According to God of Prompt, Graph RAG introduces hierarchical structures in enterprise AI search by organizing documents into tiers such as company policies, department rules, team guidelines, and individual documents. This approach contrasts with traditional vector search, which treats all documents equally. By prioritizing higher-level policies and leveraging lower-level documents for detailed information, Graph RAG reduces AI hallucinations and ensures more accurate, context-aware responses, especially in corporate knowledge management applications (source: @godofprompt, Jan 9, 2026).