What is RAG and why does it matter for compliance?

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A standard Large Language Model (LLM) is trained on a snapshot of text up to a cut-off date. When you ask it about a regulation, it draws on patterns absorbed during training — which may be outdated, incorrectly summarised, or simply fabricated when the model lacks sufficient signal. The model has no way to distinguish what it actually learned from what it confabulated to fill a gap.

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