⚙️ RAG 2.0: Google's Gemini Industrialises Retrieval-Augmented Generation

In this week's Data Pro Newsletter, an article titled "The RAG 2.0 Revolution Need to Knows," focuses on how the introduction of Google's Gemini File Search Tool is fundamentally changing the field of data engineering and Retrieval-Augmented Generation (RAG). The author argues that this managed service ushers in "RAG 2.0," effectively industrialising the process by abstracting away the complex infrastructure and operational labour associated with traditional, self-managed "RAG 1.0" systems, thereby shifting the build-versus-buy economic calculus. Significant strategic implications are discussed, including the move from fixed operational expenditure to variable consumption costs, the advantage of Hybrid Search in solving the "out of domain" data problem, and the strategic trade-off between vendor lock-in and operational efficiency. Ultimately, the text recommends a "Managed-First Policy" for non-differentiating applications while reserving costly DIY RAG builds for core competitive differentiators.

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