Most chatbots fail for one simple reason: they ignore what's actually happening with the user. Imagine asking for help while browsing your account page, but the bot replies with a generic FAQ. It's frustrating because it ignores details like where you are in the app, what plan you're on, or what you just did. That's where context comes in. When a chatbot understands those details, it stops feeling like an obstacle and starts acting like a real assistant.
Fine-tuning provides consistent and fast responses, but requires lengthy retraining for updates, while RAG offers instant updates but involves handling latency and interface challenges.
The allure of large context windows in AI models promises vast data handling and perfect recall, but reality often diverges from these enticing features.
