Dec. 5, 2025

RAG vs Copilot: When You Need Your Own AI — and When You Don’t

The night is thick with static inside your tenant, and the questions aren’t small anymore. Copilot can walk the clean, well-lit M365 streets — summarizing inbox noise, tightening your notes, finding what you already have permission to see. Fast, friendly, useful. But tone isn’t truth, and guesses don’t survive compliance.

This episode pulls you into the alleys where real knowledge lives: stale PDFs, forgotten SharePoint stacks, file-server ghosts, wikis no one maintained. That’s where Copilot reaches its boundary — and where Retrieval Augmented Generation starts. RAG becomes the librarian with receipts, dragging ground truth from your own systems, forcing citations, refusing to bluff. We map when Copilot is enough, when you must build a pipeline, and why teams explode cost, tickets, and trust by confusing the two. A secret step makes the whole discipline 10× easier — and we go there.

If your world runs on proprietary policy, SOPs, baselines, and high-stakes questions where wrong means risk, this is your compass. Copilot handles the errands. RAG handles the law. Pick the lane. Move.

Your tenant is humming. Your files are stacked like rusted steel. You need answers — fast. But not guesses.
This episode tears into one of the most misunderstood decisions in modern enterprise AI: Should you rely on Microsoft Copilot, or build a Retrieval-Augmented Generation (RAG) pipeline that cites from your own knowledge? Most teams get this wrong. They assume Copilot “knows everything.” They assume RAG is “too hard.” They assume accuracy magically appears on its own.
And then they pay for it — in rework, bad decisions, broken trust, and a service desk drowning under repeat questions. We’re here to stop that. What You’ll Learn in This Deep-Dive Episode 🚀 Copilot: Powerful, Fast… and Bounded We break down how Copilot actually works — an M365-native assistant that walks Outlook alleys, Teams threads, SharePoint sites, and OneDrive folders you already have rights to. Perfect for:

  • Drafting emails, briefs, and meeting notes
  • Summaries and rewrites in your voice
  • Surfacing documents inside your permissions
  • Fast context on work already in your lane

Copilot saves minutes per move — but we expose the moment it falls apart: when the truth you need lives outside the M365 glow. 🛑 Where Copilot Quietly Fails (and Why It’s Not Its Fault) Organizations destroy their own trust when they ask Copilot questions it was never designed to answer:

  • Outdated PDFs on a file share
  • Device baselines split across three contradictory versions
  • SOPs buried across wikis, Word docs, and tribal knowledge
  • ERP/CRM fields living in systems Copilot can’t see

When Copilot can’t reach the right source, it doesn’t tell you it’s blind — it gives its best guess.
Good tone. Bad facts. Big risk. 📚 RAG: Your AI Librarian With Receipts The RAG Breakdown (No Hype, Just Reality):

  • Retrieval: Clean, chunk, tag, and index your docs with metadata and vector embeddings
  • Augmentation: Find only the most relevant chunks at query time
  • Generation: Have the model answer only from those cites, with “don’t know” when blind

It’s not a model trick. It’s a discipline — an information supply chain built for accuracy. With RAG:

  • Every answer is grounded in your sources
  • Citations are mandatory
  • Contradictions surface instead of hiding
  • Policies and SOPs are always up-to-date after reindexing
  • Trust skyrockets because nothing is invented

If Copilot is speed, RAG is truth. 🏭 Case Study: The Global Manufacturer That Turned Chaos Into Clarity We walk through a real (anonymized) transformation: Before RAG:

  • 4,800+ policy files scattered everywhere
  • Conflicting versions, duplicated PDFs, outdated baselines
  • 12–15 repeat questions hitting the service desk daily
  • Copilot helping only on shallow tasks
  • Employees guessing because finding the right doc was too slow

After RAG on Azure:

  • Unified index across SharePoint + file servers
  • Every clause chunked, dated, tagged, owned
  • Hybrid semantic search for precision
  • Teams agent returning answers with citations in seconds
  • Service desk load dropped by a third
  • Contradictions surfaced and fixed in days, not months
  • Leadership finally trusted the documentation again

Not because the model was smarter — but because the library was. 💡 Credibility Boosters: Why RAG Wins Enterprise Trust You’ll hear the key lines from real teams:

  • “The biggest win wasn’t speed — it was accuracy.”
  • “Users trusted the answers because citations were mandatory.”
  • “We didn’t retrain anything. We just fixed our data.”

RAG is the only approach where:

  • Every answer is auditable
  • Every source is traceable
  • Every contradiction is fixable
  • Every update is immediate after reindexing

In enterprise, this isn’t optional — it’s survival. 🧭 How to Actually Choose Between Copilot and RAG We give you the simple, crystal-clear filter: Use Copilot when: ✔ You’re working inside M365
✔ You need a draft, summary, rewrite, or quick info
✔ Governance + simplicity outweigh precision
✔ You don’t need strict citations or cross-system truth Use RAG when: ✔ Correctness beats speed
✔ Answers must cite specific clauses
✔ Knowledge lives outside M365
✔ Policies, SOPs, or baselines shift often
✔ You depend on ERP/CRM/LOB data
✔ Repeatability matters — same question, same answer, same source Copilot is your runner.
RAG is your librarian.
Know which city you’re operating in. 🔥 Up Next: The RAG Blueprint Episode Subscribe now — the next episode breaks down the minimal viable RAG pipeline, costs, architecture, chunking strategy, evaluation techniques, and guardrails you must implement to avoid hallucinations and blowback. Make the call.
Pick the lane.
Build the truth.

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Transcript

1
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The night was thick with static.

2
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Your tenant humming files stacked like rusted steel.

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You want answers fast, but not guesses.

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Copilot is quick, friendly.

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It skims your M3 and 65 streets and hands you a summary.

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Good enough for small talk, not for policy, not for risk.

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Rag cuts deeper.

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It drags truth from your own stack, sights it, stands by it.

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So here's the map when Copilot is enough.

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When you need your own pipeline and why teams blow this call,

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then pay for it in rework, tickets and trust.

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Stay sharp.

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There's a secret step that makes this 10x easier.

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We'll get there.

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Now, we define the players, defining the players,

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what is Copilot and LLMs.

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Start with the engine, large language models.

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They speak like us because they are trained on oceans of public text.

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Patterns, tokens, next word bets, they don't know.

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They predict that prediction is powerful.

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Drafts, summaries, code sketches, meeting notes cleaned and sorted.

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Fast.

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But down here, your world is narrow, specific, messy.

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HR policies with last year's date, a procurement form

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that changed last month, a device standard buried in a PDF

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on a forgotten SharePoint stack.

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A plain LLM won't see it because in this city,

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the model only knows what you feed it now, not what you hit back then,

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not what changed yesterday.

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Enter Copilot.

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Think of it like a streetwise guide inside Microsoft 365.

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It can walk outlook alleys, teams corridors, SharePoint towers,

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one drive back rooms.

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It reads what you can read.

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It stays in bounds with your permissions.

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It drafts replies, writes meeting recaps,

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pulls related files you already have rights to.

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It's good at what's in my lane right now.

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It's safe, governed, and fast because the terrain is familiar.

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Your identity controls the gates.

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Your data doesn't leave the precinct.

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Where does Copilot shine?

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Every day flow, you're buried in email,

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you need a clean summary.

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You want a quick brief for a meeting using files from your team site.

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Do you want to rephrase a doc in your voice?

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You're staying inside M365, no custom data pipelines,

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no special retrieval logic, no extra tooling, straight utility.

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But here's where most people mess up.

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They expect Copilot to know the factory floor, SOP, the onboarding maze,

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the device compliance footnote from a PDF that never made it to the right library.

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They ask it to cross check ERP fields or explain a CRM status code

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that lives outside the M365 city limits.

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Then they blame the model when the answer leans generic.

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We know better.

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It's not a mind reader.

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It's a runner working a single district.

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So what's missing?

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Retrieval, controlled, precise.

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You need a librarian who knows where the bodies are buried.

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A way to turn your PDFs, web pages,

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weekies and databases into fast, relevant context

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at the exact moment of the question.

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That's retrieval augmented generation.

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Rags, it's not a model trick.

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It's an information supply chain.

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The reason this works is simple.

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The model's memories short, prompts are finite.

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But you can fetch just the right chunks at query time.

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Feed them in, ask the model to answer only from those sites.

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You get grounded output, you get proof.

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And when your data shifts, you re-index.

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No retraining, no long cycles, just fresher truth.

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Now let's be clear.

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Co-pilot can already surface some of your files

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if they live in M365 and you have access.

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It's handy, but it won't build you a custom index

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across SharePoint, file shares, websites, and line

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of business systems.

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It won't let you tune chunk sizes for a gnarly SOP.

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It won't force citations, run retrieval evaluations,

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or give you a custom tool to hit an API

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and pull a live value mid-answer.

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That's outside its beat.

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Think constraints.

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Co-pilot is bounded by your tenant's native graph

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in its own product surface.

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That's good for speed, great for governance.

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But if you need cross-system truth, strict grounding,

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or repeatable answers tied to version sources,

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you'll feel the walls closing in.

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This clicked for me when a team asked Co-pilot

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to untangle a device hardening policy.

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The dock was split across three PDFs.

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One was stale.

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One lived on a file server.

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One had the only correct baseline.

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Co-pilot did its best with what it could see.

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The answer sounded right.

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It wasn't.

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Service desk tickets spiked.

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Minutes wasted.

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Trust bled.

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With rag, you don't pray.

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You prepare, you ingest, you chunk, you tag.

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You index with vectors, so meaning survives paraphrase.

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You fetch the closest chunks.

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You show citations.

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You add a hard rule.

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If nothing fits, say you don't know.

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Illucinations drop.

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Confidence climbs.

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If you remember nothing else, Co-pilot is your inbox partner.

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Rag is your knowledge pipeline.

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Use the guide when you're inside the district.

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Build the pipeline when the stakes demand proof.

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Defining the players.

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What is Rag?

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Retrieval augmented generation.

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Rag isn't magic.

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It's plumbing, cold pipes, hot truth.

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Three moving parts.

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Retrieval, augmentation, generation.

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Retrieval first.

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You build a private library.

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Not glossy, brutal.

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Your PDFs.

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Wikis.

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Pages.

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Tables.

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Tickets.

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Change logs.

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SOP binders that smell like dust and denial.

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You don't throw them at a model.

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You process them.

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You slice them into small, useful pieces.

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Chunks.

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Then you tag them with metadata so a machine can smell

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context like a bloodhound.

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You vectorize the chunks or meaning holds when the words don't match.

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That's the search fuel.

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Augmented next.

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A question walks in.

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Plane clothes.

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You convert the question into a vector.

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You hunt the nearest chunks in your index.

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You pull back the top few that matter.

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You package them as context.

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Not all your data.

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Just the right charts.

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Tight, relevant, dated, sourced.

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You add instructions.

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Answer only from these sites.

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Quote the source.

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If it's not here say you don't know.

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That's the leash generation last.

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Now the model speaks.

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But it's grounded.

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It's standing on your sources.

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It doesn't riff from memory.

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It reasons with the pages you fed it seconds ago.

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The answer lands with receipts.

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Citations.

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No bluffing.

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The thing most people miss.

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Rag isn't about shoving PDFs into a hungry mouth.

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It's a supply chain.

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Data in.

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Chunks clean.

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Index is tuned.

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Queries tight.

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Evaluation constant.

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Break any link.

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And the outputs rot.

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Why this beats fine tuning for business?

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Because policies move.

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S-O-P's shift.

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Fields change.

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You don't want to retrain a model every time procurement updates align.

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With rag you just fix the library.

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Raine decks.

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You keep the same engine.

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You change the fuel.

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Now how does this flow in Azure Streets?

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Azure AI Foundry gives you the scaffolding.

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You ingest from SharePoint stacks Web crawls file shares maybe databases if you map exports.

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You chunk with strategies that match the form.

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Heading's matter for S-O-P's.

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Tables need careful passing.

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You add metadata version owner, date system, then you vectorize.

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Embeddings turn text into numbers that remember intent.

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You store those vectors in Azure AI search or a vector store that plays nice.

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That's your index.

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Fast.

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Searchable.

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Ready when the question hits.

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When the question hits the retriever goes to work.

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It finds the closest matches by meaning not just keywords.

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You can do hybrid search too.

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Semantics plus text because in this city precision is survival.

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You set strictness.

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Loose finds more.

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Risks noise.

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Tight finds less.

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Boosts trust.

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Filing to your risk then you augment the prompt.

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You inject the retrieve chunks clean and labeled.

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You set rules, site sources, stay within content, no inventing.

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You pass that to the model you deployed doesn't need to be exotic just consistent.

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Now guardrails.

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You add don't know behavior.

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You cap on the length.

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You require citations to render with the output.

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You log which chunks were used.

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You track latency, hit rates and nulls because a pipeline you can't measure is a pipeline

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you can't trust.

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Common traps down here.

218
00:09:04,480 --> 00:09:06,560
Chunks too big.

219
00:09:06,560 --> 00:09:09,400
Model gets lost in the sprawl.

220
00:09:09,400 --> 00:09:13,520
Chunks too small, context shatters, no metadata.

221
00:09:13,520 --> 00:09:20,200
You can't filter stale from fresh, wrong embeddings for your language or domain.

222
00:09:20,200 --> 00:09:22,560
Retrieval returns pretty but wrong passages.

223
00:09:22,560 --> 00:09:24,160
No evaluation loop.

224
00:09:24,160 --> 00:09:26,800
Nobody checks if the top five actually answer the question.

225
00:09:26,800 --> 00:09:29,280
The game changer nobody talks about.

226
00:09:29,280 --> 00:09:30,280
Feedback.

227
00:09:30,280 --> 00:09:32,120
You let users flag bad answers.

228
00:09:32,120 --> 00:09:33,920
You fix the chunk or the source.

229
00:09:33,920 --> 00:09:35,520
You re-index.

230
00:09:35,520 --> 00:09:36,840
Quality rises.

231
00:09:36,840 --> 00:09:38,080
Trust follows.

232
00:09:38,080 --> 00:09:41,240
If you remember nothing else, remember this.

233
00:09:41,240 --> 00:09:42,480
Ragn makes the model local.

234
00:09:42,480 --> 00:09:43,800
It speaks in your dialect.

235
00:09:43,800 --> 00:09:45,200
It cites your law.

236
00:09:45,200 --> 00:09:47,400
It stops pretending.

237
00:09:47,400 --> 00:09:52,520
Because in this city answers without sources are just noise in the rain.

238
00:09:52,520 --> 00:09:55,640
The copilot advantage.

239
00:09:55,640 --> 00:09:57,640
General knowledge and speed.

240
00:09:57,640 --> 00:09:59,200
Copilot moves fast.

241
00:09:59,200 --> 00:10:00,880
That's the point.

242
00:10:00,880 --> 00:10:02,760
You're buried in noise.

243
00:10:02,760 --> 00:10:05,000
Male flooding your outlook alleys.

244
00:10:05,000 --> 00:10:07,360
Teams threads stacked like crates.

245
00:10:07,360 --> 00:10:08,360
Files you can see.

246
00:10:08,360 --> 00:10:10,120
Files you're allowed to see.

247
00:10:10,120 --> 00:10:11,560
Copilot walks that beat with you.

248
00:10:11,560 --> 00:10:13,280
It reads the room.

249
00:10:13,280 --> 00:10:15,920
Drafts a reply that sounds like you.

250
00:10:15,920 --> 00:10:19,120
Pulls three relevant docs from your team site.

251
00:10:19,120 --> 00:10:21,440
Builds a meeting brief in seconds.

252
00:10:21,440 --> 00:10:24,160
Rises a chat war into clean bullet lines.

253
00:10:24,160 --> 00:10:25,480
You don't hunt.

254
00:10:25,480 --> 00:10:26,480
You don't stitch.

255
00:10:26,480 --> 00:10:28,080
You just ship.

256
00:10:28,080 --> 00:10:30,600
Because in this city time kills.

257
00:10:30,600 --> 00:10:32,560
Copilot saves minutes per move.

258
00:10:32,560 --> 00:10:34,480
Add that up across a week.

259
00:10:34,480 --> 00:10:35,680
Across a team.

260
00:10:35,680 --> 00:10:37,160
Across a quarter you feel the lift.

261
00:10:37,160 --> 00:10:39,120
Now, the reason it's smooth.

262
00:10:39,120 --> 00:10:40,960
Identity adwares your badge.

263
00:10:40,960 --> 00:10:42,280
It respects your scope.

264
00:10:42,280 --> 00:10:44,120
It doesn't break out of the precinct.

265
00:10:44,120 --> 00:10:46,040
No awkward permissions chase.

266
00:10:46,040 --> 00:10:47,680
No custom pipes to maintain.

267
00:10:47,680 --> 00:10:49,200
No embeddings to generate.

268
00:10:49,200 --> 00:10:52,120
Rides the Microsoft graph like a subway map.

269
00:10:52,120 --> 00:10:53,200
Predictable.

270
00:10:53,200 --> 00:10:54,160
Govind.

271
00:10:54,160 --> 00:10:55,800
Quietly efficient.

272
00:10:55,800 --> 00:10:58,200
Drafting is where it shines.

273
00:10:58,200 --> 00:11:00,200
Cold email to warm intro.

274
00:11:00,200 --> 00:11:01,880
Rough notes to clean minutes.

275
00:11:01,880 --> 00:11:04,120
A messy deck turned tight.

276
00:11:04,120 --> 00:11:05,680
Rewrite in your tone.

277
00:11:05,680 --> 00:11:06,600
Fix spelling.

278
00:11:06,600 --> 00:11:07,720
Strip fluff.

279
00:11:07,720 --> 00:11:09,480
That's breakfast work for Copilot.

280
00:11:09,480 --> 00:11:11,280
It's also a decent scout.

281
00:11:11,280 --> 00:11:13,560
Show me related docs for this meeting.

282
00:11:13,560 --> 00:11:16,040
It maps your one drive and SharePoint lanes.

283
00:11:16,040 --> 00:11:18,120
It surfaces what's already in reach.

284
00:11:18,120 --> 00:11:20,400
You pick, you move.

285
00:11:20,400 --> 00:11:22,680
And here's the truth, the tourists miss.

286
00:11:22,680 --> 00:11:26,520
Sometimes you just need good enough, a passable draft,

287
00:11:26,520 --> 00:11:28,400
a summary that gets you oriented,

288
00:11:28,400 --> 00:11:31,400
a quick check of what's changed in a folder you own.

289
00:11:31,400 --> 00:11:32,720
These aren't court cases.

290
00:11:32,720 --> 00:11:34,320
They're errands.

291
00:11:34,320 --> 00:11:36,880
Copilot eats errands.

292
00:11:36,880 --> 00:11:39,520
Now, boundaries.

293
00:11:39,520 --> 00:11:43,560
Because down here in the undernet, speed can blind you.

294
00:11:43,560 --> 00:11:45,640
Copilot won't require your knowledge.

295
00:11:45,640 --> 00:11:48,600
It won't cross the fences into ERP vaults,

296
00:11:48,600 --> 00:11:53,440
or that legacy file, share the last admin sealed with tape.

297
00:11:53,440 --> 00:11:56,800
It won't enforce answer only with citations on your command.

298
00:11:56,800 --> 00:12:00,800
It won't let you tune chunk sizes or run retrieval evaluations.

299
00:12:00,800 --> 00:12:04,480
It can pull what's visible in your M365 lanes.

300
00:12:04,480 --> 00:12:06,840
Useful, but not surgical.

301
00:12:06,840 --> 00:12:08,520
So when do you stay with it?

302
00:12:08,520 --> 00:12:13,800
When the task lives in outlook, teams, SharePoint, one drive.

303
00:12:13,800 --> 00:12:18,560
When the answer is a draft, a summary, a rewrite, a quick list.

304
00:12:18,560 --> 00:12:21,000
When governance and simplicity matter,

305
00:12:21,000 --> 00:12:23,400
more than custom reach.

306
00:12:23,400 --> 00:12:27,240
When you don't need strict grounding or cross-system joins,

307
00:12:27,240 --> 00:12:30,240
I watch the PM use it to prep a vendor call.

308
00:12:30,240 --> 00:12:33,000
30 messages, four files.

309
00:12:33,000 --> 00:12:37,360
She asked for a one-page brief with open issues and decisions.

310
00:12:37,360 --> 00:12:39,520
Copilot's batted out in under a minute.

311
00:12:39,520 --> 00:12:41,440
She tweaked three lines.

312
00:12:41,440 --> 00:12:42,240
Done.

313
00:12:42,240 --> 00:12:44,240
That's the lane.

314
00:12:44,240 --> 00:12:47,880
The mistake is trying to make it a judge, a compliance oracle

315
00:12:47,880 --> 00:12:49,560
across-system agent.

316
00:12:49,560 --> 00:12:53,840
You ask it about a policy that changed last month in a PDF it can't see.

317
00:12:53,840 --> 00:12:56,480
It answers smooth, generic, and wrong.

318
00:12:56,480 --> 00:12:59,600
You won't spot the fracture until the ticket queues wells.

319
00:12:59,600 --> 00:13:00,680
We've seen that movie.

320
00:13:00,680 --> 00:13:02,280
Use the runner for what it is.

321
00:13:02,280 --> 00:13:05,520
Fast, local, polite with your time.

322
00:13:05,520 --> 00:13:08,080
Once you nail that, everything else clicks.

323
00:13:08,080 --> 00:13:09,480
You don't overreach.

324
00:13:09,480 --> 00:13:11,240
You don't over trust.

325
00:13:11,240 --> 00:13:14,160
You keep the errands light in the stakes low.

326
00:13:14,160 --> 00:13:18,360
And when the question demands proof, you switch tools.

327
00:13:18,360 --> 00:13:20,800
Because in this city speed matters.

328
00:13:20,800 --> 00:13:22,440
But truth wins.

329
00:13:22,440 --> 00:13:27,440
The rag necessity when proprietary data is king.

330
00:13:27,440 --> 00:13:29,640
Some questions wear badges.

331
00:13:29,640 --> 00:13:33,440
Prepriotary high stakes, no guesses allowed.

332
00:13:33,440 --> 00:13:36,280
That's when the librarian steps in.

333
00:13:36,280 --> 00:13:37,400
Rag.

334
00:13:37,400 --> 00:13:40,640
You've got policies outside the M365 Glow.

335
00:13:40,640 --> 00:13:44,280
Device baselines buried in stale PDFs.

336
00:13:44,280 --> 00:13:48,360
Onboarding rules have in SharePoint, half on a file server.

337
00:13:48,360 --> 00:13:51,160
S-O-P's that live as Word, Wiki, and rumor.

338
00:13:51,160 --> 00:13:53,440
Copilot can't patrol those alleys.

339
00:13:53,440 --> 00:13:55,080
Rag can.

340
00:13:55,080 --> 00:13:56,960
You build the pipeline.

341
00:13:56,960 --> 00:13:58,600
Injust the mess.

342
00:13:58,600 --> 00:14:01,560
Chunk the docs to match how people ask.

343
00:14:01,560 --> 00:14:03,040
Headings with steps.

344
00:14:03,040 --> 00:14:05,360
Tables preserved, not mangled.

345
00:14:05,360 --> 00:14:08,120
Metadata stamped owner version date system sensitivity.

346
00:14:08,120 --> 00:14:12,960
Then vectors embeddings turn language into coordinates, meaning

347
00:14:12,960 --> 00:14:15,560
survives paraphrase.

348
00:14:15,560 --> 00:14:20,720
As your AI search holds the map, fast nearest neighbor hybrid

349
00:14:20,720 --> 00:14:23,560
with semantics when keywords help.

350
00:14:23,560 --> 00:14:26,840
Now the question hits, which device hardening baseline

351
00:14:26,840 --> 00:14:30,560
applies to contractors on Mac OS Q3 revision?

352
00:14:30,560 --> 00:14:34,120
The retriever hunts nearest chunks by meaning filters

353
00:14:34,120 --> 00:14:39,480
by version equals Q3, owner equals security, region equals global,

354
00:14:39,480 --> 00:14:41,560
strictness tuned to avoid noise.

355
00:14:41,560 --> 00:14:43,560
Three passages come home.

356
00:14:43,560 --> 00:14:44,840
You package them.

357
00:14:44,840 --> 00:14:47,760
You say answer only from these sites.

358
00:14:47,760 --> 00:14:52,480
If missing say you don't know, receipts required.

359
00:14:52,480 --> 00:14:54,480
The model speaks grounded.

360
00:14:54,480 --> 00:14:55,960
It quotes the clause.

361
00:14:55,960 --> 00:14:57,040
It links the source.

362
00:14:57,040 --> 00:14:58,680
It names the revision.

363
00:14:58,680 --> 00:15:01,000
No riff, just law.

364
00:15:01,000 --> 00:15:04,360
Policy and compliance Q&A is built for this.

365
00:15:04,360 --> 00:15:06,480
Employees stop guessing.

366
00:15:06,480 --> 00:15:09,960
They stop pinging the desk for the same 12 questions.

367
00:15:09,960 --> 00:15:12,160
Citations build trust.

368
00:15:12,160 --> 00:15:14,560
If a dog is wrong, you fix the source.

369
00:15:14,560 --> 00:15:17,280
Reindex, the answer changes tomorrow.

370
00:15:17,280 --> 00:15:18,440
No retraining loop.

371
00:15:18,440 --> 00:15:19,680
That's power.

372
00:15:19,680 --> 00:15:24,840
SOPs next, manufacturing, IT operations, HR workflows.

373
00:15:24,840 --> 00:15:26,240
These aren't poems.

374
00:15:26,240 --> 00:15:28,040
Their sequences.

375
00:15:28,040 --> 00:15:30,720
Rag turns them into step-by-step guidance.

376
00:15:30,720 --> 00:15:32,640
Chunk-by-heading and step number.

377
00:15:32,640 --> 00:15:34,280
Preserve warnings.

378
00:15:34,280 --> 00:15:36,720
Include preconditions.

379
00:15:36,720 --> 00:15:41,680
At query time, retrieve the exact step and its guard rails.

380
00:15:41,680 --> 00:15:44,560
Ask the model to render a checklist, not a story.

381
00:15:44,560 --> 00:15:45,920
You get action not vibes.

382
00:15:45,920 --> 00:15:49,960
Then CRM and ERP context, Dynamics SAP Sales Force.

383
00:15:49,960 --> 00:15:52,560
Copilot can't reach the transaction guts.

384
00:15:52,560 --> 00:15:55,360
Rag can unify the narrative.

385
00:15:55,360 --> 00:15:58,200
Embed release notes, field dictionaries, integration

386
00:15:58,200 --> 00:16:02,520
wikis, add tools for live lookups, read only APIs,

387
00:16:02,520 --> 00:16:05,160
status checks, inventory pulls.

388
00:16:05,160 --> 00:16:07,960
The model retrieves the spec, calls the tool,

389
00:16:07,960 --> 00:16:10,120
and explains the result with sites.

390
00:16:10,120 --> 00:16:12,000
Now the agent doesn't invent.

391
00:16:12,000 --> 00:16:13,720
It confirms.

392
00:16:13,720 --> 00:16:16,320
This is where proprietary data rules.

393
00:16:16,320 --> 00:16:17,600
You need control.

394
00:16:17,600 --> 00:16:21,600
Control of chunk sizes and overlap, so meaning holds.

395
00:16:21,600 --> 00:16:24,800
Control of retrieval filters to lock scope.

396
00:16:24,800 --> 00:16:27,720
Control of grounding to force citations.

397
00:16:27,720 --> 00:16:32,960
Control of tools to fetch live truth and governance.

398
00:16:32,960 --> 00:16:35,080
Foundry gives you safe lanes.

399
00:16:35,080 --> 00:16:36,680
Data boundaries.

400
00:16:36,680 --> 00:16:38,840
Roll-based access.

401
00:16:38,840 --> 00:16:40,680
Versioned indexes.

402
00:16:40,680 --> 00:16:42,280
Monitored runs.

403
00:16:42,280 --> 00:16:47,520
Responsible AI hooks so you can trace why an answer said what it said.

404
00:16:47,520 --> 00:16:51,160
Leaders sleep better when the chain of custody is clear.

405
00:16:51,160 --> 00:16:54,920
Cost and complexity know the shape.

406
00:16:54,920 --> 00:17:00,160
As your AI search carries the index, tier by traffic,

407
00:17:00,160 --> 00:17:02,720
hybrid search helps accuracy.

408
00:17:02,720 --> 00:17:05,400
Embedding's cost per thousand tokens.

409
00:17:05,400 --> 00:17:07,320
Batch at ingestion.

410
00:17:07,320 --> 00:17:10,240
Re-embed only change chunks.

411
00:17:10,240 --> 00:17:14,280
Model hosting depends on traffic and context size.

412
00:17:14,280 --> 00:17:16,080
Keep prompts tight.

413
00:17:16,080 --> 00:17:18,360
Site only what's needed.

414
00:17:18,360 --> 00:17:19,840
Storage is cheap.

415
00:17:19,840 --> 00:17:21,760
Bad indexing isn't.

416
00:17:21,760 --> 00:17:25,160
Plan your fields, plan your filters.

417
00:17:25,160 --> 00:17:27,440
When is rag not optional?

418
00:17:27,440 --> 00:17:29,840
When correctness beats speed?

419
00:17:29,840 --> 00:17:33,000
When answers must side chapter and verse.

420
00:17:33,000 --> 00:17:36,800
When knowledge lives beyond M3 in 65.

421
00:17:36,800 --> 00:17:40,880
When workflows require tools to act, not just speak.

422
00:17:40,880 --> 00:17:46,040
When you need repeatability, same question, same answer, same source.

423
00:17:46,040 --> 00:17:49,680
I walked a tenant that was bleeding data, policy scattered,

424
00:17:49,680 --> 00:17:53,320
doops everywhere, teams asked co-pilot for clarity,

425
00:17:53,320 --> 00:17:57,440
it smiled and guessed, good tone, bad facts.

426
00:17:57,440 --> 00:18:00,200
Tickets stacked like bodies in the alley.

427
00:18:00,200 --> 00:18:04,480
We built the pipeline index across SharePoint and file servers,

428
00:18:04,480 --> 00:18:08,360
trash the doops, tag the truth, force citations,

429
00:18:08,360 --> 00:18:10,840
set don't know as a badge of honor.

430
00:18:10,840 --> 00:18:13,920
Service desk load dropped, trust climbed.

431
00:18:13,920 --> 00:18:18,080
Not because the model got smarter, because the library did.

432
00:18:18,080 --> 00:18:19,920
And this one matters.

433
00:18:19,920 --> 00:18:22,960
Rag is not a feature you toggle on Tuesdays.

434
00:18:22,960 --> 00:18:27,320
It's a discipline, sources owned, pipelines monitored,

435
00:18:27,320 --> 00:18:30,840
evaluations weekly, users in the loop,

436
00:18:30,840 --> 00:18:34,520
you measure retrieval hit rate, you inspect top-k quality,

437
00:18:34,520 --> 00:18:36,720
you track don't know and fix the gap.

438
00:18:36,720 --> 00:18:37,920
Quality is a habit.

439
00:18:37,920 --> 00:18:41,480
So when proprietary data runs the show, you pick the librarian,

440
00:18:41,480 --> 00:18:44,520
you build the pipes, you demand receipts.

441
00:18:44,520 --> 00:18:47,800
Because in this city, your knowledge is the currency.

442
00:18:47,800 --> 00:18:53,120
Guard it, index it, retrieve it clean, then let the model speak,

443
00:18:53,120 --> 00:18:57,880
and stand by it, case study, global manufacturing company,

444
00:18:57,880 --> 00:19:01,000
anonymized, the tenant was humming.

445
00:19:01,000 --> 00:19:04,920
A global manufacturer, plans on three continents,

446
00:19:04,920 --> 00:19:09,320
policies stacked like sheet metal, they wanted truth on demand.

447
00:19:09,320 --> 00:19:12,080
Not vibes, not guesses.

448
00:19:12,080 --> 00:19:14,840
The service desk was drowning in repeat questions,

449
00:19:14,840 --> 00:19:17,760
compliance was a rumor, documents fought each other

450
00:19:17,760 --> 00:19:21,520
in the dark, they tried going faster with generic tools,

451
00:19:21,520 --> 00:19:25,320
speed without ground, it backfired.

452
00:19:25,320 --> 00:19:30,720
So we built a librarian, private, quiet, Azure streets,

453
00:19:30,720 --> 00:19:35,720
rag as the spine, indexes with teeth, citations mandatory,

454
00:19:35,720 --> 00:19:41,040
a team's doorway, ask, get the clause, see the source.

455
00:19:41,040 --> 00:19:44,240
Confidence returned, tickets fell,

456
00:19:44,240 --> 00:19:47,640
leadership finally saw the shape of their own rules,

457
00:19:47,640 --> 00:19:51,920
and believed them before, without rag, the pain points,

458
00:19:51,920 --> 00:19:53,760
it started ugly.

459
00:19:53,760 --> 00:19:57,240
4,800 policy files scattered like rust,

460
00:19:57,240 --> 00:20:02,000
sharepoint towers, old file servers, email attachments,

461
00:20:02,000 --> 00:20:07,000
masquerading as truth, unlabeled, duplicated, stale.

462
00:20:07,000 --> 00:20:11,040
Employees walked in with the same 12 questions,

463
00:20:11,040 --> 00:20:16,040
security, devices, onboarding, travel allowances,

464
00:20:16,040 --> 00:20:21,040
12 to 15 hits a day on the desk every day.

465
00:20:21,040 --> 00:20:26,040
Each one costing five to seven minutes of hunt and pack search,

466
00:20:26,040 --> 00:20:31,040
keyword roulette, open a PDF, skim, hope the date isn't lying,

467
00:20:31,040 --> 00:20:35,040
open the twin, different wording, which one wins?

468
00:20:35,040 --> 00:20:36,040
Nobody knew.

469
00:20:36,040 --> 00:20:38,040
Copilot helped in the shallow lanes.

470
00:20:38,040 --> 00:20:42,040
It could find what the employee already had rights to in M365,

471
00:20:42,040 --> 00:20:45,040
it summarized, it drafted, it saved seconds,

472
00:20:45,040 --> 00:20:49,040
but down here the signal lived outside the glow,

473
00:20:49,040 --> 00:20:52,040
the correct baseline sat in a PDF on a file share,

474
00:20:52,040 --> 00:20:55,040
the update lived in a wiki the team forgot to publish,

475
00:20:55,040 --> 00:20:59,040
a meeting note contradicted both, people asked,

476
00:20:59,040 --> 00:21:03,040
the system guessed, nice tone, bad facts,

477
00:21:03,040 --> 00:21:08,040
the fallout, errors in the field, wrong device hardening steps,

478
00:21:08,040 --> 00:21:13,040
onboarding detours, policy exceptions issued on the wrong revision,

479
00:21:13,040 --> 00:21:16,040
the service desk became referee and archaeologist,

480
00:21:16,040 --> 00:21:20,040
trust bled out in small cuts, the cost wasn't just minutes,

481
00:21:20,040 --> 00:21:23,040
it was rework repeat tickets and risk,

482
00:21:23,040 --> 00:21:26,040
and every fresh hire learned a bad truth,

483
00:21:26,040 --> 00:21:29,040
finding policy was slower than ignoring it,

484
00:21:29,040 --> 00:21:32,040
that's how tenants bleed quietly in the paperwork alleys,

485
00:21:32,040 --> 00:21:37,040
no scandal, just drag, after, with Azure Rags solution,

486
00:21:37,040 --> 00:21:40,040
the transformation, we turned on a light,

487
00:21:40,040 --> 00:21:44,040
all policy and SOPs flowed into Azure AI search,

488
00:21:44,040 --> 00:21:49,040
no magic, just discipline, crawl, share point,

489
00:21:49,040 --> 00:21:52,040
sweep the file servers, stage the sources,

490
00:21:52,040 --> 00:21:56,040
chunk each document by heading in clause, preserve tables,

491
00:21:56,040 --> 00:22:01,040
tag every shard with owner, version, effective date,

492
00:22:01,040 --> 00:22:06,040
system, sensitivity, then embeddings,

493
00:22:06,040 --> 00:22:10,040
vectors that remember meaning when words change,

494
00:22:10,040 --> 00:22:14,040
hybrid search, wired for speed and precision,

495
00:22:14,040 --> 00:22:18,040
the librarian woke up, a team's agent became the doorway,

496
00:22:18,040 --> 00:22:21,040
employees asked the same questions,

497
00:22:21,040 --> 00:22:25,040
the retriever hunted by meaning, then filtered by version and owner,

498
00:22:25,040 --> 00:22:28,040
top passages returned with receipts,

499
00:22:28,040 --> 00:22:31,040
we wrapped the prompt with hard rules,

500
00:22:31,040 --> 00:22:33,040
answer only from these sites,

501
00:22:33,040 --> 00:22:37,040
quote the source, if missing, say you don't know,

502
00:22:37,040 --> 00:22:40,040
the model spoke like a clerk with a case file,

503
00:22:40,040 --> 00:22:43,040
concise, grounded two seconds, not seven minutes,

504
00:22:43,040 --> 00:22:45,040
load on the desk dropped by a third,

505
00:22:45,040 --> 00:22:47,040
not because answers were flashy,

506
00:22:47,040 --> 00:22:49,040
because they were consistent,

507
00:22:49,040 --> 00:22:51,040
contradiction surfaced as alerts,

508
00:22:51,040 --> 00:22:54,040
two PDFs claiming different bass lines,

509
00:22:54,040 --> 00:22:58,040
flagged, owners notified, fix the library,

510
00:22:58,040 --> 00:23:02,040
rain decks, tomorrow's answers aligned,

511
00:23:02,040 --> 00:23:06,040
no retraining loop, no waiting on model updates,

512
00:23:06,040 --> 00:23:09,040
just fresher truth, people trusted the machine again,

513
00:23:09,040 --> 00:23:12,040
not because it was smart, because it was verifiable,

514
00:23:12,040 --> 00:23:14,040
every answer carried a source,

515
00:23:14,040 --> 00:23:17,040
the agent didn't bluff, it opted out when blind,

516
00:23:17,040 --> 00:23:20,040
that small honesty turned users into partners,

517
00:23:20,040 --> 00:23:23,040
they reported gaps, we patched sources,

518
00:23:23,040 --> 00:23:27,040
the librarian got sharper, the city got quieter,

519
00:23:27,040 --> 00:23:31,040
credibility boosters, why rag wins on trust and accuracy,

520
00:23:31,040 --> 00:23:33,040
here's the thing most leaders miss,

521
00:23:33,040 --> 00:23:36,040
speed without proof is theatre,

522
00:23:36,040 --> 00:23:39,040
in policy work, tone isn't truth,

523
00:23:39,040 --> 00:23:44,040
rag forces receipts, citations aren't a nice to have,

524
00:23:44,040 --> 00:23:46,040
they're the contract,

525
00:23:46,040 --> 00:23:49,040
when the answer links to clause 4.3,

526
00:23:49,040 --> 00:23:52,040
revision Q3 owned by security,

527
00:23:52,040 --> 00:23:56,040
the debate ends, people stop arguing with each other,

528
00:23:56,040 --> 00:24:00,040
they argue with the source, and that's fixable,

529
00:24:00,040 --> 00:24:03,040
the biggest win wasn't speed, it was accuracy,

530
00:24:03,040 --> 00:24:06,040
you'll hear that line from the floor,

531
00:24:06,040 --> 00:24:08,040
because once the librarian stands up,

532
00:24:08,040 --> 00:24:11,040
employees stop second guessing the clerk at the window,

533
00:24:11,040 --> 00:24:13,040
they click the source, they see the date,

534
00:24:13,040 --> 00:24:16,040
they move with confidence, that's how you erase

535
00:24:16,040 --> 00:24:18,040
the quiet drag that kills quarters,

536
00:24:18,040 --> 00:24:22,040
users trusted the answers more because citations were mandatory,

537
00:24:22,040 --> 00:24:24,040
trust isn't about personality,

538
00:24:24,040 --> 00:24:26,040
it's about auditability,

539
00:24:26,040 --> 00:24:30,040
mandatory citations make every response traceable,

540
00:24:30,040 --> 00:24:32,040
it also makes QA measurable,

541
00:24:32,040 --> 00:24:36,040
you can test retrieval, did the top passages actually answer the question?

542
00:24:36,040 --> 00:24:39,040
If not, fix chunks or tags,

543
00:24:39,040 --> 00:24:43,040
evaluate again, quality climbs,

544
00:24:43,040 --> 00:24:47,040
the IT department didn't need to retrain a single model,

545
00:24:47,040 --> 00:24:50,040
just structured their data,

546
00:24:50,040 --> 00:24:54,040
that line matters to budgets, fine tuning sounds heroic,

547
00:24:54,040 --> 00:24:57,040
it's also slow and brittle for policy work,

548
00:24:57,040 --> 00:25:00,040
policies evolve, SOPs shift,

549
00:25:00,040 --> 00:25:02,040
with RAAG the engine stays put,

550
00:25:02,040 --> 00:25:04,040
the fuel changes,

551
00:25:04,040 --> 00:25:06,040
rain decks changed chunks,

552
00:25:06,040 --> 00:25:08,040
keep embedding current,

553
00:25:08,040 --> 00:25:10,040
no six week model cycles,

554
00:25:10,040 --> 00:25:13,040
no vendor lock to a training pipeline,

555
00:25:13,040 --> 00:25:15,040
you can't control,

556
00:25:15,040 --> 00:25:17,040
and governance rocks steady.

557
00:25:17,040 --> 00:25:21,040
Azure AI Foundry gives you lanes.

558
00:25:21,040 --> 00:25:23,040
Identity through Entra,

559
00:25:23,040 --> 00:25:25,040
role-based access,

560
00:25:25,040 --> 00:25:27,040
data stays in the tenants shadow,

561
00:25:27,040 --> 00:25:29,040
versioned indexes,

562
00:25:29,040 --> 00:25:31,040
monitoring on latency,

563
00:25:31,040 --> 00:25:33,040
hit rate, nulls, citations,

564
00:25:33,040 --> 00:25:37,040
you can show a chain of custody from question to source,

565
00:25:37,040 --> 00:25:42,040
responsible AI hooks carry the paperwork you need when someone asks,

566
00:25:42,040 --> 00:25:44,040
why did it say that?

567
00:25:44,040 --> 00:25:48,040
In short, RAAG doesn't pretend to know it proves what it knows,

568
00:25:48,040 --> 00:25:50,040
that's why it wins.

569
00:25:50,040 --> 00:25:52,040
Choosing your AI strategy,

570
00:25:52,040 --> 00:25:54,040
here's the map in one line,

571
00:25:54,040 --> 00:25:58,040
Copilot is the runner for your M365 streets,

572
00:25:58,040 --> 00:26:01,040
RAAG is the librarian for your law,

573
00:26:01,040 --> 00:26:03,040
use the runner for drafts, summaries,

574
00:26:03,040 --> 00:26:06,040
and quick pulls inside the district.

575
00:26:06,040 --> 00:26:09,040
Bring the librarian when correctness, citations,

576
00:26:09,040 --> 00:26:11,040
and cross-system truth matter.

577
00:26:11,040 --> 00:26:14,040
If you're ready to build that pipeline, subscribe,

578
00:26:14,040 --> 00:26:18,040
then watch the next episode where we blueprint a minimal RAAG flow,

579
00:26:18,040 --> 00:26:20,040
costs and guardrails.

580
00:26:20,040 --> 00:26:22,040
Make the call, pick the lane, move.