ISOM 260 — AI Agents in Business

RAG Agent: Live Trace

Watch a knowledge agent search, rank, verify, and generate — step by step

Understand Retrieve Rank Verify Generate
Step 0 of 14
Space Play / Pause Step Forward Step Back R Reset
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Docs Searched
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Chunks Retrieved
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Sources Used
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Conflicts Found
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Confidence
Understand Step 1 of 14
User query received:
User Input
Understand Step 2 of 14
Decomposing query into search terms:
refund policy annual plans CloudSync cancellation terms
I need to search company documents for refund and cancellation policies specific to annual subscriptions.
Retrieve Step 3 of 14
Searching 7 documents...
refund-policy-2024.md
pricing-tiers.md
refund-policy-2022.md
customer-faq.md
terms-of-service.md
employee-handbook.md
onboarding-guide.md
Retrieve Step 4 of 14
Retrieved 6 relevant chunks:
refund-policy-2024.md 0.92
Annual plan subscribers may request a full refund within 30 days of purchase. After the 30-day window, cancellations receive a pro-rated refund for the remaining subscription period.
pricing-tiers.md 0.71
CloudSync Annual Plan: $299/year (billed annually). Includes all Pro features, priority support, and 500GB cloud storage. Enterprise plans available for teams of 10+.
refund-policy-2022.md 0.89
All annual plan customers are entitled to a full 60-day money-back guarantee. No questions asked. Contact support to initiate the refund process within the guarantee period.
customer-faq.md 0.78
To request a refund, email support@cloudsync.com with your account ID and reason for cancellation. Refunds are processed within 5-7 business days to your original payment method.
terms-of-service.md 0.34
CloudSync reserves the right to modify, suspend, or discontinue any part of the Service at any time. We will provide at least 30 days notice for material changes.
employee-handbook.md 0.12
Full-time employees are eligible for health insurance, 401(k) matching, and annual performance bonuses. Part-time employees receive prorated benefits after 6 months.
Rank Step 5 of 14
Ranking by relevance score...
Rank Step 6 of 14
Selection complete
Verify Step 7 of 14
Cross-referencing sources...
Examining the 3 selected chunks for consistency, date conflicts, and factual alignment.
Verify Step 8 of 14
Conflict: The 2024 policy states a 30-day refund window. The 2022 policy states a 60-day refund window. These cannot both be current.
Verify Step 9 of 14
The 2022 document is outdated. The 2024 document supersedes it based on date metadata. I'll use the 2024 policy but note the discrepancy for transparency.
Verify Step 10 of 14
1 conflict resolved
Generate Step 11 of 14
Generating answer from verified sources...
Context window 0 / 200,000 tokens
Generate Step 12 of 14
Generate Step 13 of 14
Generate Step 14 of 14
Confidence 0%
Same Question, Two Approaches
What happens when an LLM answers from memory vs. with RAG-grounded knowledge?

Without RAG

"CloudSync offers a standard 60-day money-back guarantee on all plans, including annual subscriptions. Simply contact support for a full refund within 60 days of purchase."
No citations. No sources.
Hallucinated — wrong policy, no sources
vs

With RAG

"CloudSync's refund policy for annual plans provides a 30-day full refund window from the date of purchase. After 30 days, cancellations receive a pro-rated refund for the remaining subscription period." refund-policy-2024.md customer-faq.md

"Note: An older 2022 policy referenced a 60-day window, but this has been superseded by the current 2024 policy." refund-policy-2024.md §3.2
Accurate — correct policy, cited sources, conflict flagged

This is what you're about to build. Open the Colab notebook and you'll wire up a RAG pipeline — loading documents, searching with TF-IDF, ranking results, and generating grounded answers. By the end of class, your agent will retrieve real documents and generate cited answers like this one.