The current bottleneck in LLM applications isn't model size; it's contextual reliability. Standard Retrieval-Augmented Generation (Vector RAG) treats your data as a flat list of text chunks. GraphRAG treats it as a web of entities and relationships.
This page covers the architectural shift from "finding similar text" to "traversing structural truth."
Vector RAG relies on semantic proximity (cosine similarity in embedding space). If the query is "What is the battery life of the X1 Carbon?", vector search finds chunks containing those terms.
GraphRAG relies on structural traversal. It solves the three "hard" problems of vector-only systems:
Entity A to Entity C via Entity B, vector search often fails. It retrieves A and C, but misses the crucial link B because B might not be semantically "similar" to the query.is-a: Fruit, the other is-a: Corporation).Building a Knowledge Graph (KG) with an LLM isn't just about calling extract_triples(). You need a robust Entity Resolution (ER) pipeline to prevent your graph from becoming a "synonym soup."
The 2025 standard pipeline follows a three-stage generative process:
Instead of O(n^2) pairwise comparisons, use dense embeddings to group similar candidates into "blocks."
Inside each block, use a small, fast model (e.g., Llama-3.1-8B or Gemini-1.5-Flash) to perform Reasoning-based Matching.
tax_id, headquarters, and founding_date."Take the matched set and generate a single Golden Record.
GraphRAG retrieval isn't a single algorithm. You pick based on the query type.
Best for: "Who is the lead engineer for Project Icarus and what is their clearance?"
Project Icarus node.lead_engineer edge to the Person node.clearance attribute of the Person.Project -> Person -> Clearance to the LLM.Best for: "What are the major risks identified in the Q3 audit?"
Do not use a single prompt to extract an entire graph from a PDF. It will miss ~60% of relationships. Use a Sliding Window + Deduplication loop.
def extract_and_merge(text_stream, graph_db):
for window in sliding_window(text_stream, size=2000, overlap=500):
# 1. Extraction: High-temperature for creativity
raw_triples = llm.extract(window, schema=ProjectOntology)
# 2. Local De-duplication: Compare triples within the window
clean_triples = local_dedupe(raw_triples)
# 3. Global Upsert: Merge into the KG using Entity Resolution
for s, p, o in clean_triples:
graph_db.upsert_semantic_edge(s, p, o)
United States.
Person can only manage a Project, reject a triple where a Person manages a Document.[Unstructured Data] ──▶ [LLM Extraction] ──▶ [Entity Resolution] ──▶ [Graph DB]
│
▼
[User Query] ──▶ [Hybrid Retrieval] ◀───────────────────────────────────┘
│ (Vector + Graph)
▼
[Reasoning Engine] ──▶ [Final Answer]
This architecture ensures that the LLM isn't "guessing" based on training data, but navigating your private enterprise facts. For the next step in implementation, see EntityResolutionTechniques for the matching logic or GraphRAG for specific traversal algorithms.