What it means
Keyword search matches the words typed. Semantic search converts both the query and the documents into embeddings and finds the closest meanings. It handles synonyms, different phrasings and questions written in natural language.
Many systems combine both, called hybrid search, because exact words still matter for product codes, names and technical terms.
Why it matters for a business
Customers and staff rarely use the same words as your documents. Semantic search helps them find answers anyway, which improves help centers, internal wikis and knowledge assistants.
A business example
Things to watch
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Combine with keyword search for exact terms.
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Test with real queries from users.
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Add reranking for better top results.
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Keep the index updated when documents change.