As enterprises increasingly leverage generative AI, mastering the skill of chunking has become crucial for optimizing retrieval-augmented generation (RAG) systems. Chunking involves breaking down large documents into smaller, context-rich chunks, improving AI systems' ability to process and retrieve relevant information. This process typically occurs during pre-processing and enhances the quality of embeddings, crucial for RAG systems' performance. Organizations should carefully consider chunk size to balance retrieval precision and efficiency. The size of the context window—the maximum text a model can process—plays a significant role in determining accuracy and relevance. Different chunking methods, such as fixed size, sentence-level, and sliding window approaches, cater to various data types and use cases. For structured documents like tables, chunking must preserve semantic connections between entries and headers. Tools like Unstructured, LangChain, and LlamaIndex facilitate efficient chunking by handling various data structures. Optimizing chunking strategies involves continuous testing, using metrics such as Recall@k, Precision@k, and Mean Average Precision (MAP) to assess performance and refine techniques. While achieving perfect chunking is challenging, the right strategies and tools can make the task manageable, enhancing the scalability and effectiveness of enterprise AI systems.