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What is GraphRAG, and when does it outperform standard...
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See plansVector RAG is fundamentally a point-lookup tool — it finds semantically similar chunks, which works well for “what does X say” but breaks down for “how are X and Y related” or “summarize what the whole corpus says about Z.” GraphRAG targets exactly that gap by having an LLM extract entities and relationships from the corpus into an explicit knowledge graph, then clustering related entities into communities and generating a summary for each.
Query time then branches by question type: narrow, entity-specific questions get answered through a combination of graph traversal and vector search, while broad synthesis questions that span the whole corpus get answered from the pre-built community summaries rather than trying to retrieve and stitch together dozens of chunks live.
The catch is cost — building the graph and community structure is far more expensive to index than a standard vector store, often by an order of magnitude or more. That makes GraphRAG a deliberate choice for relationship-dense domains — legal document analysis, cross-paper research synthesis, organizational knowledge — rather than a default upgrade over standard RAG.