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AI Concepts: GenAI, Agentic AI, RAG, and MCP

A comprehensive whiteboard overview of four critical AI concepts every practitioner should understand: Generative AI for content creation, Agentic AI for autonomous goal pursuit, RAG for accurate retrieval-augmented generation, and MCP for standardized context management.

Whiteboard diagram showing four AI concepts: Generative AI (creates new content), Agentic AI (autonomous goal pursuit with perceive-decide-act loop), RAG (retrieval-augmented generation workflow), and MCP (Model Context Protocol with user context, history, system state, and external data)

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Four foundational AI concepts that define modern enterprise AI systems

Key Takeaways

  • Generative AI creates novel content by learning patterns, while Agentic AI autonomously pursues goals through perception-decision-action loops
  • RAG combines retrieval and generation to improve accuracy and reduce hallucinations by grounding responses in real knowledge bases
  • MCP provides standardized context exchange between AI models and data sources, maintaining state across interactions and enhancing coherence

Context

These four concepts—Generative AI, Agentic AI, RAG, and MCP—represent the building blocks of modern enterprise AI systems. Understanding how they interrelate is essential for architecting production AI applications.

This visual emerged from repeated conversations where teams confused these concepts or failed to see how they fit together. It's designed as a reference diagram you can share in architecture reviews or planning sessions.

When to Use This Visual

Ideal for:

  • Technical architecture discussions
  • Team alignment on AI strategy
  • Training sessions for engineers moving into AI/ML roles
  • Documentation for system design

Target Audience:

  • Software engineers implementing AI features
  • Solution architects designing AI systems
  • Technical leads planning AI roadmaps
  • Product managers with technical backgrounds

Deep Dive: How These Concepts Relate

Generative AI: The Foundation

Generative AI (GenAI) is the base layer—models like GPT-4, Claude, or DALL-E that can create new content. Examples: ChatGPT for text, DALL-E for images, GitHub Copilot for code.

Key characteristic: Learns patterns from training data, then produces novel outputs that match those patterns.

Agentic AI: Adding Autonomy

Agentic AI builds on GenAI by adding autonomous goal pursuit. Instead of responding to single prompts, agents:

  1. Perceive the environment
  2. Decide what action to take
  3. Act on that decision
  4. Iterate until the goal is achieved

Example: An AI assistant that doesn't just answer "How do I deploy this?" but actually writes the deployment script, tests it, fixes errors, and deploys.

RAG: Grounding in Reality

RAG (Retrieval-Augmented Generation) solves the hallucination problem by grounding GenAI responses in real data:

  1. Query comes from the user
  2. Retrieve relevant documents from a knowledge base
  3. Augment the prompt with retrieved context
  4. Generate a response based on actual facts

Why it matters: Reduces hallucinations, provides citations, works with proprietary/recent data.

MCP: The Glue

MCP (Model Context Protocol) standardizes how AI systems access context:

  • User context (who is asking, their permissions, preferences)
  • Conversation history (maintain state across turns)
  • System state (what tools/resources are available)
  • External data (APIs, databases, documents)

Why it matters: Without MCP, every AI integration is a one-off point-to-point connection. MCP creates a standard "language" for context exchange.

How They Work Together

In a production system, you'll often use all four:

  • GenAI provides the core language/reasoning capability
  • RAG grounds responses in your enterprise knowledge
  • Agentic AI enables multi-step task execution
  • MCP standardizes how agents access data and maintain context

Related Patterns

  • Secure Enterprise RAG: Permission-aware retrieval patterns
  • Agent Orchestration: Coordinating multiple agents toward a goal
  • Context Window Engineering: Optimizing token usage with MCP

Prompt Intent

Provide a quick reference guide that explains the relationships and distinctions between key AI architectural patterns