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Building a RAG Application From the Ground Up
New
Rating: 3.1 out of 5(2 ratings)
53 students

Building a RAG Application From the Ground Up

Use Python and Docker Model Runner to Implement RAG Locally
Created byRebecca Peltz
Last updated 6/2026
English
English [Auto],

What you'll learn

  • Explain the RAG query and data ingestion pipelines.
  • Trace a query through retrieval and reranking to produce context for the question.
  • Run a local RAG system using Docker Model Runner with an understanding of the benefits of running AI locally.
  • Evaluate the tradeoffs of local vs. cloud RAG with respect to hardware and software requirements.
  • Define RAG: Retrieval Augmented Generation is a methodology for making personal data available to a large language model.

Course content

5 sections12 lectures1h 44m total length
  • RAG Concepts and Architecture12:00

    This lecture provides a basic understanding of what RAG  (Retrieval Augmented Generation), how it's created and how it benefits the user.  As you move through this course, you'll appreciate having a local Large Language Model that retrieves and servers up your local data in a query response.

  • Memory Requirements for Running Docker AI Models on Local Computer0:09

    This short video is a callout to let you know that you will need at least 16GB of memory to host the two models that are used in Docker Model Runner.

  • Demo (setup): Create Virtual Environment using Python version 3.136:21

    Demo to help with setting up a Python virtual environment using Python version 3.13.

  • Demo (setup): Docker Model Runner10:34

    Demo to help with installing Docker and running local models that will be used to create RAG.

  • Introduction to RAG

Requirements

  • Basic Python programming experience including how to create a virtual environment from the command line or in Pycharm.
  • Basic understanding of querying AI using prompts.
  • Ability to pull and run containerized AI models locally using Docker, without requiring cloud services or API keys. No prior Docker experience required — a hands-on introduction will be provided.
  • Basic understanding of the use of external libraries in Python code.

Description

This course teaches the how and why of Retrieval Augmented Generation (RAG) - a technique that connects private local data to a large language model.  Students will build and run a fully local RAG system using Docker Model Runner, LangChain and FAISS, gaining hands-on experience with both he data ingestion pipeline and the query pipeline including retrieval and reranking.

This course is designed for developers, data practitioners, and curious professions who are comfortable writing Python and want to move beyond chat bot prompt based interactions.   This course will be beneficial if you're interested in understanding how AI systems work, specifically how you can host local user data and make it available as context to a local LLM.  You'll write your own user interface that provides the prompt for local queries than can use your personal data.  The skills you gain are applicable to building private, cost-effective AI tools that run entirely on your own machine, making this course especially valuable to those working with sensitive data or in environments where cloud AI services are not practical or permitted.

Students will also learn how to work with the Docker application's Docker Model Runner (DMR).  DMR will allow you to run local LLMs and models that can build numeric vectors which allow you to integrate "chunked" user data with the LLM.


Who this course is for:

  • This course is designed for developers, data practitioners, and technically curious professionals who are comfortable writing Python and want to move beyond prompt-based AI interactions.
  • You'll get the most from this course if you're interested in understanding how AI systems work under the hood — specifically how your own data can be used to ground AI responses.
  • The skills you'll gain are directly applicable to building private, cost-effective AI tools that run entirely on your own machine, making this course especially valuable for those working with sensitive data or in environments where cloud AI services are not practical or permitted.