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How RAG Actually Works on Azure — Architecture Explained

In this episode I explain exactly how Retrieval Augmented Generation (RAG) works under the hood — the two phases, five steps each, and the one system prompt that stops AI hallucina

📅 12 June 20263:38✍️ Rahul Kumar

Overview

In this episode I explain exactly how Retrieval Augmented Generation (RAG) works under the hood — the two phases, five steps each, and the one system prompt that stops AI hallucinations. No demo, just clean architecture explanation.

- Why RAG matters (and the 3 problems it solves)

- Phase 1: Indexing — chunking, embedding, storage

- Phase 2: Query — vector search, prompt building, generation

- The system prompt trick that prevents hallucinations

- RAG vs fine-tuning — which to pick and when

Built on Microsoft Azure with Azure AI Foundry, Azure AI Search, and GPT-4o.

📺 Episode 1 (Build a RAG chatbot on Azure): https://www.youtube.com/watch?v=CFSgt0UXVcY

Video Timeline

  • 0:00 What is RAG and why it matters
  • 0:25 Phase 1: Indexing (chunking, embedding, storage)
  • 1:35 Phase 2: Query (vector search, system prompt)
  • 3:00 RAG vs Fine-tuning
  • 3:30 Next episode preview

Key Takeaways

  • Practical cloud architecture patterns you can apply immediately
  • Real-world implementation guidance from enterprise experience
  • Azure, AWS, and multi-cloud considerations
  • Security-first and cost-optimised design principles

Watch & Learn

Watch the full video above for a detailed walkthrough. Subscribe to Tech with RKM on YouTube for regular cloud and AI architecture content.

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About the Author

Rahul Kumar is a Senior Cloud and AI Architect at Microsoft with 13+ years of enterprise experience across Azure, AWS, and GCP.

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