truncating irrelevant sections of retrieved documents, prioritize concise chunks (500-800 tokens) to balance detail and processing speed. Use structured prompts with explicit instructions (e.g., “Answer using ONLY the context below”) to reduce hallucinations. Enable low-temperature sampling (0.1–0.3) for factual accuracy, and leverage batch inference for parallel processing. Regularly validate outputs against retrieval quality, and use Vertex AI’s monitoring tools to track latency, token usage, and error rates for iterative tuning.

Cohere embed-english-light-v2.0 optimization tips

To optimize Cohere embed-english-light-v2.0 in RAG, preprocess input text by truncating or chunking documents to the model’s 512-token limit for efficiency. Use batch processing to encode multiple texts simultaneously, reducing API overhead. Normalize embeddings to improve cosine similarity accuracy. Pair with a fast vector database (e.g., FAISS) for low-latency retrieval. Cache frequent queries to minimize redundant computations. Monitor embedding quality via retrieval hit rates and adjust text chunking strategies for domain-specific contexts. Fine-tune batch sizes to balance speed and memory usage.

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—and what a journey it’s been! You learned how Haystack acts as the backbone, orchestrating every step of the pipeline with its flexible framework. From ingesting data to routing queries, it’s the glue that holds everything together. Then came Pgvector, your trusty vector database, which stores and retrieves embeddings at lightning speed, ensuring your system can quickly find the most relevant information. Speaking of embeddings, Cohere’s embed-english-light-v2.0 transformed raw text into rich, semantic vectors, giving your RAG system the contextual understanding it needs to shine. And let’s not forget Google Vertex AI Gemini 2.0 Pro, the powerhouse LLM that turned those retrieved snippets into coherent, human-like answers—like having a brilliant collaborator who never runs out of insights! Together, these tools create a seamless flow: retrieve, generate, and deliver knowledge like never before. How cool is that?

But wait—there’s more! You also picked up pro tips for optimizing performance, like fine-tuning chunk sizes and balancing latency with accuracy. Plus, the free RAG cost calculator from the tutorial empowers you to estimate expenses upfront, so you can build smarter without surprises. Imagine what’s next: tweaking parameters for niche use cases, experimenting with hybrid search strategies, or even integrating multimedia data. The possibilities are endless, and you’re now equipped to explore them all. So go ahead—dive into your code editor, play with these tools, and watch your ideas come alive. Whether you’re building a customer support bot, a research assistant, or something entirely new, the future of intelligent apps is in your hands. Start creating, keep iterating, and let your RAG system blow the world away. The adventure’s just beginning! 🚀

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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