<ul><li>Cache-Augmented Generation (CAG) is a revolutionary approach that optimizes data retrieval and generation tasks.</li><li>CAG implements an intelligent caching mechanism to optimize computational resources.</li><li>It creates an internal, dynamic memory system that learns and adapts, unlike Retrieval-Augmented Generation (RAG) which relies on external knowledge bases.</li><li>Implementing CAG requires considerations of memory management, cache invalidation, and response diversity.</li></ul>

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