LatentRAG: Latent Reasoning and Retrieval for Efficient Agentic RAG
Single-step retrieval-augmented generation (RAG) provides an efficient way to incorporate external information for simple question answering tasks but struggles with complex questions. Agentic RAG extends this paradigm by replacing single-step retrieval with a multi-step process, in which the large language model (LLM) acts as a search agent that generates intermediate thoughts and subqueries to iteratively interact with the retrieval system. This iterative process incurs substantial latency due to the autoregressive generation of lengthy thoughts and subqueries. To address this limitation, we propose LatentRAG, a novel framework that shifts both reasoning and retrieval from discrete language space to continuous latent space. Unlike existing explicit methods that generate natural language thoughts or subqueries token-by-token, LatentRAG produces latent tokens for thoughts and subqueries directly from the hidden states in a single forward pass. We align LLMs with dense retrieval models in the latent space, enabling retrieval over latent subquery tokens and supporting end-to-end joint optimization. To improve transparency and encourage semantically meaningful latent representations, we incorporate a parallel latent decoding mechanism that translates latent tokens back into natural language. Extensive experiments on seven benchmark datasets show that LatentRAG achieves performance comparable to explicit agentic RAG methods while reducing inference latency by approximately 90%, substantially narrowing the latency gap with traditional single-step RAG.