Most retrieval pipelines were built to answer one question: which document is relevant? So the default is to fetch a chunk of a few hundred tokens, often several of them, and paste them all into the prompt. Anthropic's write-up on retrieval recommends breaking a corpus into chunks "usually no more than a few hundred tokens," and that guidance has shaped how most teams chunk contextual retrieval.
That default answers a different question than the one users ask. A user asks "what was the revenue growth in Q2?" and the retriever hands back a whole section of a filing. The section contains the answer, along with twenty sentences that do not. You pay for all of it on every call, and the model spends prefill time reading all of it before it writes a single token.
Extractive answers flip the question. Instead of "which chunk do I send?" you ask "what is the smallest span that answers this question?" That is the same idea behind classical extractive question answering, where a model highlights a span in a passage rather than composing an answer extractive QA defined. The span is the unit you send. Generation still happens downstream if you want a conversational answer, but the context is small and auditable.
The trade-off is real. A span that is too small loses the context the answer depends on. A span that is misplaced sends the model the wrong text with high confidence. The rest of this article is about managing that trade-off, not avoiding it.



