The practical answer
RAG helps an AI system answer from trusted knowledge. Agents go further by deciding what to do and using tools or systems to take action.
Questions teams ask
When should you use RAG?+
Use RAG when the core need is reliable access to organisational knowledge, documents or data.
When should you use an agent?+
Use an agent when the system must complete a task, coordinate steps or take actions through tools and APIs.
Can they work together?+
Yes. An agent may use RAG to retrieve trusted information before deciding what action to take.