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APRIL 17 2025

How to build embedding pipelines for high-quality AI retrieval

Learn how to design effective embedding pipelines for AI retrieval, focusing on critical components & strategies to optimize data transformation into valuable insights.

Engineering
Engineering
Hypermode

As AI systems become more sophisticated, the quality of their answers depends less on how much they've been trained and more on how well they retrieve relevant knowledge in real time. Yet building systems that consistently surface the right information—accurately, efficiently, and at scale—remains a challenge. Not because the technology doesn't exist, but because most teams focus on embedding generation and vector storage while overlooking the full architecture required for effective retrieval.

The good news? This isn't a limitation. By designing pipelines that treat retrieval as the primary goal rather than an afterthought, we can unlock a new level of accuracy, explainability, and performance in AI applications.

In this article, you'll learn how to build embedding pipelines for high-quality AI retrieval by exploring each critical component from data ingestion to hybrid retrieval to continuous optimization and how to architect them for real-world impact.

The anatomy of an effective embedding pipeline

Embeddings are how AI systems represent meaning. Instead of understanding words the way humans do, models convert text into numbers—vectors—that capture the relationships between concepts. For example, the words "cat" and "kitten" will be close together in vector space, while "cat" and "refrigerator" will be far apart. This allows AI to search not just by exact words but by meaning.

When you ask a question, the system compares the vector of your query to the stored vectors of your content to find what's most relevant. These embeddings are what make semantic search possible, but for them to work well, the entire pipeline from how data is split to how it's retrieved, needs to be designed around delivering meaningful, accurate results.

Here's what an embedding pipeline from initial ingestion to retrieval involves:

Source connectors (data ingestion)

This first component extracts and pre-processes data from various sources. It handles:

  • Connecting to data repositories like databases, APIs, files, or live streams
  • Cleaning and normalizing the raw data
  • Applying chunking strategies to divide content into manageable fragments
  • Pre-processing text to improve embedding quality

The way you split your content dramatically affects retrieval quality. Chunking strategies must balance token limitations with maintaining context coherence. This means breaking down your data into pieces that are small enough to process efficiently but large enough to preserve meaningful context.

Embedding module

The embedding module transforms pre-processed data into vector embeddings that capture semantic meaning:

  • Converting text chunks into numerical vector representations
  • Applying models like Cohere Embed v3, E5, Nomic Embed, or SentenceTransformers
  • Ensuring consistent dimensionality and normalization
  • Preserving semantic relationships between data points

The embedding model is just one piece of the puzzle. As NVIDIA notes, quality embedding generation depends heavily on proper data preparation. These vector representations allow computers to understand the meaning and relationships between different pieces of content, essentially converting human language into a format machines can work with.

Vector stores

These specialized databases store and index embeddings for rapid retrieval:

  • Organizing vectors in formats optimized for similarity search
  • Supporting efficient indexing methods like Hierarchical Navigable Small World (HNSW) graphs or Inverted File Indexing (IVF)
  • Enabling fast nearest-neighbor lookups
  • Maintaining metadata connections to original content

Vector stores are purpose-built to handle the unique requirements of similarity search, which is fundamentally different from traditional database queries. Vector indexes and similarity search functionality are now becoming more common features supported by traditional databases as well.

Retrieval mechanism

This component performs the actual similarity searches between query embeddings and stored embeddings:

  • Converting user queries into the same embedding space
  • Executing vector similarity calculations (e.g., cosine similarity)
  • Ranking and filtering results based on relevance
  • Supporting hybrid retrieval that combines dense vector search with keyword-based methods

Building an instant vector search app can leverage these techniques to provide fast and accurate retrieval. The retrieval mechanism is what matches user questions with the most relevant information in your knowledge base. Hybrid retrieval approaches often outperform pure vector search by balancing semantic understanding with keyword precision.

Integration with language models

Retrieved data doesn't exist in isolation, it feeds into language models:

  • Providing context for LLM responses
  • Enabling Retrieval-Augmented Generation (RAG),
  • Supporting citations and references to source material

This integration allows AI systems to combine factual retrieved information with generative capabilities, creating responses that are both accurate and fluent.

Feedback loops

Sophisticated embedding pipelines incorporate mechanisms to refine performance over time:

  • Learning from user interactions and feedback
  • Adjusting chunking strategies based on retrieval success
  • Fine-tuning embedding parameters for domain-specific needs
  • Monitoring and preventing degradation over time

The quality of your retrieval depends on how well you've prepared your context—not just which embedding model you used. Building effective embedding pipelines requires careful consideration of each component and how they work together.

Designing for retrieval, not storage

When building embedding pipelines, we need to shift our focus from simply storing information to intentionally designing for retrieval. This change in approach can dramatically improve the quality and relevance of information your AI systems can access, enabling functionalities like real-time vector search.

Start with the end in mind

Good retrieval begins by understanding what questions your system needs to answer. Instead of focusing on how to store all your data, ask yourself: "What specific questions will users ask?" and "What information will help them solve their problems?" This question-first approach ensures your entire pipeline is optimized for delivering relevant answers.

By mapping out common query types and user intents before designing your system, you can make better decisions about how to structure, process, and retrieve your data.

Chunking strategies

How you break down your content into retrievable pieces significantly impacts retrieval precision. Different use cases require different chunking approaches:

  • Semantic search works best with chunks sized to contain complete ideas (often paragraphs or short sections)
  • Knowledge routing benefits from chunks that align with specific topics or categories

The DocumentSplitter technique can help optimize chunks for your specific retrieval needs. This is a method of intelligently dividing documents into context-preserving chunks—often using paragraph boundaries, sliding windows, or recursive splitting—to ensure each chunk is both semantically meaningful and optimized for retrieval. It can help you fine-tune chunk sizes and boundaries based on the structure and semantics of your content.

Consider both token limitations of your embedding models and the natural semantic boundaries in your content. Proper chunking alone can lead to dramatic improvements in retrieval precision without changing your underlying models.

Enrich with metadata and relationships

Plain text embeddings alone flatten your information and strip away valuable context. When content is reduced to raw vectors without structural cues, you lose critical signals that could otherwise guide more accurate retrieval.

To mitigate this, it's essential to enrich your content chunks with structured metadata. Attributes like creation date, author expertise, topic category, or source reliability scores add important interpretive dimensions that help your system understand not just what a chunk says, but how and when it should be prioritized.

With this added context, your retrieval system can go beyond basic semantic matching. It can filter results based on specific criteria, apply custom scoring to elevate authoritative sources, and even traverse logical relationships between data points when combined with a graph structure.

This metadata-enriched approach preserves nuance that would otherwise be lost in a flat, text-only system. It gives your AI a clearer sense of what information matters most which is based not only on meaning, but on why that meaning is relevant, timely, or trustworthy.

Preserve structure

Similarly, converting structured business data into plain text strips away essential context and relationships. When you flatten complex data—like database records, hierarchies, or linked entities—into freeform text, you lose the ability to filter by specific attributes, understand relational hierarchies, trace data provenance, or leverage existing schemas that encode business logic.

For optimal retrieval, it's crucial to maintain as much of your data's original structure as possible. Rather than reducing everything to paragraphs of text, aim to preserve the native forms in which the data carries meaning—tables, JSON, graphs, linked objects—and integrate these with your embedding pipeline.

Combining text embeddings with structured data gives your system both semantic understanding and precision filtering capabilities. This dual-layered approach helps your AI not only retrieve the right information but understand how it fits into the larger context.

When you design your system with retrieval as the primary goal, not just storage, you build a foundation for AI that delivers accurate, context-rich answers. This shift doesn't just improve response quality, it transforms how effectively your system supports real-world user needs.

Fine-tuning your embedding pipeline in practice

Small details can make a significant difference in performance. Here are some battle-tested tips that will help you build embedding pipelines for AI retrieval systems.

Store raw text alongside vectors

Always keep the original text alongside your vector embeddings. This practice isn't just about good housekeeping, it's essential for system transparency and flexibility. When you store raw text, you make debugging much easier when results don't match expectations. You can immediately validate whether the correct content is being retrieved without having to reverse-engineer from vectors alone.

This approach also enables more flexible post-processing without the computational cost of re-embedding content. If you need to adjust how information is presented or need to extract specific details from retrieved documents, having the original text ready saves significant processing time and resources. Additionally, raw text storage provides transparency when examining why certain results were returned, making your system more explainable and trustworthy.

Log queries and results

Implementing comprehensive logging of both user queries and the results they receive creates an invaluable feedback loop for continuous improvement. By capturing real user interactions, you build natural evaluation sets for testing retrieval quality against actual usage patterns rather than contrived examples.

These logs reveal common failure patterns where relevant content isn't surfaced, highlighting specific weaknesses in your embedding or retrieval approach. Over time, query logs help you understand user intent better by revealing patterns in how people phrase questions and what information they're seeking. This understanding allows you to optimize not just for technical performance but for actual user satisfaction. The logs also serve as benchmarks to measure improvements as you refine your pipeline, providing concrete evidence of progress rather than subjective assessments.

Set up continuous optimization

Embedding pipelines aren't static systems, they require ongoing refinement to maintain and improve performance. Establishing feedback mechanisms that track which retrieved documents lead to successful outcomes provides direct evidence of what's working in real-world scenarios.

Periodically reviewing and updating your chunking strategy based on retrieval patterns ensures your system evolves with changing content and query patterns. Experimental testing of new embedding models as they become available keeps your system at the cutting edge of capability. For specialized domains, consider fine-tuning embedding models on your specific content to enhance performance beyond what general-purpose models can achieve. This commitment to continuous improvement transforms your embedding pipeline from a one-time implementation into an evolving asset that grows more valuable over time.

Selecting the perfect embedding models for your use case

Your embedding model choices significantly impact your application's performance and capabilities. Let's explore how to build embedding pipelines by selecting the most effective embedding models for your specific needs.

Balancing critical tradeoffs

Several important tradeoffs will shape your embedding model selection:

  • Open-source vs. Hosted Models: Open-source models offer full control and customization, while hosted options provide convenience and ongoing improvements. Your selection should balance development resources, deployment preferences, and performance requirements.
  • Domain-specific vs. General Models: General embedding models work well across many use cases, but domain-specific models can deliver superior performance in specialized fields. For example, E5 models have shown excellent results in technical document indexing for engineering and scientific applications.
  • Size vs. Performance: Larger models (like E5-large) typically offer better semantic understanding but require more computational resources. Smaller models sacrifice some accuracy for speed and lower resource consumption. Your application's latency requirements and hardware constraints will guide this decision.

Leveraging multi-dimensional embeddings

Different embedding models capture different aspects of your data:

  • Semantic embeddings understand meaning and context
  • Syntactic embeddings focus on grammar and structure
  • Visual embeddings encode image characteristics
  • Temporal embeddings capture time-based relationships

By using multiple complementary embedding models, you can create a more comprehensive understanding of your data. For example, combining a model strong at capturing technical terminology with another excelling at general language understanding can enhance retrieval for technical support applications.

Performance considerations

Dimensionality plays a critical role in determining both the performance and efficiency of your embedding pipeline.

Higher-dimensional embeddings (typically 768 dimensions or more) tend to capture more semantic nuance and contextual information, but they come with increased demands on storage, memory, and compute resources. On the other hand, lower-dimensional embeddings, often in the range of 128 to 384 dimensions, are much faster to process and require less infrastructure, but they may sacrifice some degree of semantic richness and retrieval accuracy.

To strike a balance between quality and performance, dimensionality reduction techniques like Principal Component Analysis (PCA) can be applied. These methods compress embeddings to a more efficient size while retaining most of the meaningful variance, helping optimize for real-world constraints without significantly compromising on retrieval quality.

Choosing the right model for your use case

To select the optimal embedding model:

  1. Assess your domain requirements (general vs. specialized)
  2. Consider your computational constraints (speed vs. accuracy)
  3. Test multiple models with representative queries
  4. Measure performance using relevant metrics (precision, recall, latency)

The embedding model selection process is iterative—start with benchmark testing across several models, measure performance on your specific data, and refine your approach based on real-world results. Utilizing an AI-ready platform can accelerate this process.

How vector search and knowledge graphs transform retrieval

While embedding pipelines can be dramatically improved with chunking, metadata, and hybrid retrieval, some use cases demand an even deeper level of contextual understanding. When queries involve multiple facts, relationships, or reasoning steps, it's time to look beyond vectors alone.

Limitations of vector-only approaches

The retrieval techniques we've covered so far—embedding optimization, hybrid search, and metadata enrichment—take vector pipelines far. But they still operate within a fundamentally unstructured paradigm. For use cases that require logic, relationships, and reasoning across entities, vector search alone hits a ceiling. To break through that ceiling, we need to rethink how we structure and connect knowledge in the first place.

Pure vector search operates on proximity in high-dimensional space, which makes it excellent for finding semantically "similar" content. However, in its default form, without structured augmentation, it cannot fully understand relationships between entities, follow logical connections across multiple hops, or handle complex queries that require reasoning. It also struggles to filter by attributes or explain why specific results were returned.

When you ask a question that requires connecting multiple facts like "Which products did our top customers purchase last quarter?" a vanilla vector search engine will likely miss the mark. It can retrieve similar snippets, but it lacks the ability to traverse structured relationships or apply logic. Without additional structure or hybrid techniques, vector search treats content as isolated fragments rather than connected knowledge.

The power of graph structures

This is where knowledge graphs come in. A knowledge graph is a structured representation of information where entities (nodes) are connected by relationships (edges). Unlike vector embeddings which compress information into points in high-dimensional space, graphs make connections explicit and traversable.

Graphs enable:

  • Multi-hop reasoning: Following paths of relationships across multiple entities
  • Attribute-based filtering: Narrowing results based on specific properties
  • Contextual expansion: Broadening a query by exploring related concepts
  • Explainable results: Showing the path of reasoning used to find information

For example, when answering "Which products did our top customers purchase last quarter?" a graph can traverse from customers to purchases to products, filtering by date attributes, while a vector search would struggle with this relational query.

GraphRAG: The best of both worlds

GraphRAG (Graph-enhanced Retrieval Augmented Generation) combines the semantic power of embeddings with the structured reasoning of graphs. This hybrid approach significantly reduces hallucinations and improves response accuracy. This approach doesn't replace your vector pipeline, it extends it. GraphRAG is the connective tissue between the flexible recall of embeddings and the logical precision of graph structures.

In a GraphRAG system:

  1. Knowledge is stored in a graph structure with entity relationships explicitly defined
  2. Vector embeddings are attached to entities and relationships
  3. Queries leverage both semantic similarity and graph traversal
  4. Results maintain provenance and can explain their reasoning path

This combination enables both "find something similar to this" (vectors) and "show me how these things are connected" (graphs) capabilities in the same system.

Integration benefits

This hybrid architecture isn't just technically elegant, it solves critical problems at scale. Together, vector and graph systems can:

  • Deliver more accurate, grounded, and explainable responses; especially in regulated or high-trust domains by combining semantic similarity with structural reasoning
  • Filter results based on metadata and relationships
  • Answer complex queries requiring multiple logical steps
  • Update knowledge incrementally without retraining
  • Support auditability and traceability which is critical for compliance and maintaining source provenance
  • Scale to enterprise knowledge bases with billions of facts

For instance, if you're building a customer support AI, combining vectors with graphs allows the system to not just find similar support tickets but to understand product relationships, customer history, and solution paths. This creates a much more effective support experience, much like AI-powered semantic search solutions.

The future of AI retrieval isn't about choosing between vectors or graphs. It's about harnessing both in systems that can understand both semantic similarity and structured relationships, delivering context that works for real-world applications.

Simplify your retrieval journey with Hypermode

Building high-quality embedding pipelines doesn't have to be complex. Hypermode brings together all the capabilities discussed in this article in one unified platform designed specifically for AI retrieval excellence. By combining vector search with graph capabilities, Hypermode enables both semantic understanding and relationship-aware retrieval without the complexity of managing multiple systems.

The platform's native support for entity and relationship embeddings, integrated vector and graph storage, and comprehensive search capabilities make it ideal for organizations looking to move beyond basic vector search to more contextual, relationship-aware AI applications. With built-in observability and the Modus framework, you can start simple and evolve your retrieval systems as your needs grow.

Ready to transform your AI retrieval capabilities? Visit Hypermode to discover how our platform can help you build more intelligent, context-aware embedding pipelines that deliver the right information, every time.