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GraphRAG vs Vector RAG: The Question Types Decide, Not the Technology

GraphRAG vs vector RAG is not a battle for the standard retrieval layer. A vector pipeline finds passages that resemble your question; a graph pipeline traverses relationships between entities. They fail on different questions, and the useful decision is a mapping from question type to retrieval shape, applied to your own workload rather than to a general principle.

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.

What does each approach actually retrieve?

Both approaches answer the same question shape — "what should the model see" — and they fill the context window with structurally different things.

DimensionVector RAGGraphRAG
Unit retrievedPassages, ranked by embedding similarityEntities, relationships and paths, optionally with supporting passages
Relationship handlingImplicit — a relation is only findable if the passage containing it is similar enough to be retrievedExplicit — a relation is a first-class object and can be traversed directly
Multi-hop questionsWeak. Each hop must independently surface a similar passageStrong. A path is constructed rather than discovered
Global aggregationWeak. "How many of our contracts contain an uncapped liability" needs corpus-wide countingStrong. The graph can be queried as a whole
Definitional lookupStrong. The definition is usually in a passage that resembles the questionModerate, and slower — the graph may not encode definitions
Ambiguous entity handlingInvisible — a passage about a similarly-named entity is simply retrievedVisible and dangerous — unresolved entities create distinct nodes, and the graph can confidently assert a wrong link
Latency profileLow and predictable; dominated by the embedding and generation callsQuery time is usually fine; the cost is in the index, not the query
Failure modeWrong passage retrieved; the answer is unsupportedWrong entity link; the answer is confidently wrong and harder to spot

The last two rows are the ones that matter commercially. Vector RAG fails visibly, because a retrieved passage that does not support the claim is usually detectable by a reader. Graph RAG can fail invisibly: a mis-resolved entity produces a graph in which a false relationship is a first-class fact, and the traversal returns it with complete confidence. Graph quality therefore has to be a governed artefact with an owner, not a build step someone ran once.

Vector retrieval versus graph-based retrieval, honestly

Neither is correct. They answer different questions, and the expensive mistake is choosing one before you know which question you are asking.

DimensionVector retrievalGraph-based retrievalWhen it matters
Relationship reasoningWeak — proximity is not relationshipNative — traversal follows the model's edgesWhen the question requires joining facts across entities
Multi-hop questionsFails without decompositionHandles directlyWhen the answer needs three or four connections
Global summarisationPoor — must retrieve everything relevantGood — aggregate over the graphWhen asking about a whole portfolio or population
FreshnessSimple — re-index the sourceHarder — schema and data both changeWhen the source data updates frequently
Ingestion costLowHigh — needs an entity resolution stepEarly in a programme, vector wins on cost
ExplainabilityShows passagesShows the path through the modelWhen a regulator asks why
Failure modeSilently misses the connectionSilently drops an entity at resolutionBoth fail silently — which is the real problem

Which question types need which shape?

This is the mapping that actually decides the architecture, so it is worth stating concretely rather than in principles.

Question typeExampleBetter fitWhy
DefinitionalWhat is the standard notice period in our service agreement?VectorThe definition sits in a passage closely resembling the question
Keyword or identifier lookupWhat is the cap in contract 4471?Vector or structuredExact match; neither approach adds value
Summarising a documentSummarise the termination clausesVectorPassage-level selection is what is wanted
Two-hop relationshipWhich contracts have a supplier who also serves a competitor?GraphRequires a link that is not textually adjacent
Path and chainWhat is the approval chain for a waiver above this threshold?GraphThe answer is a path, not a passage
Global aggregationHow many of our contracts contain an uncapped liability?GraphRequires counting over the whole corpus
Impact and blast radiusIf this supplier fails, which services are affected?GraphRequires traversing a dependency structure
Cross-document synthesisWhat does our policy say about this, and what did we do last time?HybridNeeds one passage and one historical case

Read the table by workload rather than by row. If eight of your top ten question types are definitional, lookup and summarising, a well-tuned vector pipeline with reranking is the right answer and a graph adds cost without capability. If the top types include paths, dependencies and aggregation, the vector pipeline will plateau and the graph is what moves it. Most enterprise estates are a mixture, which is why hybrid deployments are common.

Which one you need depends on the shape of the question

The question, not the technology trend, decides this. Most organisations reach for graph because it sounds more advanced, and then cannot maintain the entity resolution it requires.

How dynamic is the data?↑

Graph retrieval

Relational and stable. Policy dependencies, entity relationships, portfolio-level questions. This is where graph genuinely earns its cost.

Graph with a vector fallback

Relational and changing. Common in practice, and honestly the right answer for most enterprises — at a cost people underestimate.

Vector retrieval

Non-relational and changing. Document search, policy lookup, unstructured text. Simpler and often entirely sufficient.

Neither, yet

Non-relational and stable. Rare, and usually a sign the question has not been specified properly.

How relational is the question?→

Where does vector RAG genuinely fail?

Vector RAG does not fail because the embedding is weak. It fails for structural reasons, and the diagnosis matters because each failure has a specific fix.

  • The evidence is not in one passage. The answer requires combining a contract term with a schedule and an amendment. Each piece may be individually retrievable, but the ranking that surfaces the most semantically similar piece buries the others. This is a ranking failure, and reranking and fusion address it — not a graph.
  • The question needs a count. "How many" cannot be answered from the top-k passages, because counting requires the whole set. This is the clearest case for a structured or graph retrieval path.
  • The relation is implicit. Two documents refer to the same entity without naming it identically, so no passage contains both. Nothing to retrieve, because the bridge is not text. This is the case where a graph genuinely wins — provided the entity resolution was done properly.
  • The corpus is too large to retrieve from. At a certain scale, top-k over a vector index is dominated by the most semantically similar and least authoritative documents. A structured filter — by entity, by date, by document type, by permission — has to come before the similarity ranking, and that is a hybrid design.
  • Authority is wrong. The most similar passage is a superseded version, a draft, or a document from a business unit that does not own the policy. No retrieval tuning fixes a missing authority model. This is a governance problem that the semantic layer solves.

That last point is worth dwelling on, because it recurs. A large share of enterprise "RAG is not accurate enough" cases are not retrieval problems at all. They are the absence of a single source of truth, expressed as a retrieval symptom. Adding a graph to that estate adds machinery on top of an unresolved semantic question, which is why we always diagnose before recommending architecture.

What does GraphRAG cost to run?

The cost sits in indexing, not in querying, and this is the single fact that determines whether a graph is viable for a given estate.

Query cost is the opposite: usually comparable to or below a vector pipeline, because a traversal returns a small, tightly scoped set rather than a broad neighbourhood of similar passages. So the trade is a higher fixed and recurring cost for a narrower, more reliable result set.

Cost dimensionVector RAGGraphRAG
Initial buildLow — chunk, embed, indexHigh — extraction, entity resolution, graph construction
Change to corpusIncremental re-index of changed documentsPartial rebuild and re-linking; entity resolution must be revisited
QueryLow, predictableComparable or lower, with more variance by question type
StorageEmbeddings plus the textText plus the graph structure and its provenance links
Ongoing effortRetrieval tuningRetrieval tuning plus graph quality maintenance: resolution, de-duplication, edge confidence
Failure blast radiusA wrong answer on one questionA false relationship propagates across many traversals until it is found

The last row is the operational argument for governance over the graph. A mis-resolved entity in a vector corpus is a bad retrieval for one query. In a graph it is a false fact that many queries will retrieve. Which means a graph deployment needs a review process for extracted relationships, an owner for the graph as an artefact, and an evaluation set that includes entity-resolution cases — not only question-answering cases. That work is real, and it is the reason some enterprises should not adopt a graph approach even when the question types appear to call for one.

What does a hybrid retrieval setup look like?

Most production estates we work on are hybrid, and the pattern is consistent enough to describe.

  1. Classify the question first. A router — which can itself be a small model — decides whether the question is a lookup, a relationship question, an aggregation, or a synthesis. This is the single highest-leverage component in a hybrid system, because it determines which path runs.
  2. Run structured filters before similarity. Entity, date, document type, jurisdiction, permission. Filtering first prevents a semantically perfect but unauthoritative document from ever reaching the candidate set, and it makes permission enforcement exact rather than approximate.
  3. Run the retrieval paths in parallel. Vector search for the semantic neighbourhood, graph traversal for the relationship path, and a structured query for anything countable or filtered.
  4. Fuse and rerank. Merge the candidate sets with a reciprocal-rank style fusion, then rerank the merged set with a scoring model, so the final context window contains the best evidence from all paths rather than the union of them.
  5. Keep the trace. Record which path produced which passage. This is what makes a bad answer diagnosable, and it is what tells you over time whether the graph path is earning its maintenance cost.

Step five is where most organisations fail, and it is what makes hybrid systems hard to operate. Without per-path provenance you cannot tune the system, retire an unproductive path, or defend the cost of the graph index. The knowledge and context capability page describes how we keep retrieval provenance and source traceability attached to every answer in delivery.

What we usually recommend

The honest answer is that most enterprises need vector retrieval first, a small amount of graph where the questions genuinely require it, and a clear plan for the entity resolution that graph depends on. The dishonest answer is buying a graph platform before you know whether your questions need one — and then discovering that the entity resolution work, not the graph, was the actual project.

How do you decide for your own estate?

Three weeks of work, and it will save a quarter of wasted platform spend.

  1. Build a question inventory. Take real questions from real users — a few hundred — and cluster them by type using the table above. Do not ask the team to estimate the distribution; pull the actual logs or the actual tickets.
  2. Measure your vector pipeline against it. Run the inventory through your current retrieval setup and record the per-type failure rate. Most enterprises find a bimodal result: near-zero failures on definitional questions and a persistent tail on relationship and aggregation questions that no amount of prompt tuning will fix.
  3. Test the specific gap with a graph, narrowly. Take one question type that fails, one domain, one entity resolution problem, and build a minimal graph for that slice only. Measure whether the failure rate moves. If it does not, the problem was never retrieval and you have learned something valuable for a modest cost.
  4. Decide by workload share times value. A question type worth a large share of high-value queries justifies a graph even at high maintenance cost. A rare type does not, and may be better served by a good escalation to a human.
  5. Price the maintenance honestly. If the answer is yes to a graph, add the entity-resolution review, the re-indexing schedule and the graph evaluation set to the business case. A graph with no owner is a liability, because it will be confidently wrong.

One practical note on the business graph. If your enterprise already has a governed ontology describing customers, contracts and policies, a graph retrieval layer over it is comparatively cheap, because the hard work — entity identity, relationships, provenance — is already done and maintained as a business asset. If it does not, the graph retrieval layer becomes the place where that work is done, and it needs the same governance either way. Our enterprise AI and ontology practice exists because that is usually the decisive variable.

Where do we draw the boundary?

We do not recommend a graph architecture because it is the sophisticated choice, and we will decline to build one where a tuned vector pipeline answers the workload. GraphRAG earns its cost on multi-hop, relationship, dependency and aggregation questions, and on nothing else. If your question set does not contain those, the honest recommendation is to tune what you have — which is the majority of the estates we assess in Singapore, Hong Kong SAR and across Asia Pacific.

We also do not treat a graph as a substitute for a settled definition of the business. A graph built over an ambiguous corpus will faithfully encode the ambiguity in a form that is harder to spot, because the structure lends it an authority it has not earned. Where definitions are unresolved, the work is semantic, and it belongs with the business teams — a point we make at length in our article on what enterprise ontology is and why agents depend on it.

And we are clear about the failure we see most often: an enterprise adopts a graph retrieval approach, sees the multi-hop question type improve, and concludes the whole retrieval problem is solved. It is not. The single-document questions, the authority questions and the permission questions are still where most of the failures live.

FAQ

Frequently asked

What is GraphRAG?

GraphRAG is a retrieval architecture that builds a knowledge graph from the corpus — entities, relationships and their attributes — and answers questions by traversing that structure, optionally combining the traversal results with a vector search over the underlying text. It is defined by what it retrieves: relationships and paths, rather than similar passages.

When should you use GraphRAG instead of vector RAG?

Use GraphRAG when the question requires multiple hops across entities, when the answer is a relationship or a path rather than a passage, when global aggregation across the whole corpus is needed, or when a vector pipeline has plateaued on questions that require joining sources. Use vector RAG for single-document lookup, definitional questions, and high-volume low-latency retrieval.

Is GraphRAG more accurate than vector RAG?

On multi-hop and aggregation questions, frequently yes. On simple lookup questions, it is usually not — it adds indexing cost and latency for no benefit. The honest answer is that they fail on different questions, and the practical question is which question types dominate your workload.

How much does GraphRAG cost to run?

The cost sits in indexing rather than inference: extraction and graph construction run over the whole corpus and must be re-run when the corpus changes. Query-time cost is usually comparable or lower, because a traversal returns a small, highly relevant set. For a large or frequently-changing corpus, this is a real ongoing cost and is the main reason enterprises adopt it selectively.

Can you use GraphRAG and vector RAG together?

Yes, and most production deployments do. The common pattern is hybrid retrieval: a vector search for semantic similarity, a graph traversal for relationships, fused and reranked before generation. It costs more to build and it answers a wider range of questions than either alone.

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