Build RAG Chatbot with Llamaindex, Milvus, OpenAI GPT-o3-mini, and Cohere embed-english-light-v3.0

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.
Milvus: An open-source vector database optimized to store, index, and search large-scale vector embeddings efficiently, perfect for use cases like RAG, semantic search, and recommender systems. If you hate to manage your own infrastructure, we recommend using Zilliz Cloud, which is a fully managed vector database service built on Milvus and offers a free tier supporting up to 1 million vectors.
OpenAI GPT-o3-mini: A lightweight, efficient language model optimized for rapid text generation and comprehension. Designed to balance performance with resource efficiency, it excels in applications requiring quick responses and lower computational costs, such as mobile apps, customer service chatbots, and real-time content moderation. Ideal for developers seeking scalable AI solutions with minimal infrastructure demands.
Cohere embed-english-light-v3.0: A lightweight, efficient embedding model designed to convert English text into high-dimensional vector representations. Excelling in speed and scalability, it balances accuracy with low computational demands, making it ideal for semantic search, text clustering, and retrieval-augmented applications in resource-constrained environments.

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-o3-mini

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

from llama_index.llms.openai import OpenAI

llm = OpenAI(
    model="o3-mini",
    # api_key="some key",  # uses OPENAI_API_KEY env var by default
)

Step 3: Install and Set Up Cohere embed-english-light-v3.0

%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-v3.0",
)

Step 4: Install and Set Up Milvus

pip install llama-index-vector-stores-milvus

from llama_index.core import VectorStoreIndex, StorageContext
from llama_index.vector_stores.milvus import MilvusVectorStore

vector_store = MilvusVectorStore(
    uri="./milvus_demo.db",
    dim=1536,  # You can replace it with your embedding model's dimension.
    overwrite=True,
)

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.

Milvus optimization tips

Milvus serves as a highly efficient vector database, critical for retrieval tasks in a RAG system. To optimize its performance, ensure that indexes are properly built to balance speed and accuracy; consider utilizing HNSW (Hierarchical Navigable Small World) for efficient nearest neighbor search where response time is crucial. Partitioning data based on usage patterns can enhance query performance and reduce load times, enabling better scalability. Regularly monitor and adjust cache settings based on query frequency to avoid latency during data retrieval. Employ batch processing for vector insertions, which can minimize database lock contention and enhance overall throughput. Additionally, fine-tune the model parameters by experimenting with the dimensionality of the vectors; higher dimensions can improve retrieval accuracy but may increase search time, necessitating a balance tailored to your specific use case and hardware infrastructure.

OpenAI GPT-3-mini optimization tips

Optimize OpenAI GPT-3-mini in RAG by chunking input data into smaller, semantically coherent segments to reduce token waste and improve retrieval relevance. Use structured prompts with explicit instructions (e.g., "Answer based on: [context]") to guide outputs. Fine-tune temperature (0.2-0.5 for precision) and max tokens to balance brevity and completeness. Cache frequent queries to reduce latency and costs. Preprocess retrieved documents to remove redundancy and align with query intent. Monitor outputs via metrics like BLEU or ROUGE and iterate based on user feedback.

Cohere embed-english-light-v3.0 optimization tips

To optimize Cohere embed-english-light-v3.0 in RAG, ensure input text is clean and concise by removing redundant whitespace, special characters, or irrelevant metadata. Use batch processing for embeddings to reduce API calls and latency. Align chunk sizes with the model’s 512-token limit, splitting longer texts into coherent segments. Cache frequent or static embeddings to save costs. Fine-tune retrieval scoring (e.g., cosine similarity) to match your data distribution, and pre-filter low-relevance documents using metadata to reduce computational overhead. Regularly validate embedding quality against domain-specific benchmarks.

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?

Wow, what a fantastic journey through the world of Retrieval-Augmented Generation (RAG) systems! After diving into this tutorial, you now have a crystal-clear understanding of how to weave together a robust framework using the powerful tools of LlamaIndex for your indexing needs, Milvus for scalable vector storage, OpenAI's GPT-o3-mini for generating rich content, and Cohere's embedding model to transform your data into actionable insights. Each component plays a crucial role: LlamaIndex helps you efficiently organize and retrieve documents, Milvus ensures your queries are lightning-fast and scalable, while GPT-o3-mini adds that magical touch of generative capabilities. The embedding model rounds it all off by enhancing your data's contextual understanding, paving the way for intelligent interactions.

And let's not forget the optimization tips shared throughout the tutorial! Learning how to refine your queries, selecting the right parameters, and utilizing the free RAG cost calculator empowers you to streamline your workflow while keeping an eye on project costs. With these tools and insights in your toolkit, you're not just equipped; you're ready to innovate and push the boundaries of what's possible with RAG systems! So, go ahead—start building, optimizing, and dreaming big. Your groundbreaking applications are just waiting to come to life, and the world is eager to see what you create. Let your creativity run wild, and remember that every great project starts with that first step!

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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