The State of Retrieval-Augmented Generation in 2025 : A Strategic Framework for Decision-Making As of mid-2025, Retrieval-Augmented Generation (RAG) has definitively transitioned from a novel technique for mitigating model hallucinations to a cornerstone of the enterprise AI stack. The conversation has matured beyond simple question-answering, driven by a deeper understanding of where true value lies. The market is now defined by a set of critical strategic choices that organizations must navigate: the evolution of RAG into an agentic component, the central conflict between open-source flexibility and managed platform velocity, and the ascendant importance of data quality over marginal model improvements. Understanding this landscape is the prerequisite for making sound architectural and investment decisions. The Retrieval-Augmented Generation (RAG) market has experienced explosive growth, reaching $1.2 billion in 2024 with projections indicating a 49.1% compound annual growth rate ...