What is GraphRAG?
GraphRAG is a retrieval architecture that builds a knowledge graph from the corpus — entities, their relationships and their attributes — and answers questions by traversing that structure, optionally combined with a vector search over the underlying text.
Three stages define it. Extraction identifies entities and relationships in the source material, and this is where the quality of the graph is won or lost: an entity not resolved to a single identity becomes a node representing half a customer. Construction links the extracted elements into a graph and connects it to the source passages, so every retrieved fact stays traceable to its text. Traversal answers the question by walking the structure.
A distinct use of the term in the enterprise context is worth separating, because it is a different thing: applying a graph structure to the business itself rather than to the document corpus. An ontology modelling your customers, contracts, products and policies is a business graph; GraphRAG traversing a graph built from your documents is a retrieval architecture. The two are complementary, and the second becomes considerably better when the first exists.