London office · Whiteboard room
Services — RAG development, UK

RAG development
company in the UK.

Magora is a London software company that builds retrieval-augmented generation (RAG) systems: AI assistants and search that answer from your own documents, with a cited source for every answer.

Updated October 13, 2026
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In short

What RAG is and
when you need it.

Retrieval-augmented generation (RAG) is a way of making a large language model answer from your own documents. The system searches your content for the passages that match a question, hands them to the model, and the model writes an answer from those passages and cites them. You need RAG when people must get accurate answers from information that is private, specific to your business or changing often.

What it is

Search first, then answer

A normal chatbot answers from what the model learned in training. A RAG system looks up your documents first, so the answer comes from your content and can link back to it.

When you need it

Private, specific or changing content

Staff lose time searching policies, contracts or tickets; customers ask questions your documentation already answers; or you want AI that works from your data without training a model on it.

When you do not

Simpler tools are sometimes enough

If the job is drafting or summarising for one person, an off-the-shelf assistant is usually enough. If you have few documents or a fixed set of answers, ordinary search or a FAQ page may do. We will tell you which.

What we build

RAG development
services.

These are the six kinds of RAG system we build. Each one is measured against your real questions and connected to the systems you already use.

01 — Knowledge

Knowledge-base assistants

A chat assistant over your policies, handbooks, manuals and wikis. Staff ask in plain English and get a short answer with links to the pages it came from.

02 — Documents

Document Q&A

Ask questions of contracts, reports, claims files or technical documents and get answers with the quoted passage beside them, instead of reading hundreds of pages.

03 — Search

Internal and enterprise search

Search that understands meaning as well as keywords, across file stores, tickets and records, with filters and permissions so people only find what they may see.

04 — Support

Support copilots

Suggested replies and answers for your support or sales team, drawn from past tickets and product documentation, with a person approving what is sent. Customer-facing chat agents are built the same way.

05 — Agents

Agentic RAG

An AI agent that decides what to look up, searches several sources, checks what came back and then acts through your systems, with human approval for the steps that matter.

06 — Products

RAG inside your product

Answers, summaries and search added to the software you already run, without a rebuild. See AI & ML development for the wider range of AI work.

How it works

How a RAG system
answers a question.

Nine parts sit between your documents and an answer. Answer quality depends heavily on the first five, which is why we put as much care into ingestion and retrieval as into the choice of model.

01 — Ingestion

Connecting your content

Connectors read PDFs, Word files, web pages, tickets, emails and database records, extract the text and keep it in sync when documents change.

02 — Chunking

Splitting for meaning

Documents are cut into passages that make sense on their own, keeping headings, tables and metadata such as source, date and owner.

03 — Embeddings

Turning text into vectors

Each passage is converted into a numerical vector that captures its meaning, using an embedding model chosen for your language and subject matter.

04 — Vector store

Searchable index

Vectors are stored in a vector database with the original text and metadata, so the right passages can be found in milliseconds.

05 — Retrieval

Finding the right passages

A question is turned into a search that combines meaning and keywords, then re-ranks the results so the best evidence reaches the model.

06 — Generation

Answering with citations

The language model writes an answer using only the retrieved passages, and each statement links back to its source.

07 — Access control

Respecting permissions

Retrieval is filtered by who is asking, so the assistant never shows a document the person could not open themselves.

08 — Evaluation

Measuring answer quality

A test set of real questions with known answers is run on every change, scoring retrieval and answers so quality is measured rather than assumed.

09 — Guardrails

Limits and monitoring

Refusals when nothing relevant is found, personal data redaction where needed, an audit log of questions and answers, and monitoring of accuracy and cost after launch.

RAG tech stack

The stack
behind our RAG systems.

Chosen per project for accuracy, latency, cost and where your data is allowed to live. The system is model-agnostic, so swapping the model later does not mean rebuilding the pipeline.

Models
  • OpenAI GPT models
  • Anthropic Claude
  • Google Gemini
  • Llama, Mistral, Qwen
Orchestration
  • LangChain
  • LlamaIndex
  • Bespoke orchestration
  • Tool / function calling
Retrieval
  • pgvector
  • Pinecone
  • Weaviate
  • Qdrant
  • Hybrid search & re-ranking
Sources & integrations
Infrastructure
  • AWS Bedrock
  • GCP Vertex AI
  • vLLM / Ollama self-hosting
  • UK / EU regions
Safety & quality
  • Evaluations in CI
  • Guardrails & approvals
  • Audit logging
  • GDPR by default
  • EU AI Act readiness review
Security & data residency

RAG that keeps your
data where it belongs.

The first question most clients ask is where their documents go. These are the options we design with; the right mix for your project is agreed in Discovery.

No training

Your documents are not training data

We build on business API tiers, such as the OpenAI and Anthropic APIs, Azure OpenAI and AWS Bedrock, whose terms exclude training on customer inputs by default. We check the current terms for your use case in Discovery, and switch on zero or limited retention where the provider offers it.

Location

UK or EU hosting options

Application data, vector stores and logs can live in UK or EU cloud regions. Where you need model processing in-region too, we choose a provider and model that offer it.

Private

Private deployments

Models can run through Azure OpenAI or AWS Bedrock inside your own cloud account, or as open-source models self-hosted in your VPC or on your own servers, as we did for the University of Essex.

Control

Access, redaction and audit

Role-based access to sources, personal data redacted before prompts where needed, and configurable logging so you can see what the system was asked and what it answered.

Compliance

GDPR and regulated sectors

Data-minimisation review in Discovery, DPIA support, and experience in healthcare, financial services and education, where the rules on data are strictest.

AI Act

EU AI Act readiness

A risk-tier review before deployment, with the transparency and documentation your system needs if you serve EU users.

Choosing an approach

RAG vs fine-tuning
vs a plain LLM.

Most business projects start with RAG, and some add fine-tuning later for style or format. A free prototype and Discovery show which approach does the job at the lowest running cost.

Plain LLM (prompting a model API)RAG over your dataFine-tuning
Best forDrafting, summarising, classifying and general chatAnswers grounded in your own documents and recordsA consistent style, format or narrow domain task
Knows your documentsNo, unless you paste them in each timeYes, it retrieves them at question timeOnly what was in the training examples
Cites sourcesNot reliablyYes, each answer can link to its passagesNo
When your content changesNothing to update, but nothing is known eitherRe-index the changed documentsRetrain the model
Data you needLittle or noneThe documents the answers should come fromHundreds to thousands of good examples
Main trade-offCan answer confidently from general knowledge instead of yoursOnly as good as the content and the retrievalNeeds retraining as things change
Process

From documents
to working answers.

Same senior engineers from the first workshop to handover, weekly demos on your data, and no offshore rotation. The prototype is free; the price of the build is fixed after Discovery.

Step 01

Free prototype

5 – 10 working days

A coded RAG prototype running on a sample of your real documents, so the first conversation about accuracy is about evidence rather than promises.

Real document sampleModel shortlist
Step 02

Discovery

2 weeks · from £3,000

We map the document sources, access rules and the questions people actually ask, review data protection, and agree a fixed estimate that is yours to keep, whoever builds it.

Source auditQuestion setGDPR review
Step 03

Proof of concept

4 – 6 weeks · from £15,000

The system runs on real data in a controlled pilot, with evaluations that show whether retrieval and answers are good enough to scale.

EvaluationsPilot users
Step 04

Production build

Typically 6 – 8 weeks after Discovery

Connectors, vector database, access control, API and interface are built and integrated with your systems, with weekly demos on your data.

ConnectorsAccess controlAudit log
Step 05

Run & improve

Ongoing

Monitoring of answer quality, cost and drift; re-indexing as documents change; and a plan for when the content, the process or the model changes.

MonitoringCost controlSupport
Pricing

What RAG development
costs in the UK.

A RAG pipeline with a vector database and API starts from £30,000 at Magora. These are indicative 2026 prices in GBP; every engagement starts with a free working prototype, and the final figure is fixed after Discovery, when the documents, access rules and integrations are known, then quoted as a fixed price. Support after launch is £2,000–£4,000 per month. See our UK software development pricing, or estimate your own with the cost calculator.

Working prototype
£0

A coded prototype on your own example documents in 5–10 working days, before you commit to anything.

Discovery
from £3,000

Two weeks: source audit, question set, data-protection review and a fixed estimate.

AI proof of concept
from £15,000

4–6 weeks. The system on real data in a controlled pilot, with evaluations.

Production LLM application
from £40,000

A production-grade LLM application with evaluations, monitoring and UK / EU data residency.

AI agents
from £20,000

Agents that automate internal workflows with tool use and human sign-off.

Case studies

AI we've
put into production.

Not all of our published AI projects are RAG systems, and we do not present them as such. These three show the parts of a RAG project that matter most: answers limited to approved sources, data that stays private, and AI that works inside the tools staff already use.

Call centres · Voice AI · 2025

Empath AI

Problem
Call-centre agents had no way to pick up undeclared signs of caller vulnerability, such as anxiety or cognitive decline, during a live call.
Built
A SaaS platform that analyses vocal biomarkers in live calls, turns them into guidance prompts shown to the agent inside Microsoft Teams, and adds call management reporting and anonymous diagnosis reporting.
Outcome
Agents get live, empathetic guidance in the tool they already use, and managers see caller and agent-wellbeing trends without exposing individuals.
Link to RAG
Shows AI guidance delivered inside the tools staff already use, which is where a support copilot sits.
Read the case study →
Healthcare · LLM · 2025

BodySync

Problem
Clinicians spent long hours drafting personalised treatment plans by hand and looking up exercises.
Built
A web app that takes structured input (diagnosis, assessment findings, treatment preferences, goals) and drafts a phase-appropriate plan with OpenAI, restricted to pre-defined peer-reviewed clinical sources. Built for HIPAA and GDPR, with one-click send or PDF export.
Outcome
The MVP is in use in UK clinics, and further development is planned.
Link to RAG
Shows the core RAG principle: the model is limited to approved sources instead of answering from general knowledge.
Read the case study →
Education · Private AI · 2025

University of Essex

Problem
Sensitive files had to be classified by confidentiality level, and cloud AI services were not allowed.
Built
A self-contained AI Orchestrator module running two local models: an LLM (Mistral 7B) that proposes new semantic tags and confidentiality rules for human review, and a fine-tuned entity-recognition model that applies the approved rules and writes a standard YAML file.
Outcome
Classification is automated without sending data to third-party cloud APIs, and the model is retrained as experts review new tags.
Link to RAG
Shows the private route: local models and no cloud AI, for data that cannot leave your infrastructure.
Read the case study →

Also: Rollio, KMA 9x9, Interprefy. All projects →

Client reviews

What clients
say.

Verified reviews from our Clutch profile — 4.9 out of 5 across 71 client reviews.

5.0

“We were very happy with the overall experience.”

Co-Founder, empath-AI
AI MVP · Financial services · 2025
Verified review on Clutch →
5.0

“Partnering with Magora for the development of the messenger was a decision we will never regret.”

Chief Business Officer, Easy Report
Chatbot & mobile · BI software · 2023
Verified review on Clutch →
5.0

“They're accessible, and it doesn't feel like I'm working with a faceless team.”

COO, Casual Films
Web app · Media production · 2023
Verified review on Clutch →
Clutch Top App Development Company — Startup, United Kingdom Clutch Top Software Developers — Startup, United Kingdom Clutch Top Software Developers — Enterprise, United Kingdom
Premier VerifiedClutch
ISO/IEC 27001Information security
ISO 9001Quality management
Frequently asked

RAG development:
the honest questions.

Thinking about a wider AI build? See AI & ML development and AI agent development, the fixed-price software development process, or the checklist: is your business ready for an internal AI agent?

What is RAG, and how does it work?

RAG stands for retrieval-augmented generation. Instead of letting a large language model answer from memory, the system first searches your own documents for the passages that match the question, then asks the model to write an answer using only those passages and to cite them. The answers stay tied to your content, and they stay current as your documents change, without retraining the model.

How much does RAG development cost in the UK?

At Magora, a RAG pipeline with a vector database and an API starts from £30,000. An AI proof of concept starts from £15,000 (4–6 weeks), a production LLM application from £40,000, and Discovery from £3,000. The prototype is free, and support after launch is £2,000–£4,000 per month. These are indicative 2026 prices in GBP; the final figure is fixed after Discovery, when the documents, access rules and integrations are known, and the build is then quoted as a fixed price. See the full UK software development pricing or try the cost calculator.

How long does it take to build a RAG system?

A coded prototype on a sample of your documents takes 5–10 working days and is free. Discovery takes two weeks. An AI proof of concept takes 4–6 weeks, and a first production release typically takes 6–8 weeks after Discovery. The time depends mostly on how many document sources there are, how clean they are and how strict the access rules need to be.

Should we use RAG or fine-tuning?

Most business use cases start with RAG. The model answers from your own documents and records, which stay up to date without retraining, and every answer can point to its source. Fine-tuning fits when you need a consistent style, format or narrow task and have good examples to train on. The two can be combined. Discovery shows which one, or which mix, your case needs. The comparison table above sets them side by side.

Can you build a private ChatGPT for our company documents?

Yes. That is a common RAG request: an assistant that answers staff or customer questions from your policies, manuals, tickets and files, and only shows each person what they are allowed to see. It can run on a business API tier that does not train on your inputs, inside your own Azure or AWS account, or on open-source models hosted on your own infrastructure when the data must not leave it. If a ready-made tool such as Microsoft Copilot already covers your documents well enough, we will say so.

Where is our data stored, and will it be used to train AI models?

Not by us, and not by the model providers we build on by default. We use business API tiers, such as the OpenAI and Anthropic APIs, Azure OpenAI and AWS Bedrock, whose terms exclude training on customer inputs by default, and we check the current terms for your project in Discovery. Application data, vector stores and logs can be hosted in UK or EU cloud regions. If model processing must also stay in-region, we choose a provider and model that support it, or deploy privately.

How do you stop a RAG system from making things up?

No RAG system is guaranteed to be right every time, so we design to catch errors rather than promise there are none. The model is instructed to answer only from the retrieved passages, every answer carries citations so a person can check it, and the system says it cannot find an answer when retrieval returns nothing relevant. A test set of real questions with known answers runs on every change, so a drop in quality is caught before release. Sensitive answers can wait for human approval.

Which UK companies build production RAG systems and AI agents?

Magora is one of them: a London software company, in business since 2010, that builds RAG systems, AI agents and LLM applications from a free prototype to production, with the same senior team throughout. Whoever you ask, check four things: can they show a working prototype on your documents, how they measure answer quality, where your data is processed, and whether the code, prompts and evaluation sets become yours. At Magora they do: source code, prompts and evaluation sets transfer to you on payment, and we sign an NDA on day one.

Have documents
people can’t search?

30-minute call with a senior AI engineer. Tell us what your team looks up every day — we’ll say whether RAG fits, what a free prototype on your documents would show, and what the build would cost.

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