RAG with Azure AI Foundry: Making Enterprise Knowledge AI-Ready

    Back to Blog
    Agentic AI

    RAG with Azure AI Foundry: Making Enterprise Knowledge AI-Ready

    Implement Retrieval-Augmented Generation (RAG) – how to connect your documents with AI models in Azure AI Foundry.

    November 4, 202510 min read
    Patrick Trapp

    Patrick Trapp

    Solution Architect

    patrick.trapp@cnext.ch
    8+ Jahreexperience·8×Microsoft Applied Skills·Microsoft Copilot & AI Agents
    CNEXT AI Agent

    Quick Answer

    Implement Retrieval-Augmented Generation (RAG) – how to connect your documents with AI models in Azure AI Foundry.

    RAG (Retrieval-Augmented Generation) connects LLMs with your enterprise knowledge. Azure AI Foundry provides all the tools for this.

    What is RAG?

    RAG extends LLMs with external data:

    1. 1User question
    2. 2Search in knowledge base
    3. 3Create context for LLM
    4. 4Answer with current knowledge

    Benefits:

    • Current information
    • Source citations possible
    • Fewer hallucinations
    • Domain-specific knowledge

    Architecture in Azure

    Components

    Documents → Azure AI Search (Index) → User Question → Vector Search → Relevant Chunks → LLM (Azure OpenAI) → Answer

    Azure AI Search

    Powerful search:

    • Vector search for semantics
    • Hybrid search (vector + keyword)
    • Facets and filters

    Embedding Models

    Convert texts to vectors:

    • text-embedding-ada-002
    • text-embedding-3-small/large
    • Multilingual models

    Implementation Steps

    1. Data Preparation

    Prepare documents:

    Chunking Strategy:

    • Fixed size (e.g., 500 tokens)
    • Semantic chunks
    • Overlap for context

    Metadata:

    • Source
    • Date
    • Category
    • Permissions

    2. Create Index

    Configure fields in Azure AI Search for ID, content, vector, and source with appropriate search profiles.

    3. Generate Embeddings

    Create embeddings for each chunk with models like text-embedding-3-small.

    4. Retrieval Logic

    For user queries, embed the question and search the index with vector queries.

    5. Prompt Assembly

    Assemble context with found chunks and system prompt for the LLM.

    Best Practices

    Improve Quality

    • Reranking – Resort results
    • Query Expansion – Add synonyms
    • Feedback Loop – Learn from ratings

    Scaling

    • Incremental updates
    • Batch processing
    • Cache frequent queries

    Optimize Costs

    • Smaller models for embedding
    • Efficient chunking
    • Set token budgets

    SharePoint Integration

    Particularly relevant for M365 customers:

    1. 1Graph Connector for SharePoint
    2. 2Automatic synchronization
    3. 3Consider permissions
    4. 4Use metadata

    CNEXT Expertise

    We offer:

    • RAG architecture design
    • Data pipeline development
    • SharePoint integration
    • Performance optimization

    Conclusion

    RAG turns LLMs into true enterprise assistants. Azure AI Foundry provides the platform – CNEXT the expertise.

    Azure AIAgentic AISchweiz
    Teilen:

    This article was created with the support of AI and reviewed by our team. We use AI tools to produce high-quality content efficiently — the editorial responsibility always lies with our experts.

    Patrick Trapp

    Patrick Trapp

    Solution Architect

    Have questions about this topic?

    Our experts are happy to advise you – free and without obligation.