A knowledge base is a curated collection of documents, policies, FAQs, procedures, and reference material that an AI system can search and retrieve from. It is the source of truth the agent draws on when answering questions.
An HR agent that answers employee questions about leave policy, benefits, and expense procedures — drawing from a knowledge base that is updated whenever policies change — gives consistently accurate answers. Without a well-maintained knowledge base, agents answer from general training data that is often outdated or too generic to be useful for specific organizational questions.