The problem with answering from memory
A language model produces fluent text from patterns it learned. Asked about your prices, it may produce a plausible number that is simply wrong.
Grounding
A grounded system first retrieves the relevant facts from your data, then writes an answer using only those facts. If nothing relevant is found, the right answer is "I don’t know".
Why it matters for business
- Prices and stock must be right.
- Wrong answers cost trust and sales.
- You can check where an answer came from.
What it does not do
Grounding reduces wrong answers; it does not remove them. Data can be missing or out of date, so testing and review still matter.
Part of: AI for business
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Last updated 2026-09-25. Something unclear or wrong? Tell us.