Build RAG Chatbot with Llamaindex, HNSWlib, OpenAI GPT-4, 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:

Llamaindex: a data framework that connects large language models (LLMs) with various data sources, enabling efficient retrieval-augmented generation (RAG). It helps structure, index, and query private or external data, optimizing LLM applications for search, chatbots, and analytics.
HNSWlib: a high-performance C++ and Python library for approximate nearest neighbor (ANN) search using the Hierarchical Navigable Small World (HNSW) algorithm. It provides fast, scalable, and efficient similarity search in high-dimensional spaces, making it ideal for vector databases and AI applications.
OpenAI GPT-4: A state-of-the-art multimodal AI model designed for advanced natural language understanding and generation, capable of processing both text and image inputs. Its strengths include superior reasoning, contextual accuracy, and adaptability across domains. Ideal for complex tasks like content creation, data analysis, technical support, and educational tools, while maintaining enhanced safety and ethical alignment compared to predecessors.
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 Llamaindex

pip install llama-index

Step 2: Install and Set Up OpenAI GPT-4

%pip install llama-index llama-index-llms-openai

from llama_index.llms.openai import OpenAI

llm = OpenAI(
    model="gpt-4",
    # api_key="some key",  # uses OPENAI_API_KEY env var by default
)

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

%pip install llama-index-embeddings-cohere

from llama_index.embeddings.cohere import CohereEmbedding

embed_model = CohereEmbedding(
    api_key=cohere_api_key,
    model_name="embed-english-light-v2.0",
)

Step 4: Install and Set Up HNSWlib

%pip install llama-index-vector-stores-hnswlib

from llama_index.vector_stores.hnswlib import HnswlibVectorStore
from llama_index.core import (
    VectorStoreIndex,
    StorageContext,
    SimpleDirectoryReader,
)

vector_store = HnswlibVectorStore.from_params(
    space="ip",
    dimension=embed_model._model.get_sentence_embedding_dimension(),
    max_elements=1000,
)

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 requests

from llama_index.core import SimpleDirectoryReader

# load documents
url = 'https://raw.githubusercontent.com/milvus-io/milvus-docs/refs/heads/v2.5.x/site/en/about/overview.md'
example_file = 'example_file.md'  # You can replace it with your own file paths.
response = requests.get(url)
with open(example_file, 'wb') as f:
    f.write(response.content)
documents = SimpleDirectoryReader(
    input_files=[example_file]
).load_data()

print("Document ID:", documents[0].doc_id)

storage_context = StorageContext.from_defaults(vector_store=vector_store)
index = VectorStoreIndex.from_documents(
    documents, storage_context=storage_context, embed_model=embed_model
)

query_engine = index.as_query_engine(llm=llm)
res = query_engine.query("What is Milvus?")  # You can replace it with your own question.
print(res)

Example output

Milvus is a high-performance, highly scalable vector database designed to operate efficiently across various environments, from personal laptops to large-scale distributed systems. It is available as both open-source software and a cloud service. Milvus excels in managing unstructured data by converting it into numerical vectors through embeddings, which facilitates fast and scalable searches and analytics. The database supports a wide range of data types and offers robust data modeling capabilities, allowing users to organize their data effectively. Additionally, Milvus provides multiple deployment options, including a lightweight version for quick prototyping and a distributed version for handling massive data scales.

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.

LlamaIndex optimization tips

To optimize LlamaIndex for a Retrieval-Augmented Generation (RAG) setup, structure your data efficiently using hierarchical indices like tree-based or keyword-table indices for faster retrieval. Use embeddings that align with your use case to improve search relevance. Fine-tune chunk sizes to balance context length and retrieval precision. Enable caching for frequently accessed queries to enhance performance. Optimize metadata filtering to reduce unnecessary search space and improve speed. If using vector databases, ensure indexing strategies align with your query patterns. Implement async processing to handle large-scale document ingestion efficiently. Regularly monitor query performance and adjust indexing parameters as needed for optimal results.

HNSWlib optimization tips

To optimize HNSWlib for a Retrieval-Augmented Generation (RAG) setup, fine-tune the M parameter (number of connections per node) to balance accuracy and memory usage—higher values improve recall but increase indexing time. Adjust ef_construction (search depth during indexing) to enhance retrieval quality. During queries, set ef_search dynamically based on latency vs. accuracy trade-offs. Use multi-threading for faster indexing and querying. Ensure vectors are properly normalized for consistent similarity comparisons. If working with large datasets, periodically rebuild the index to maintain efficiency. Store the index on disk and load it efficiently for persistence in production environments. Monitor query performance and tweak parameters to achieve optimal speed-recall balance.

OpenAI GPT-4 optimization tips

To optimize GPT-4 in RAG, structure prompts to explicitly separate instructions from context using delimiters (e.g., ##CONTEXT##), prioritize concise retrieved passages to stay within token limits, and use system messages to guide tone and formatting. Adjust temperature (lower for factual accuracy, higher for creativity) and set max_tokens to avoid truncation. Employ chunking for long documents, cache frequent queries, and validate outputs against retrieved data to reduce hallucinations. Test iteratively with domain-specific examples to refine performance.

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?

Congratulations on completing this tutorial! You've taken significant steps toward mastering the integration of key components like a framework, vector database, LLM, and embedding model to craft a Retrieval-Augmented Generation (RAG) system. By leveraging LlamaIndex for structuring and managing your data, HNSWlib for efficient vector search, OpenAI's powerful GPT-4 for generating coherent and contextually relevant text, and Cohere's embedding model to transform your input into usable vectors, you've built a robust pipeline that enhances information retrieval and empowers advanced AI applications. Not only did you learn how these elements come together, but you've also seen how optimizing your system can improve performance, with tips from this tutorial giving you the edge you need!

As you embark on your journey to build, optimize, and innovate your own RAG applications, remember that you have the potential to create something truly impactful. With the bonus of a free RAG cost calculator at your fingertips, you can effortlessly assess the cost-effectiveness of your system while driving efficiency in your projects. So, dive in and start applying what you’ve learned! The world of AI awaits your innovative solutions, and there's no limit to what you can achieve with your newfound skills. Let your creativity run wild—the future of AI is in your hands!

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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