Build RAG Chatbot with LangChain, pgvector, Anthropic Claude 3.7 Sonnet, and IBM multilingual-e5-large

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:

LangChain: An open-source framework that helps you orchestrate the interaction between LLMs, vector stores, embedding models, etc, making it easier to integrate a RAG pipeline.
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.)
Anthropic Claude 3.7 Sonnet: Anthropic Claude 3.7 Sonnet: Claude 3.7 Sonnet is an advanced AI language model developed by Anthropic, designed to offer enhanced reasoning, alignment, and safety. It excels in tasks requiring sophisticated conversational abilities, providing users with natural, context-aware responses while maintaining ethical and safe outputs. Ideal for applications in customer service, content generation, and dialogue systems where safety and clarity are paramount.
IBM multilingual-e5-large: This advanced AI model excels in natural language processing across multiple languages. Designed for tasks such as text generation, translation, and sentiment analysis, it exhibits strong contextual understanding and fluency. Ideal for global enterprises seeking to enhance customer interaction and automate multilingual communication.

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 LangChain

%pip install --quiet --upgrade langchain-text-splitters langchain-community langgraph

Step 2: Install and Set Up Anthropic Claude 3.7 Sonnet

pip install -qU "langchain[anthropic]"

import getpass
import os

if not os.environ.get("ANTHROPIC_API_KEY"):
  os.environ["ANTHROPIC_API_KEY"] = getpass.getpass("Enter API key for Anthropic: ")

from langchain.chat_models import init_chat_model

llm = init_chat_model("claude-3-7-sonnet-latest", model_provider="anthropic")

Step 3: Install and Set Up IBM multilingual-e5-large

pip install -qU langchain-ibm

import getpass
import os

if not os.environ.get("WATSONX_APIKEY"):
  os.environ["WATSONX_APIKEY"] = getpass.getpass("Enter API key for IBM watsonx: ")

from langchain_ibm import WatsonxEmbeddings

embeddings = WatsonxEmbeddings(
    model_id="intfloat/multilingual-e5-large",
    url="https://us-south.ml.cloud.ibm.com",
    project_id="<WATSONX PROJECT_ID>",
)

Step 4: Install and Set Up pgvector

pip install -qU langchain-postgres

from langchain_postgres import PGVector

vector_store = PGVector(
    embeddings=embeddings,
    collection_name="my_docs",
    connection="postgresql+psycopg://...",
)

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 with your own dataset to customize your RAG chatbot.

import bs4
from langchain import hub
from langchain_community.document_loaders import WebBaseLoader
from langchain_core.documents import Document
from langchain_text_splitters import RecursiveCharacterTextSplitter
from langgraph.graph import START, StateGraph
from typing_extensions import List, TypedDict

# Load and chunk contents of the blog
loader = WebBaseLoader(
    web_paths=("https://milvus.io/docs/overview.md",),
    bs_kwargs=dict(
        parse_only=bs4.SoupStrainer(
            class_=("doc-style doc-post-content")
        )
    ),
)

docs = loader.load()

text_splitter = RecursiveCharacterTextSplitter(chunk_size=1000, chunk_overlap=200)
all_splits = text_splitter.split_documents(docs)

# Index chunks
_ = vector_store.add_documents(documents=all_splits)

# Define prompt for question-answering
prompt = hub.pull("rlm/rag-prompt")


# Define state for application
class State(TypedDict):
    question: str
    context: List[Document]
    answer: str


# Define application steps
def retrieve(state: State):
    retrieved_docs = vector_store.similarity_search(state["question"])
    return {"context": retrieved_docs}


def generate(state: State):
    docs_content = "\n\n".join(doc.page_content for doc in state["context"])
    messages = prompt.invoke({"question": state["question"], "context": docs_content})
    response = llm.invoke(messages)
    return {"answer": response.content}


# Compile application and test
graph_builder = StateGraph(State).add_sequence([retrieve, generate])
graph_builder.add_edge(START, "retrieve")
graph = graph_builder.compile()

Test the Chatbot

Yeah! You've built your own chatbot. Let's ask the chatbot a question.

response = graph.invoke({"question": "What data types does Milvus support?"})
print(response["answer"])

Example Output

Milvus supports various data types including sparse vectors, binary vectors, JSON, and arrays. Additionally, it handles common numerical and character types, making it versatile for different data modeling needs. This allows users to manage unstructured or multi-modal data efficiently.

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.

LangChain optimization tips

To optimize LangChain, focus on minimizing redundant operations in your workflow by structuring your chains and agents efficiently. Use caching to avoid repeated computations, speeding up your system, and experiment with modular design to ensure that components like models or databases can be easily swapped out. This will provide both flexibility and efficiency, allowing you to quickly scale your system without unnecessary delays or complications.

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.

Anthropic Claude 3.7 Sonnet Optimization Tips

To optimize the use of Anthropic Claude 3.7 Sonnet in a Retrieval-Augmented Generation (RAG) setup, focus on ensuring high-quality, relevant retrievals from your document store. Preprocess and index your knowledge base effectively by removing redundancy and structuring content for easy retrieval. Additionally, fine-tune the model on domain-specific data to improve response relevance. Consider batching requests for efficiency and adjusting the temperature and top-k parameters to balance creativity and accuracy. Monitor performance closely and adjust query embeddings to fine-tune the retrieval pipeline, ensuring low-latency and high-accuracy answers.

IBM multilingual-e5-large optimization tips

To optimize the IBM multilingual-e5-large model for use in a Retrieval-Augmented Generation (RAG) setup, consider fine-tuning the model on domain-specific data to improve relevance and coherence during generation. Maintain balanced retrieval by leveraging diverse and high-quality datasets to enhance the quality of context provided to the model. Implement caching mechanisms for commonly requested queries to minimize latency and improve response times. Monitor prompt design closely, ensuring they are concise and context-rich to guide the model effectively. Lastly, integrate user feedback to iteratively refine the retrieval and generation processes, thereby enhancing overall performance and user satisfaction.

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 seen firsthand how powerful it is to combine cutting-edge tools like LangChain, pgvector, Anthropic Claude 3.7 Sonnet, and the IBM multilingual-e5-large embedding model into a cohesive RAG system! You learned how LangChain acts as the glue, orchestrating workflows between components—like fetching documents, generating embeddings, and querying your pgvector database for precise context retrieval. The IBM multilingual-e5-large model showcased its multilingual prowess, transforming text into rich embeddings that capture nuanced meaning across languages, while pgvector’s scalability and PostgreSQL integration made storing and searching vectors seamless. Then, Claude 3.7 Sonnet stepped in as the reasoning powerhouse, synthesizing retrieved context into clear, natural responses that feel almost human. Together, these tools form a pipeline that’s greater than the sum of its parts, enabling you to build AI applications that are both intelligent and deeply contextual.

But this tutorial didn’t stop at the basics! You also discovered optimization tricks—like tuning chunk sizes for embeddings or balancing speed/accuracy in vector searches—and even explored tools like the free RAG cost calculator to estimate expenses as you scale. Imagine what’s next: multilingual chatbots, domain-specific research assistants, or real-time knowledge bases tailored to your needs. The skills you’ve gained here are a launchpad. So go ahead—experiment, iterate, and innovate. Tweak parameters, swap components, or integrate new datasets. The world of RAG is yours to explore, and every line of code you write brings us closer to smarter, more responsive AI. Ready to build something amazing? Let’s get started! 🚀

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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