How AI semantic search with LLMs is redefining enterprise search

Bartosz Świątek

Content Writer

  • September 11, 2025

Contents

A company’s greatest asset is its institutional knowledge, yet employees spend a significant portion of their workday just searching for information. For a mid-sized company, this inefficiency translates to hundreds of thousands of dollars in wasted labor annually. The problem isn’t a lack of data; it’s a fundamental disconnect between how we think and how traditional search engines operate. Conventional search methods, rooted in brittle keyword-matching, simply can’t keep up with the nuance of human language. A simple query for “paid time off policy” often fails to retrieve a document titled “Vacation and Leave of Absence Guidelines”, forcing employees to manually sift through irrelevant results. This “semantic gap” is the primary cause of user frustration and the significant productivity losses that enterprises face.

This article will show you how to close that gap. We’re focusing on an approach to internal knowledge discovery that’s changing how companies can eliminate these hidden costs. By leveraging Large Language Models (LLMs) and a semantic search engine, we can automate and enhance enterprise search with unprecedented precision. Instead of teaching systems what keywords to look for—a method for which queries are always imprecise —we’ll show you how this technology learns the “context,” treating every query as a request for understanding, even the most nuanced ones

The problem with traditional keyword search

Modern enterprises are data-rich but information-poor. Despite significant investments in knowledge management systems, the average employee still spends a substantial portion of their day searching for information. This isn’t just an inconvenience; it’s a measurable productivity drain that impacts both revenue and innovation.

Studies from firms like IDC and McKinsey highlight this inefficiency, with some reports suggesting that knowledge workers spend up to 2.5 hours per day searching for information. For a mid-sized company, this translates to hundreds of thousands of dollars in wasted labor annually. The root cause is a fundamental disconnect between how we think and how traditional search engines operate. (Source)

A keyword-based system is inherently brittle. For instance:

  • It fails to understand context and synonyms. A search for “paid time off policy” will likely fail to retrieve a document titled “Vacation and Leave of Absence Guidelines.”
  • It struggles with ambiguity. A query for “Q3 performance” returns search results from all departments, forcing a user to manually filter through irrelevant data to find the specific financial report they need.

The system lacks the context to understand that a user’s department or role should influence the results. This semantic gap is the primary cause of user frustration and the significant productivity losses that enterprises face.

 

How does semantic search work? Vector embeddings and search architecture

At the heart of modern semantic search is the concept of a vector embedding. A vector embedding is a numerical representation of a piece of text (a word, a sentence, or an entire document) in a high-dimensional space. LLMs are not magical; they are powerful mathematical models that excel at transforming human language into these vectors.

This process involves several key steps:

  1. Text chunking: Large documents are first broken down into smaller, manageable chunks of text (e.g., paragraphs or a few sentences).
  2. Embedding generation: Each chunk is fed into a specialized embedding model, such as a Transformer-based architecture (like Sentence-BERT). This model generates a unique vector for each chunk. The critical insight here is that the model is trained to ensure that chunks with similar meanings have vectors that are numerically “close” to each other in this multi-dimensional space.
  3. Vector database indexing: These generated vectors, along with a pointer back to the original text chunk, are stored in a specialized database known as a vector database (e.g., Pinecone, Weaviate, Milvus). These databases are optimized for performing a specific type of search: Approximate Nearest Neighbor (ANN) search.
  4. Query processing: When a user enters a query, the same embedding model converts it into a vector. This query vector is then sent to the vector database, which efficiently finds the “nearest” document vectors based on their mathematical similarity.

This architecture ensures that the search is based on conceptual similarity, not keyword matching. The system finds the most relevant document chunks, regardless of the specific words used in the query. (Source)

Retrieval-augmented generation (RAG) explained

While semantic search is excellent at finding relevant information, it still typically returns a list of document chunks. To get a direct, actionable answer, we employ a technique known as Retrieval-Augmented Generation (RAG). RAG is the technological marriage of the retrieval system (semantic search) with a large language model.

The RAG process works as follows:

  1. Retrieval: The semantic search component retrieves the top N most relevant document chunks based on the user’s query. These are your “ground truth” source materials from your internal knowledge base.
  2. Augmentation: The user’s original query, along with the retrieved document chunks, is packaged and sent as a single prompt to a powerful LLM.
  3. Generation: The LLM, acting as a sophisticated summarizer and synthesizer, reads the retrieved chunks and the query. It then generates a concise, accurate, and coherent answer that is grounded in the provided source material. This generated response is not a hallucination; it is a synthesis of facts from your company’s own data.

This hybrid process is critical because it addresses the core limitations of both traditional search and general-purpose LLMs, transforming the search experience entirely. RAG’s importance lies in its ability to provide direct, actionable answers. It prevents the LLM from generating false information by grounding its response in your company’s verified data, which is a non-negotiable requirement for enterprise applications. This allows the system to provide highly specific and up-to-date answers about your internal, proprietary information – something a general LLM cannot do. Ultimately, RAG delivers a superior user experience, turning a frustrating search process into an intuitive and efficient way to get actionable insights. (Source)

Why RAG over fine-tuning?

Instead of fine-tuning an LLM on your entire dataset, which is expensive and prone to outdated information, RAG offers a more efficient and reliable solution. RAG ensures that the generated answers are always based on the most current data available in your vector database. This verifiable and transparent approach is crucial for enterprise applications where data accuracy and auditability are non-negotiable.

This is precisely the value we deliver with the Pretius AI Semantic Search solution. Unlike generic tools, our product is engineered for enterprise-grade security and connects fragmented information from various sources—like documents and databases—allowing users to ask questions in natural language and receive precise, contextual answers with the source cited. It is a powerful tool to empower your teams, streamline access to institutional knowledge, and eliminate the information silos that hinder productivity.

Implementing a Semantic Search Solution

Deploying an LLM-powered semantic search solution is a strategic endeavor that requires careful planning, as it’s more than just integrating a new piece of software. It represents a fundamental shift in how an organization manages and accesses its institutional knowledge. The success of this transition hinges on a structured, phased approach that addresses technical, operational, and security considerations from the outset. This is not a “plug-and-play” solution, but a custom-tailored system designed to unlock the specific value trapped within your company’s unique data landscape.

Data ingestion and preparation: The foundation of quality

The effectiveness of any semantic search system is directly proportional to the quality of the data it’s trained on. This is arguably the most critical and labor-intensive phase of the project. The implementation requires a strategic approach to data ingestion and preparation.

  • Understanding your data landscape: The first step is to conduct a thorough audit of your internal data sources. This involves identifying where your knowledge resides—from structured data in SQL databases to unstructured text in PDFs, Word documents, email archives, and internal wikis. A comprehensive plan must be developed to handle this diversity of formats.
  • The importance of pre-processing: Raw data is often messy. Effective pre-processing pipelines are essential for cleansing and structuring this information. This includes removing irrelevant boilerplate text, extracting clean text from scanned documents using Optical Character Recognition (OCR), and handling various file formats to ensure a consistent input for the embedding models.
  • Metadata Enrichment: Semantic search can be significantly enhanced by rich metadata. Beyond just the content, a document’s value is often defined by its context. Tagging document chunks with metadata such as the author, creation date, department, or a project ID allows the system to not only find semantically similar content but also to filter and prioritize results based on the user’s specific context.

Deployment strategy: Choosing the right model

The choice of where and how to deploy the solution is a critical decision that balances security, performance, and cost. It’s a key architectural decision that impacts every aspect of the project.

  • Fully managed cloud (SaaS): This model offers the fastest path to deployment. The provider handles all the infrastructure, maintenance, and scaling, making it an excellent choice for companies seeking to test the technology quickly or those without dedicated DevOps teams for AI.
  • Hybrid (On-premise + cloud): This approach is often a compromise for organizations with stringent data sovereignty or security requirements. It allows sensitive data to remain on-premise, while leveraging the scalability and specialized services of a cloud provider for more compute-intensive tasks, such as embedding generation.
  • Fully On-premise: For highly regulated industries or organizations with extremely sensitive data, a fully on-premise deployment is the only viable option. While this provides maximum control and security, it also requires significant investment in infrastructure and a specialized team to manage the system’s lifecycle, from deployment to maintenance and scaling.

Security and access control: Authorized information

In an enterprise context, a search system must be permission-aware. The solution must integrate with your existing Identity and Access Management (IAM) system (e.g., Active Directory, Okta) to ensure that users can only retrieve information they are authorized to see. This is often implemented at the vector database level, where document vectors are tagged with metadata that corresponds to user roles and permissions.

Advanced applications and strategic integration

The true power of an LLM-powered search solution is unlocked when it moves beyond basic query-and-response. Once the foundational system is in place, organizations can leverage its capabilities to create a more proactive and intelligent knowledge ecosystem.

Proactive knowledge delivery

Instead of waiting for a user to type a query, the system could be configured to anticipate needs. By integrating with an employee’s daily tools and calendars, the system can use contextual triggers to push relevant information. For example, a project manager opening a new task related to a specific client could automatically receive a summary of that client’s history and key project documents without having to search for them. This transition from reactive to proactive knowledge discovery significantly reduces time spent searching and ensures critical information is always at hand.

Automated insights and anomaly detection

The semantic model’s ability to understand conceptual relationships can be leveraged to analyze trends and identify anomalies within your data. The system can be set up to continuously monitor incoming data streams – such as customer support tickets, product feedback, or market reports – and flag clusters of conceptually similar issues. For instance, it could identify that a growing number of tickets are related to a specific product function, even if the tickets use different keywords. This provides early warnings of emerging problems and allows for a rapid, targeted response.

Integration with workflows

The true power of this technology is realized when it is embedded directly into an employee’s existing workflows. This is achieved through APIs that allow the search engine to be called from within other enterprise applications. A sales professional working in a CRM could get instant, context-aware information from the internal knowledge base while drafting an email. Similarly, a developer could receive relevant documentation or code snippets directly within their code editor, eliminating the need to break their focus and switch applications.

Multimodal search

The technology could be extended beyond text to include non-textual data. By using multimodal embedding models, the system can represent images, audio, and video in the same vector space as text. This allows a user to ask a query like “find the product manual’s diagram that shows how to install the battery” and receive a direct image result, or to search through a video transcript for a specific technical instruction. This capability turns all of a company’s data into a single, comprehensive, and searchable resource.

The Pretius AI Semantic Search Solution

Pretius AI Semantic Search is a solution designed to provide secure, AI-powered access to a company’s internal knowledge. Unlike generic tools, it connects fragmented information from various sources, such as documents and databases, allowing users to ask questions in natural language and receive precise, contextual answers with the source cited.

Key takeaways:

  • Security and Control: The solution features enterprise-grade security, ensuring data stays within the company’s infrastructure and is not sent to external AI models. It includes built-in role-based access control, so users only see information they are authorized to view.
  • Accuracy: The product boasts a high level of accuracy, starting at 85-90% and increasing to over 95% after fine-tuning.
  • Flexibility and Integration: It is a highly flexible solution, offering seamless integration with existing systems and compatibility with various cloud environments (OCI, AWS, Azure) as well as on-premise infrastructure.
  • Practical Applications: The solution eliminates information silos, speeds up decision-making, and empowers employees with AI-driven answers. It is used in various departments, including HR, sales, procurement, and customer service.

Conclusion

 LLM-powered semantic search is a solution that fundamentally changes how you work with company data. Instead of manually searching documents using keywords, the system understands the context and intent of your queries. This allows you to ask questions in natural language and receive direct, precise answers, not just a list of potentially matching files. This technology helps you find the information you need much faster, which translates to greater productivity.

It also allows you to make better decisions by connecting data from various sources to provide a more complete picture of the situation. Ultimately, you move from passively collecting documents to actively utilizing company knowledge. In short, this tool transforms frustrating searches into an intuitive process, making you more effective and giving you an advantage in a dynamic business environment.

The Pretius AI Semantic Search Solution is designed to provide secure, AI-powered access to a company’s internal knowledge. It connects fragmented information from various sources, allowing users to ask questions in natural language and receive precise, contextual answers with the source cited. It is a powerful tool to empower your teams, streamline access to institutional knowledge, and eliminate the information silos that hinder productivity.

FAQs

  1. What is the main problem with traditional enterprise search?

 

The main problem is a fundamental disconnect between how we think and how traditional search engines operate. Traditional methods are rooted in brittle keyword-matching and cannot keep up with the nuance of human language. This creates a “semantic gap” that is the primary cause of user frustration and the significant productivity losses that enterprises face.

 

  1. What is Retrieval-Augmented Generation (RAG)?

 

RAG is a technique that is the “technological marriage of the retrieval system (semantic search) with a large language model”. It works by first retrieving the top N most relevant document chunks from a company’s internal knowledge base. These chunks, along with the user’s query, are then sent as a single prompt to a powerful LLM. The LLM reads the retrieved chunks and the query, then generates a concise, accurate, and coherent answer that is grounded in the provided source material.

 

  1. Why choose RAG over fine-tuning an LLM?

 

 Instead of fine-tuning an LLM on your entire dataset, which is expensive and prone to outdated information, RAG offers a more efficient and reliable solution. RAG ensures that the generated answers are always based on the most current data available in your vector database. This verifiable and transparent approach is crucial for enterprise applications where data accuracy and auditability are non-negotiable.

 

  1. What kind of data can the system handle?

 

The system can handle a wide variety of data formats, from structured data in SQL databases to unstructured text in PDFs, Word documents, and internal wikis. By using multimodal embedding models, the technology can also be extended beyond text to include non-textual data such as images, audio, and video.

 

  1. What are the different deployment options for the Pretius solution?

 

The choice of where and how to deploy the solution is a critical decision that balances security, performance, and cost. The fully managed cloud (SaaS) model offers the fastest path to deployment, with the provider handling all the infrastructure and scaling. For organizations with stringent data sovereignty or security requirements, a hybrid approach allows sensitive data to remain on-premise while leveraging the scalability of the cloud. Finally, for highly regulated industries or those with extremely sensitive data, a fully on-premise deployment provides maximum control and security.

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