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TERAG: Token-Efficient Graph-Based Retrieval-Augmented Generation

Qiao Xiao, Hong Ting Tsang, Jiaxin Bai

TL;DR

This work proposes TERAG, a simple yet effective framework designed to build informative graphs at a significantly lower cost, and incorporates Personalized PageRank (PPR) during the retrieval phase, and achieves at least 80% of the accuracy of widely used graph-based RAG methods while consuming only 3%-11% of the output tokens.

Abstract

Graph-based Retrieval-augmented generation (RAG) has become a widely studied approach for improving the reasoning, accuracy, and factuality of Large Language Models (LLMs). However, many existing graph-based RAG systems overlook the high cost associated with LLM token usage during graph construction, hindering large-scale adoption. To address this, we propose TERAG, a simple yet effective framework designed to build informative graphs at a significantly lower cost. Inspired by HippoRAG, we incorporate Personalized PageRank (PPR) during the retrieval phase, and we achieve at least 80% of the accuracy of widely used graph-based RAG methods while consuming only 3%-11% of the output tokens. With its low token footprint and efficient construction pipeline, TERAG is well-suited for large-scale and cost-sensitive deployment scenarios.

TERAG: Token-Efficient Graph-Based Retrieval-Augmented Generation

TL;DR

This work proposes TERAG, a simple yet effective framework designed to build informative graphs at a significantly lower cost, and incorporates Personalized PageRank (PPR) during the retrieval phase, and achieves at least 80% of the accuracy of widely used graph-based RAG methods while consuming only 3%-11% of the output tokens.

Abstract

Graph-based Retrieval-augmented generation (RAG) has become a widely studied approach for improving the reasoning, accuracy, and factuality of Large Language Models (LLMs). However, many existing graph-based RAG systems overlook the high cost associated with LLM token usage during graph construction, hindering large-scale adoption. To address this, we propose TERAG, a simple yet effective framework designed to build informative graphs at a significantly lower cost. Inspired by HippoRAG, we incorporate Personalized PageRank (PPR) during the retrieval phase, and we achieve at least 80% of the accuracy of widely used graph-based RAG methods while consuming only 3%-11% of the output tokens. With its low token footprint and efficient construction pipeline, TERAG is well-suited for large-scale and cost-sensitive deployment scenarios.

Paper Structure

This paper contains 35 sections, 9 equations, 3 figures, 5 tables.

Figures (3)

  • Figure 1: Overall pipeline of the proposed TERAG framework. The process consists of lightweight concept extraction with LLMs, followed by efficient non-LLM clustering and graph construction.
  • Figure 2: Graph structure of TERAG. The figure illustrates how lightweight concept extraction with LLMs, followed by non-LLM clustering and graph construction, leads to an efficient knowledge graph.
  • Figure 3: Accuracy versus output token consumption on the 2Wiki dataset. The upper-right region indicates higher accuracy with lower token consumption.