---
title: "LLM vs RAG vs Agent. What are the differences?"
source: Panaversity Learn Agentic AI
source_url: https://github.com/panaversity/learn-agentic-ai
licence: Apache-2.0
domain: agentic-ai
subdomain: panaversity-agentic
date_added: 2026-04-25
---

# LLM vs RAG vs Agent. What are the differences?

𝗟𝗟𝗠

Trained on vast datasets. It uses an input prompt to generate an answer. Use it in a simple Q&A application.

𝗥𝗔𝗚

Retrieval Augmented Generation. Uses external data (e.g. company's financial statement) to answer questions. Reduces hallucinations.

𝗔𝗴𝗲𝗻𝘁 

Can think autonomously. Given a task, LLM plans a sequence of actions, remembers chat history, and uses tools to make a decision.

![image](compare.jpeg)

When do you use which? Depends on the application.

⤷ For simple Q&A of general facts, use LLM only

⤷ For Q&A with company data, use RAG

⤷ For complex decisions and answers, use Agent

Reference:

https://www.linkedin.com/posts/danleedata_llm-vs-rag-vs-agent-what-are-the-differences-activity-7270799207630782464-hIV2
