Structure Over Scale: Schema-Constrained Causal Graphs for RAG

arXiv:2607.22592v1 Announce Type: new Abstract: Graph-based retrieval-augmented generation (GraphRAG) grounds answers in structured knowledge, but current systems extract entities and relationships exhaustively, producing graphs whose size and construction cost scale with corpus length rather than with the reasoning a query requires. We introduce HCG-RAG (Hierarchical Causal Graph RAG), which replaces open-ended extraction with schema-constrained causal graphs: an automated pipeline distills a corpus into a fixed, typed vocabulary of causal variables and materializes a compact two-tier graph over it. Our schema-constrained graphs match entity-relation baselines on answer quality at a fraction of the cost: 3-20x fewer nodes, 8x-135x fewer build-time LLM calls than the most LLM-intensive baseline (MS-GraphRAG), and graphs compact enough for a domain expert to audit, correct, and extend. On medical and clinical benchmarks, including a neurologist-validated epilepsy dataset, HCG-RAG matches or exceeds the best entity-relation systems. An ablation isolates the causal graph as a structured retrieval filter, contributing +6 percentage points (pp) over embedding-only retrieval. Across all domains with discoverable hierarchical causal structure, only methods imposing higher-level organization outperform flat entity-relation retrieval, indicating that what is placed in the graph matters more than how many nodes it contains.