Why RAG Breaks Down in Real-World AI Deployments

Why RAG Breaks Down in Real-World AI Deployments

RAG’s conceptual promise fails under O(n^2) real-world complexity due to excessive latency from inefficient retrieval and generation coupling. The economic burden from server costs, up to $0.10/token, compounds the inefficiencies, making deployment unsustainable. Without significant restructuring, enterprises face prohibitively high costs and underperformance.