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Practical GraphRAG: Making LLMs smarter with Knowledge Graphs — Michael, Jesus, and Stephen, Neo4j
AI Engineer·2025-07-22 17:59

Graph RAG Overview - Graph RAG aims to enhance LLMs by incorporating knowledge graphs, addressing limitations like lack of domain knowledge, unverifiable answers, hallucinations, and biases [1][3][4][5][9][10] - Graph RAG leverages knowledge graphs (collections of nodes, relationships, and properties) to provide more relevant, contextual, and explainable results compared to basic RAG systems using vector databases [8][9][10][12][13][14] - Microsoft research indicates Graph RAG can achieve better results with lower token costs, supported by studies showing improvements in capabilities and analyst trends [15][16] Knowledge Graph Construction - Knowledge graph construction involves structuring unstructured information, extracting entities and relationships, and enriching the graph with algorithms [19][20][21][22] - Lexical graphs represent documents and elements (chunks, sections, paragraphs) with relationships based on document structure, temporal sequence, and similarity [25][26] - Entity extraction utilizes LLMs with graph schemas to identify entities and relationships from text, potentially integrating with existing knowledge graphs or structured data like CRM systems [27][28][29][30] - Graph algorithms (clustering, link prediction, page rank) enrich the knowledge graph, enabling cross-document topic identification and summarization [20][30][34] Graph RAG Retrieval and Applications - Graph RAG retrieval involves initial index search (vector, full text, hybrid) followed by traversing relationships to fetch additional context, considering user context for tailored results [32][33] - Modern LLMs are increasingly trained on graph processing, allowing them to effectively utilize node-relationship-node patterns provided as context [34] - Tools and libraries are available for knowledge graph construction from various sources (PDFs, YouTube transcripts, web articles), with open-source options for implementation [35][36][39][43][45] - Agentic approaches in Graph RAG break down user questions into tasks, using domain-specific retrievers and tools in sequence or loops to generate comprehensive answers and visualizations [42][44] - Industry leaders are adopting Graph RAG for production applications, such as LinkedIn's customer support, which saw a 286% reduction in median per-issue resolution time [17][18]