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What is Vector Search?

Jan Overney
Post By Jan Overney August 1, 2025

Think of all the times you've searched your company's internal documents, only to be met with a frustratingly long list of irrelevant results. Say you need to find all files listing company mergers. You type "merger" and get a hundred hits. It’s only when you look more closely that you realize that hundreds more are missing: documents about "acquisitions," "buyouts," and "consolidations" are completely absent. It's a daily battle against a search bar that just doesn't understand.

What if there was a way to make the search understand? A system that grasps context, intent, and nuance, unearthing the most relevant answers even when the words don't match. Vector search does just that. It’s the intelligent engine behind next-generation enterprise AI applications and truly smart enterprise search. While traditional keyword search often leaves critical insights buried, vector search transforms how organizations truly understand and leverage their vast, unstructured information, ensuring you find the right answers.

What is Vector Search? Understanding Semantic Power

At its heart, vector search transforms all your data – text, images, audio, video – into numerical representations called embeddings. Each embedding is like an arrow in a vast, multi-dimensional space. Data with similar meaning ends up with vectors that point in similar directions. As we'll get to, this makes them easy to identify, even if the exact words or formats differ.

Unlike old-school keyword search, which blindly hunts for exact word matches, vector search works on semantic similarity. First, your search query is transformed into a vector. Then, the system combs the vector database in search of data points whose vectors are most closely aligned in orientation. The closer the angle, the stronger the semantic match.

The result? A search that understands your intent, not just your words. Asking for "sustainable energy initiatives" won't just find that phrase; it will also surface "renewable power projects" or "green technology investments." This nuanced understanding elevates enterprise search and fuels smarter enterprise AI.

Why This Matters to Your Business: The Enterprise Advantage

Vector search delivers tangible business value:

Under the Hood: The Core Mechanics

Vector search works in three key steps for enterprise applications:

  1. Embedding: Your data (e.g., a contract, an image, a sales call transcription) is fed into a specialized AI model that converts it into a numerical "vector embedding." Similar items get similar numerical fingerprints.
  2. Indexing: These vectors are then stored and efficiently organized in a vector database. Advanced algorithms ensure rapid searches, even across billions of data points.
  3. Similarity Search: When you enter a query, your query also becomes a vector. Using cosine similarity to compare the angle between vector pairs, the system quickly finds those data vectors that are most closely aligned with the query vector, delivering semantically relevant results that go beyond simple keywords.

Vector Search: Myth vs. Reality

Myth: “Vector search is just a smarter keyword search.”
Reality: Not really. Keyword search depends on exact terms. If the words don’t match, the system won’t find them. Vector search, on the other hand, represents content as mathematical vectors that capture meaning. Instead of “Did they use the exact phrase performance claims?” the system can recognize related ideas like hypothetical illustrations or marketing projections. It’s not about smarter word matching, it’s about retrieving information by concept, making enterprise search vastly more resilient and insightful.

Myth: “Vector search is only for tech giants or specialized AI teams.”
Reality: Once true, no longer. Enterprises of any size can now harness vector search without building a massive AI stack from scratch. In practice, this means compliance teams, customer service departments, and product managers can all unlock faster, more accurate insights from unstructured data, leveraging technology that used to be out of reach outside Silicon Valley.

Myth: “Vector search is too expensive or slow for real business use.”
Reality: Advances in indexing and vector databases make it both scalable and cost-effective. Instead of combing through irrelevant keyword hits, vector search narrows retrieval to only the most semantically relevant information, reducing review time, cloud costs, and compliance risk. What once seemed computationally prohibitive is now a driver of efficiency.

Beyond the Basics with Squirro

Squirro elevates enterprise AI, delivering a fully integrated, intelligent platform engineered to consistently provide trusted and contextually rich AI outcomes across your organization.

  • Contextual Data Integration with Knowledge Graphs: The Squirro platform doesn't just embed data; it enriches it with metadata and connects it within semantic knowledge graphs. This provides crucial context for vector search, ensuring not just similarity, but also factual accuracy and logical relationships, vital for precise GraphRAG outputs.
  • Hybrid Search for Unparalleled Precision: Squirro combines the semantic power of vector search with the pinpoint accuracy of traditional keyword search and advanced filtering. This "best of both worlds" approach delivers highly relevant results for complex natural language queries, providing a superior enterprise search experience.
  • Enterprise-Grade & Secure: For sensitive enterprise data, scalability, security, and governance are paramount. Squirro's platform is built for these demanding environments, ensuring data integrity, compliance, and consistent enterprise-grade GenAI performance for all your enterprise AI initiatives.

Vector Search in Practice: Barriers to Adoption

Deploying vector search effectively in an enterprise isn't without its considerations:

  • Garbage in is still garbage out: The accuracy of your vector search (and thus your RAG and Enterprise AI) depends entirely on the quality of your input data and embedding models. Messy data leads and weak embedding models lead to poor results.
  • Scalability & Performance: Managing millions, let alone billions, of vectors and ensuring rapid searches in a high-dimensional space is no simple feat.
  • Cost of Ownership: Building and maintaining a high-performance vector search infrastructure requires specialized expertise and resources.

Our unique approach addresses these challenges by focusing on data ingestion, advanced indexing, and providing a comprehensive, managed platform that streamlines deployment and ensures continuous relevance for your enterprise search and AI needs.

The Final Word: A Cornerstone of Enterprise Intelligence

Vector search has become a foundational building block of enterprise AI. By unlocking semantic understanding, vector search powers intuitive enterprise search, refined recommendations, and, crucially, reliable and grounded generative AI applications via RAG. And by embracing its depth, your business can move beyond keyword limitations to a world where information retrieval is intuitive, insightful, and profoundly transformative.

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