The point is provenance. A model asked to recall your pricing will invent something plausible; a model handed your price list will quote it and can cite which document it came from. That difference is what makes a system usable in a regulated conversation.
In creative work RAG underwrites the claim gate. When a brand book, a grant document or a technical specification is retrievable, a claim on screen can be traced to a line in a file before it renders.
Does RAG stop hallucination?
It reduces it substantially and makes the remainder checkable, which matters more. A retrieved source can be verified; a recalled fact cannot.