๐Ÿ—‚๏ธ Build the Knowledge Base for LLMs

Sep 30, 2025ยท
Yuxiao (Rain) Luo, PhD
Yuxiao (Rain) Luo, PhD
ยท 4 min read

Retrieval-Augmented Generation (RAG) has quickly become the go-to approach for connecting large language models (LLMs) to external knowledge bases. By retrieving chunks of information at query time, RAG ensures models can stay grounded in dynamic knowledge without retraining. RAG is not the only option. Depending on your needs of accuracy, latency, cost efficiency, or domain-specific reasoning, other approaches may be more suitable, or complementary.

Table of Contents

1. 7 Methods to Build LLM Knowledge Base

  1. Fine-Tuning / Domain Adaptation

What it is: Updating model weights with your knowledge base.

Best when:

  • Knowledge base is stable (not updated daily).
  • Need to internalize jargon, style, or reasoning patterns.

Drawbacks: Expensive to retrain frequently; inflexible with changing data.

  1. Adapters & LoRA (Low-Rank Adaptation)

What it is: Lightweight fine-tuning layers injected into the model.

Best when:

  • Domain-specific adaptation is needed without full fine-tuning costs.
  • You want iterative, lower-cost updates.
  • Can be combined with RAG for retrieval grounding.

LoRA explained

  1. Knowledge Graphs (KG) & Graph Neural Networks

What it is: Represent knowledge as a graph of entities and relations.

Best when:

  • Knowledge is structured and relational.
  • Need reasoning like โ€œWhich suppliers connect to both X and Y?โ€.
  • Require consistency and explainability.

Challenges:Building and maintaining graphs is resource-intensive.

  1. In-Context Learning with Memory

What it is: Long-term memory (vector DB, episodic memory) the model can update/query.

Best when:

  • Conversational agents need continuity and personalization.
  • Knowledge evolves during interactions.

Challenges:Scaling memory and filtering relevance.

  1. Hybrid: RAG + Structured Tools

What it is: Combine retrieval with APIs, SQL, or KG lookups.

Best when:

  • Part of KB is unstructured (docs, PDFs) and part structured (DBs, APIs).
  • Need higher factual accuracy with authoritative sources.
  1. Pre-Computing & Indexing (Distillation)

What it is: Compress KB into synthetic training data and fine-tune/prompt-tune.

Best when:

  • Latency is critical.
  • KB fits into model limits after distillation.

Drawbacks: Hard to update; hallucination risk.

  1. Agentic Systems with Tool Use

What it is: LLM calls specialized tools (search engines, SQL, reasoning modules).

Best when:

  • Tasks require computation + knowledge.
  • E.g., โ€œWhatโ€™s the average downtime for servers in Q3?โ€

Advantage: Enables dynamic reasoning and problem-solving.

โœ… Summary

  • RAG โ†’ best for dynamic, text-heavy KBs.
  • Fine-tuning/LoRA โ†’ best for stable, domain-specific KBs.
  • KGs & hybrids โ†’ best for structured reasoning.
  • Agentic tool use โ†’ expands beyond retrieval into active problem-solving.

2. Token Cost Efficiency

If you consider token cost efficiency rather than maximizing the performance, here is a table compare the token costs for different methods.

  • Token Cost Comparison
MethodInference Token CostTraining / Setup CostUpdate FlexibilityBest For
RAGHigh (retrieved text inflates prompt)LowVery high (just re-index docs)Dynamic/unstructured KB
Fine-TuneLow (query + response only)Very highLow (expensive retraining)Stable, domain-specific KB
LoRA/AdaptersLowMediumMedium (cheap retraining)Semi-dynamic KB, budget-sensitive
KGVery LowHigh upfrontMedium (graph updates)Structured knowledge, reasoning tasks

Bottom line:

  • If token cost matters most โ†’ Fine-tuning, LoRA, or KG beat RAG.
  • If knowledge updates often โ†’ RAG is cheapest overall.
  • If structured data dominates โ†’ KG is the long-term token-efficient choice.

3. Using Google Gemini API / Vertex AI

In this section, I introduce 5 paths for building LLM knowledge base with Google Gemini API or Vertex AI.

  1. RAG
  • Use Vertex AI RAG Engine or Vertex AI Search for enterprise document search.
  • Optionally add Google Search grounding for web freshness + citations.
  1. Fine-Tuning
  • Supported on Vertex AI Supervised Tuning.
  • Not currently available in standalone Gemini API.
  1. LoRA / Adapters
  • Managed via Vertex AI for open models (e.g., Gemma).
  • Not directly exposed in Gemini API.
  1. Knowledge Graphs
  • Stand up Neo4j/Graph DB; integrate via function calling.
  • Compact, token-efficient structured facts.
  1. Agentic Tools
  • Available via function calling for dynamic reasoning and computation.

4. TF-IDF: A Classic RAG Baseline

Before embeddings, TF-IDF (Term Frequencyโ€“Inverse Document Frequency) was the standard retrieval method.

Key idea: Highlight terms that are frequent in a document but rare across the corpus.

Applications:

  • Document similarity & clustering
  • Text classification (spam filtering, sentiment analysis)
  • Keyword extraction
  • Recommendation systems

๐Ÿ“š GeeksforGeeks TF-IDF tutorial

INFS247-Dr.Luo Chatbot

This is an RAG example that employs TF-IDF to retrieve Syllabus information in an Course AI Assistant:


5. Final Thoughts

RAG may dominate today, but itโ€™s just one part of the ecosystem:

  • Go RAG if KB updates frequently.
  • Go Fine-tuning/LoRA for stable, domain-specific KBs.
  • Go KG for relational reasoning.
  • Go Hybrid/Tools for dynamic reasoning + computation.

๐Ÿ‘‰ The future is RAG + fine-tuning + tools + structured data: a complementary stack, not a competition.


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Yuxiao (Rain) Luo, PhD
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Assistant Professor of Information Systems