1
The Knowledge Problem
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Key Talking Points
- Ask the class: What's your company's refund policy? Now imagine asking Claude — it invents one.
- This is THE #1 problem in enterprise AI. Claude is smart but doesn't know YOUR business.
- RAG = search your docs first, then answer. Simple concept, profound impact.
- Every Fortune 500 company doing AI needs this. You're learning the most in-demand pattern.
Demo Cues
Ask the Class
What's your company's refund policy? Now imagine asking Claude...
Transition
So we know the problem. Now let's look under the hood — HOW does RAG actually work?
2
RAG Architecture Deep Dive
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Key Talking Points
- Three levels: No data (hallucination), stuffed context (simple but limited), RAG (scalable).
- We're using Claude's 200K context window — no vector DB needed for our scale.
- Walk through the trace demo: question → search → rank → verify → generate.
- Key insight: the search tool IS the agent's knowledge. No tool = no knowledge.
Demo Cues
Ask the Class
Why can't we just paste all documents into the prompt every time?
Transition
Enough theory. Time to build. Open your Colab notebooks.
3
Hands-On — Build a Knowledge Agent
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Key Talking Points
- Everyone open Colab. I'll walk through Phase 1 together, then you fly solo.
- Walk the room. Common issues: API key not set, wrong model name, tool results format.
- Celebrate first working queries loudly — momentum matters.
- If stuck >3 min, ask a neighbor. If neighbor stuck too, raise hand.
Ask the Class
What's the most surprising answer your agent gave?
Transition
Your agent now knows your business. Grab a coffee — next we break it.
4
Break
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Key Talking Points
- Stretch break. Remind: "Your agent now knows YOUR business. Next: what happens when the data is wrong?"
- Check: who got all 3 phases done? Partial credit is fine.
Transition
Welcome back. Your agent works. Now let's see what happens when the data is WRONG.
5
RAG Failure Modes & Trust
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Key Talking Points
- Air Canada story is REAL. Court ruled them liable. $812. This is not theoretical.
- Demo each failure mode live — outdated doc, contradicting docs, unanswerable question.
- Key message: "I don't know" is a FEATURE, not a bug. Best agents know their limits.
- Link to failure-modes-demo.html for interactive exploration.
Demo Cues
Ask the Class
Should a company be liable for what its AI chatbot says? Why?
Transition
So how do real companies handle all this? Let's look at the real world.
6
RAG in the Real World
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Key Talking Points
- Most companies buy (Glean, Notion AI). You learn to build so you can evaluate.
- Ask: "Who has used a company knowledge base at work? Was it good?" Get stories.
- Build vs buy framework: <100 docs = long context, <10K = simple RAG, >10K = vector DB.
Ask the Class
Who has used a company knowledge base at work? Was it actually good?
Transition
You now know what companies build AND buy. Let's wrap up.
7
Wrap-Up + Homework
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Key Talking Points
- Stack recap: Tools → APIs → Memory → ReAct → Knowledge. Next: Multi-Agent.
- Homework preview: Build YOUR OWN knowledge agent. Domain you actually care about.
- Tease Session 8: "One agent is useful. A TEAM of agents is powerful."
Demo Cues
Ask the Class
What domain would YOU build a knowledge agent for?