Building a Graph RAG System: A Step-by-Step Approach

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Building a Graph RAG System: A Step-by-Step ApproachBuilding a Graph RAG System: A Step-by-Step Approach

Building a Graph RAG System: A Step-by-Step Approach
Image by Author | Ideogram.ai

Graph RAG, Graph RAG, Graph RAG! This term has become the talk of the town, and you might have come across it as well. But what exactly is Graph RAG, and what has made it so popular? In this article, we’ll explore the concept behind Graph RAG, why it’s needed, and, as a bonus, we’ll discuss how to implement it using LlamaIndex. Let’s get started!

First, let’s address the shift from large language models (LLMs) to Retrieval-Augmented Generation (RAG) systems. LLMs rely on static knowledge, which means they only use the data they were trained on. This limitation often makes them prone to hallucinations—generating incorrect or fabricated information. To handle this, RAG systems were developed. Unlike LLMs, RAG retrieves data in real-time from external knowledge bases, using this fresh context to generate more accurate and relevant responses. These traditional RAG systems work by using text embeddings to retrieve specific information. While powerful, they come with limitations. If you’ve worked on RAG-related projects, you’ll probably relate to this: the quality of the system’s response heavily depends on the clarity and specificity of the query. But an even bigger challenge emerged — the inability to reason effectively across multiple documents.

Now, What does that mean? Let’s take an example. Imagine you’re asking the system:

“Who were the key contributors to the discovery of DNA’s double-helix structure, and what role did Rosalind Franklin play?”

In a traditional RAG setup, the system might retrieve the following pieces of information:

  • Document 1: “James Watson and Francis Crick proposed the double-helix structure in 1953.”
  • Document 2: “Rosalind Franklin’s X-ray diffraction images were critical in identifying DNA’s helical structure.”
  • Document 3: “Maurice Wilkins shared Franklin’s images with Watson and Crick, which contributed to their discovery.”

The problem? Traditional RAG systems treat these documents as independent units. They don’t connect the dots effectively, leading to fragmented responses like: 

“Watson and Crick proposed the structure, and Franklin’s work was important.”

This response lacks depth and misses key relationships between contributors. Enter Graph RAG! By organizing the retrieved data as a graph, Graph RAG represents each document or fact as a node, and the relationships between them as edges.

Here’s how Graph RAG would handle the same query:

  • Nodes: Represent facts (e.g., “Watson and Crick proposed the structure,” “Franklin contributed critical X-ray images”).
  • Edges: Represent relationships (e.g., “Franklin’s images → shared by Wilkins → influenced Watson and Crick”).

By reasoning across these interconnected nodes, Graph RAG can produce a complete and insightful response like:

“The discovery of DNA’s double-helix structure in 1953 was primarily led by James Watson and Francis Crick. However, this breakthrough heavily relied on Rosalind Franklin’s X-ray diffraction images, which were shared with them by Maurice Wilkins.”

This ability to combine information from multiple sources and answer broader, more complex questions is what makes Graph RAG so popular.

The Graph RAG Pipeline

We’ll now explore the Graph RAG pipeline, as presented in the paper “From Local to Global: A Graph RAG Approach to Query-Focused Summarization” by Microsoft Research.

Graph RAG Approach: Microsoft ResearchGraph RAG Approach: Microsoft Research

Graph RAG Approach: Microsoft Research

Step 1: Source Documents → Text Chunks

LLMs can handle only a limited amount of text at a time. To maintain accuracy and ensure that nothing important is missed, we will first break down large documents into smaller, manageable “chunks” of text for processing.

Step 2: Text Chunks → Element Instances

From each chunk of source text, we will prompt the LLMs to identify graph nodes and edges. For example, from a news article, the LLMs might detect that “NASA launched a spacecraft” and link “NASA” (entity: node) to “spacecraft” (entity: node) through “launched” (relationship: edge).

Step 3: Element Instances → Element Summaries

After identifying the elements, the next step is to summarize them into concise, meaningful descriptions using LLMs. This process makes the data easier to understand. For example, for the node “NASA,” the summary could be: “NASA is a space agency responsible for space exploration missions.” For the edge connecting “NASA” and “spacecraft,” the summary might be: “NASA launched the spacecraft in 2023.” These summaries ensure the graph is both rich in detail and easy to interpret.

Step 4: Element Summaries → Graph Communities

The graph created in the previous steps is often too large to analyze directly. To simplify it, the graph is divided into communities using specialized algorithms like Leiden. These communities help identify clusters of closely related information. For example, one community might focus on “Space Exploration,” grouping nodes such as “NASA,” “Spacecraft,” and “Mars Rover.” Another might focus on “Environmental Science,” grouping nodes like “Climate Change,” “Carbon Emissions,” and “Sea Levels.” This step makes it easier to identify themes and connections within the dataset.

Step 5: Graph Communities → Community Summaries

LLMs prioritize important details and fit them into a manageable size. Therefore, each community is summarized to give an overview of the information it contains. For example: A community about “space exploration” might summarize key missions, discoveries, and organizations like NASA or SpaceX. These summaries are useful for answering general questions or exploring broad topics within the dataset.

Step 6: Community Summaries → Community Answers → Global Answer

Finally, the community summaries are used to answer user queries. Here’s how:

  1. Query the Data: A user asks, “What are the main impacts of climate change?”
  2. Community Analysis: The AI reviews summaries from relevant communities.
  3. Generate Partial Answers: Each community provides partial answers, such as:
    • “Rising sea levels threaten coastal cities.”
    • “Disrupted agriculture due to unpredictable weather.”
  4. Combine into a Global Answer: These partial answers are combined into one comprehensive response:

“Climate change impacts include rising sea levels, disrupted agriculture, and an increased frequency of natural disasters.”

This process ensures the final answer is detailed, accurate, and easy to understand.

Step-by-Step Implementation of GraphRAG with LlamaIndex

You can build your custom Python implementation or use frameworks like LangChain or LlamaIndex. For this article, we will use the LlamaIndex baseline code provided on their website; however, I will explain it in a beginner-friendly manner. Additionally, I encountered a parsing problem with the original code, which I will explain later along with how I solved it.

Step 1: Install Dependencies

Install the required libraries for the pipeline:

graspologic: Used for graph algorithms like Hierarchical Leiden for community detection.

Step 2: Load and Preprocess Data

Load sample news data, which will be chunked into smaller parts for easier processing. For demonstration, we limit it to 50 samples. Each row (title and text) is converted into a Document object.

 

Step 3: Split Text into Nodes

Use SentenceSplitter to break down documents into manageable chunks.

chunk_overlap=20: Ensures chunks overlap slightly to avoid missing information at the boundaries

Step 4: Configure the LLM, Prompt, and GraphRAG Extractor

Set up the LLM (e.g., GPT-4). This LLM will later analyze the chunks to extract entities and relationships.

The GraphRAGExtractor uses the above LLM, a prompt template to guide the extraction process, and a parsing function to process the LLM’s output into structured data. Text chunks (called nodes) are fed into the extractor. For each chunk, the extractor sends the text to the LLM along with the prompt, which instructs the LLM to identify entities, their types, and their relationships. The response is parsed by a function (parse_fn), which extracts the entities and relationships. These are then converted into EntityNode objects (for entities) and Relation objects (for relationships), with descriptions stored as metadata. The extracted entities and relationships are saved into the text chunk’s metadata, ready for use in building knowledge graphs or performing queries.

Note: The issue in the original implementation was that the parse_fn failed to extract entities and relationships from the LLM-generated response, resulting in empty outputs for parsed entities and relationships. This occurred due to overly complex and rigid regular expressions that did not align well with the LLM response’s actual structure, particularly regarding inconsistent formatting and line breaks in the output. To address this, I have simplified the parse_fn by replacing the original regex patterns with straightforward patterns designed to match the key-value structure of the LLM response more reliably. The updated part looks like this:

The prompt template and GraphRAGExtractor class are kept as is, as follows:

Step 5: Build the Graph Index

The PropertyGraphIndex extracts entities and relationships from text using kg_extractor and stores them as nodes and edges in the GraphRAGStore.

Output:

 

Step 6: Detect Communities and Summarize

Use graspologic’s Hierarchical Leiden algorithm to detect communities and generate summaries. Communities are groups of nodes (entities) that are densely connected internally but sparsely connected to other groups. This algorithm maximizes a metric called modularity, which measures the quality of dividing a graph into communities.

Warning: Isolated nodes (nodes with no relationships) are ignored by the Leiden algorithm. This is expected when some nodes do not form meaningful connections, resulting in a warning. So, don’t panic if you encounter this.

Step 7: Query the Graph

Initialize the GraphRAGQueryEngine to query the processed data. When a query is submitted, the engine retrieves relevant community summaries from the GraphRAGStore. For each summary, it uses the LLM to generate a specific answer contextualized to the query via the generate_answer_from_summary method. These partial answers are then synthesized into a coherent final response using the aggregate_answers method, where the LLM combines multiple perspectives into a concise output.

Output:

Wrapping Up

That’s all! I hope you enjoyed reading this article. There’s no doubt that Graph RAG enables you to answer both specific factual and complex abstract questions by understanding the relationships and structures within your data. However, it’s still in its early stages and has limitations, particularly in terms of token utilization, which is significantly higher than traditional RAG. Nevertheless, it’s an important development, and I personally look forward to seeing what’s next. If you have any questions or suggestions, feel free to share them in the comments section below.

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