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When to use RAG and when to build an AI agent

Choose between document retrieval and tool-using AI workflows.

Start with a grounded answer

To answer questions about course documents, index them and retrieve relevant passages. Compare generated answers with known examples and check their citations.

Add tools when the workflow must act

For a workflow that checks enrolment or creates an enquiry, define each tool’s inputs and permissions. Route consequential actions through human approval when appropriate.

Evaluate both paths

Measure whether the answer uses the right evidence and whether each requested action was permitted and completed. Include ambiguous requests and tool failures in the test cases.