Strategy A: Naive Fixed-Size Chunking Strategy B: Smart Semantic Chunking (With Overlap) 50 chars Sentences ARBITRARY CUT OVERLAP PRESERVES CONTEXT RAW DOCUMENT The RAG pipeline retrieves data. It chunks text. Chunks need context to function properly. FIXED-SIZE SPLIT Max chars: 50 SEMANTIC SPLIT Overlap: 1 sentence CHUNK 1 The RAG pipeline retrieves data. It chu CHUNK 2 nks text. Chunks need context to... CHUNK 1 The RAG pipeline retrieves data. It chunks text. CHUNK 2 It chunks text. Chunks need context to function...