What RAG actually does for a business
RAG lets a model answer using your documents instead of its training data. That is the whole idea, and it is the reason most companies want it.
A general model knows the internet. It does not know your contracts, your support history, your internal policies or the five hundred page handbook that only two people have read. RAG closes that gap by retrieving the relevant passages first and asking the model to answer from them, with citations back to the source.
The practical effect is that answers become checkable. When a support agent sees the clause the answer came from, they can trust it or overrule it in seconds. Without citations you are asking people to believe a confident sentence, which is exactly what they will refuse to do.
