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AI0-001 Implementing AI Solutions Practice Question

A developer is implementing a RAG system for legal document review. The documents are long (50-100 pages) with dense sections. They need to chunk the documents in a way that preserves semantic coherence while keeping chunks small enough for effective retrieval. Which chunking strategy is MOST appropriate?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Semantic chunking based on paragraph and section boundaries

Semantic chunking splits text at natural boundaries (e.g., paragraphs, sections) while ensuring each chunk is coherent, which is crucial for legal documents where meaning can span multiple sentences.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Hierarchical chunking with parent-child relationships

    Why it's wrong here

    Hierarchical chunking with parent-child relationships preserves document structure but fails here because the dense, lengthy legal sections (50–100 pages) require each chunk to remain small for retrieval precision; parent chunks often remain too large, defeating the goal. It is tempting because it excels in scenarios where preserving document hierarchy (e.g., chapters, clauses) is critical, such as summarising multi-section contracts.

  • Fixed-size chunking with 512 tokens and no overlap

    Why it's wrong here

    Fixed-size chunks may break in the middle of a legal clause, losing context and semantic meaning.

  • Semantic chunking based on paragraph and section boundaries

    Why this is correct

    Semantic chunking preserves the natural units of legal text, maintaining coherence and improving retrieval quality.

  • Chunking by a fixed number of sentences without considering content

    Why it's wrong here

    Sentence-based chunking may still split logical sections and is inferior to semantic boundaries for dense legal text.

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Written by Johnson Ajibi, MSc IT Security

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