Build RAG Chatbot with LangChain, pgvector, Mistral AI Mistral Large, and IBM all-minilm-l12-v2

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.)
Mistral AI Mistral Large: This model offers a high-performance solution for a range of natural language processing tasks. With a focus on large-scale text generation and comprehension, it excels in handling complex queries and generating nuanced responses. Ideal for applications in content creation, conversational agents, and research analysis, Mistral Large combines versatility with efficiency.
IBM all-minilm-l12-v2: This model is a compact yet powerful transformer-based architecture optimized for natural language understanding and processing tasks. It excels in scenarios requiring efficient computation without sacrificing performance, making it ideal for applications in chatbots, information retrieval, and sentiment analysis. Its lightweight design enables integration in resource-constrained environments while maintaining competitive accuracy.

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 Mistral AI Mistral Large

pip install -qU "langchain[mistralai]"

import getpass
import os

if not os.environ.get("MISTRAL_API_KEY"):
  os.environ["MISTRAL_API_KEY"] = getpass.getpass("Enter API key for Mistral AI: ")

from langchain.chat_models import init_chat_model

llm = init_chat_model("mistral-large-latest", model_provider="mistralai")

Step 3: Install and Set Up IBM all-minilm-l12-v2

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="sentence-transformers/all-minilm-l12-v2",
    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.

Mistral AI Mistral Large optimization tips

Mistral Large is a high-capacity model suitable for complex reasoning and in-depth retrieval tasks in RAG applications. To improve efficiency, use advanced reranking models to prioritize top-quality retrieval results, ensuring only the most relevant information is included in the context window. Optimize token efficiency by segmenting and structuring input prompts logically, avoiding excessive context that may slow down inference. Fine-tune temperature (0.1–0.2 for factual queries, up to 0.5 for creative reasoning) and sampling parameters to maintain response quality. Use dynamic retrieval strategies—retrieving broader context for ambiguous queries and narrowing the scope for well-defined questions. Deploy caching and asynchronous processing for handling high-throughput workloads efficiently. If running Mistral Large in a cloud environment, allocate resources dynamically to balance performance and cost.

IBM all-minilm-l12-v2 optimization tips

To optimize the IBM all-minilm-l12-v2 model in a Retrieval-Augmented Generation (RAG) setup, consider fine-tuning it on domain-specific datasets to enhance relevance and accuracy for your particular use case. Implement model distillation techniques to reduce inference time while maintaining performance. Additionally, ensure efficient batch processing by adjusting the maximum sequence length based on your input data, and utilize mixed precision training to improve computational efficiency. Regularly evaluate the model's performance with various retrieval methods to identify the best combination and consider employing caching strategies for frequently accessed data to minimize latency. Finally, experiment with different hyperparameters, like learning rate and dropout rates, during fine-tuning to achieve optimal results.

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 fully functional RAG system! You learned how LangChain acts as the glue, orchestrating workflows to seamlessly connect your data pipeline, pgvector as the vector database to store and retrieve embeddings efficiently, Mistral AI’s Mistral Large as the LLM powerhouse for generating nuanced, context-aware responses, and IBM’s all-minilm-l12-v2 embedding model to transform text into meaningful vector representations. Together, these components form a dynamic pipeline that pulls real-time data, grounds responses in your custom knowledge base, and delivers intelligent answers with precision. You also discovered practical optimization tricks—like tuning chunk sizes for embeddings or adjusting similarity search thresholds—to balance speed and accuracy, ensuring your RAG system runs smoothly without breaking the bank. And let’s not forget the bonus: that free RAG cost calculator you explored helps you estimate expenses upfront, making it easier to scale smartly and sustainably.

Now you’re equipped with the tools and confidence to create RAG applications that feel almost magical! Whether you’re building chatbots, research assistants, or AI-enhanced search tools, you’ve seen firsthand how flexible and powerful this stack can be. The best part? You’re not just following steps—you’re understanding why each piece matters and how to tweak them for your unique use case. So go ahead—experiment, iterate, and let your creativity run wild! Optimize those embeddings, play with Mistral’s parameters, or even swap in different models to see how it all clicks. The future of intelligent apps is in your hands, and you’ve got everything you need to start shaping it. Happy building—your next breakthrough is just a prompt away! 🚀

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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