RAG stands for Retrieval-Augmented Generation. It is a technique in which a language model doesn't only draw on what it learned during training, but first looks up current or specific information and then uses it to formulate an answer. So the model "retrieves" and "generates" in a single process.
That may sound like a technical detail, but it is exactly why AI search environments such as Perplexity, ChatGPT Search and Google AI Overviews can refer to websites. Without RAG, an LLM could only answer based on its training data, which quickly goes out of date and doesn't cite sources.
The exact workings differ per system, but the general process looks roughly like this:
With RAG, the retrieval step decides which sources the model gets to see. If your page doesn't come up in that step, it can't end up in the answer either. That means the classic basics still apply: your page needs to be crawlable, indexed and recognised as relevant.
The form of your content matters too. RAG systems usually work with fragments rather than full pages. A paragraph that answers a question clearly and on its own is easier to reuse than an answer spread across a long text. A clear structure with good subheadings helps, as does structured data that makes facts such as opening hours or prices unambiguous.
An accountancy firm in Manchester publishes a clear page on the VAT rules for small businesses, with a short answer for each situation. When someone asks an AI assistant whether, as a new business, they need to register for VAT, the system can select exactly that passage in the retrieval step and cite the firm as a source. A general "Our services" page wouldn't answer that question and so wouldn't be retrieved.
RAG isn't only used by search engines, by the way. Companies also use it for internal chatbots that answer based on their own manuals, product sheets or customer files. The principle is the same: the better structured and more up to date the sources, the more reliable the answer.
The growing field of GEO is largely about understanding RAG: how do you make sure your content is found, selected and represented correctly? There is no fixed formula, and systems change constantly. What does seem consistent is that clear, reliable and easy-to-find information gives you the best starting position. Your authority as a source probably also plays a part in which pages get selected.
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