Knowledge Graphs for AI Agents: Structured Memory with Entities and Relations

Why Knowledge Graphs for Agent Memory?

Vector stores excel at finding semantically similar text, but they lose structural relationships. If an agent stores "Alice manages the engineering team" and "The engineering team is building Project X," a vector search for "Who is responsible for Project X?" might not connect these two facts. A knowledge graph stores explicit relationships between entities — Alice MANAGES Engineering, Engineering BUILDS Project X — enabling multi-hop reasoning that flat memory cannot.

Knowledge graphs represent information as a network of entities (nodes) connected by typed relationships (edges). This structure mirrors how knowledge naturally relates: people belong to teams, teams own projects, projects have deadlines.

Defining the Graph Structure

Start with a simple in-memory graph that stores entities and their relationships.

flowchart TD
    START["Knowledge Graphs for AI Agents: Structured Memory…"] --> A
    A["Why Knowledge Graphs for Agent Memory?"]
    A --> B
    B["Defining the Graph Structure"]
    B --> C
    C["Extracting Entities and Relations from …"]
    C --> D
    D["Querying the Graph for Agent Context"]
    D --> E
    E["FAQ"]
    E --> DONE["Key Takeaways"]
    style START fill:#4f46e5,stroke:#4338ca,color:#fff
    style DONE fill:#059669,stroke:#047857,color:#fff

from dataclasses import dataclass, field
from typing import Dict, List, Set, Optional, Tuple
from datetime import datetime

@dataclass
class Entity:
    name: str
    entity_type: str  # "person", "team", "project", "concept"
    properties: Dict[str, str] = field(default_factory=dict)
    created_at: datetime = field(default_factory=datetime.utcnow)

@dataclass
class Relation:
    source: str       # entity name
    relation_type: str  # "MANAGES", "WORKS_ON", "DEPENDS_ON"
    target: str       # entity name
    properties: Dict[str, str] = field(default_factory=dict)
    confidence: float = 1.0
    created_at: datetime = field(default_factory=datetime.utcnow)

class KnowledgeGraph:
    def __init__(self):
        self.entities: Dict[str, Entity] = {}
        self.relations: List[Relation] = []

    def add_entity(self, name: str, entity_type: str, **properties) -> Entity:
        if name in self.entities:
            # Update existing entity with new properties
            self.entities[name].properties.update(properties)
            return self.entities[name]
        entity = Entity(name=name, entity_type=entity_type, properties=properties)
        self.entities[name] = entity
        return entity

    def add_relation(
        self, source: str, relation_type: str, target: str,
        confidence: float = 1.0, **properties
    ) -> Relation:
        # Ensure both entities exist
        if source not in self.entities:
            self.add_entity(source, "unknown")
        if target not in self.entities:
            self.add_entity(target, "unknown")

        # Avoid duplicate relations
        for r in self.relations:
            if r.source == source and r.relation_type == relation_type and r.target == target:
                r.confidence = max(r.confidence, confidence)
                r.properties.update(properties)
                return r

        relation = Relation(
            source=source, relation_type=relation_type, target=target,
            confidence=confidence, properties=properties,
        )
        self.relations.append(relation)
        return relation

    def get_neighbors(self, entity_name: str, direction: str = "both") -> List[Relation]:
        """Get all relations involving an entity."""
        results = []
        for r in self.relations:
            if direction in ("out", "both") and r.source == entity_name:
                results.append(r)
            if direction in ("in", "both") and r.target == entity_name:
                results.append(r)
        return results

    def find_path(
        self, start: str, end: str, max_depth: int = 4
    ) -> Optional[List[Relation]]:
        """BFS to find the shortest path between two entities."""
        if start not in self.entities or end not in self.entities:
            return None

        queue: List[Tuple[str, List[Relation]]] = [(start, [])]
        visited: Set[str] = {start}

        while queue:
            current, path = queue.pop(0)
            if current == end:
                return path

            if len(path) >= max_depth:
                continue

            for rel in self.get_neighbors(current, direction="out"):
                next_node = rel.target
                if next_node not in visited:
                    visited.add(next_node)
                    queue.append((next_node, path + [rel]))

        return None

Extracting Entities and Relations from Text

Use the LLM to parse unstructured text into graph triples.

import openai
import json

client = openai.OpenAI()

def extract_graph_triples(text: str) -> List[Dict]:
    """Extract entities and relationships from text using an LLM."""
    response = client.chat.completions.create(
        model="gpt-4o-mini",
        messages=[{
            "role": "system",
            "content": (
                "Extract entities and relationships from the text. "
                "Return JSON with 'entities' (list of {name, type}) "
                "and 'relations' (list of {source, relation, target}). "
                "Use UPPER_CASE for relation types."
            ),
        }, {
            "role": "user",
            "content": text,
        }],
        response_format={"type": "json_object"},
        max_tokens=500,
    )

    return json.loads(response.choices[0].message.content)

def update_graph_from_text(graph: KnowledgeGraph, text: str):
    """Parse text and add extracted knowledge to the graph."""
    extracted = extract_graph_triples(text)

    for ent in extracted.get("entities", []):
        graph.add_entity(ent["name"], ent.get("type", "unknown"))

    for rel in extracted.get("relations", []):
        graph.add_relation(rel["source"], rel["relation"], rel["target"])

# Example
graph = KnowledgeGraph()
update_graph_from_text(graph, (
    "Alice manages the backend team. The backend team is building "
    "the payment service. The payment service depends on Stripe API."
))

# Now we can query: Who is connected to the payment service?
neighbors = graph.get_neighbors("payment service")
# Returns: backend team BUILDS payment service, payment service DEPENDS_ON Stripe API

Querying the Graph for Agent Context

When the agent receives a question, extract the relevant entities and pull their neighborhood from the graph.

def build_graph_context(graph: KnowledgeGraph, query: str, depth: int = 2) -> str:
    """Build a context string from graph data relevant to a query."""
    # Extract entities mentioned in the query
    extracted = extract_graph_triples(query)
    entity_names = [e["name"] for e in extracted.get("entities", [])]

    relevant_relations = []
    visited_entities = set()

    def explore(entity_name: str, current_depth: int):
        if current_depth > depth or entity_name in visited_entities:
            return
        visited_entities.add(entity_name)
        for rel in graph.get_neighbors(entity_name):
            relevant_relations.append(rel)
            next_entity = (
                rel.target if rel.source == entity_name else rel.source
            )
            explore(next_entity, current_depth + 1)

    for name in entity_names:
        if name in graph.entities:
            explore(name, 0)

    if not relevant_relations:
        return ""

    lines = ["Relevant knowledge from memory:"]
    for rel in relevant_relations:
        lines.append(f"- {rel.source} {rel.relation_type} {rel.target}")
    return "\n".join(lines)

This approach lets the agent answer complex questions like "Who is ultimately responsible for the Stripe integration?" by traversing the chain: Alice MANAGES backend team, backend team BUILDS payment service, payment service DEPENDS_ON Stripe API.

FAQ

When should I use a knowledge graph instead of a vector store?

Use a knowledge graph when your agent needs to reason about relationships between entities — organizational structures, dependency chains, causal links. Use a vector store when you need to find semantically similar text passages. Many production systems use both: a vector store for retrieval and a knowledge graph for reasoning.

Do I need a dedicated graph database like Neo4j?

For prototypes and agents with fewer than 10,000 entities, the in-memory Python implementation above works well. For production systems with large graphs, use Neo4j, Amazon Neptune, or even PostgreSQL with recursive CTEs. The query performance and built-in graph algorithms justify the infrastructure cost at scale.

How do I handle conflicting information in the graph?

Add a confidence score and timestamp to each relation. When conflicting facts arrive, keep both but mark the older one with lower confidence. When querying, prefer high-confidence and recent relations. You can also add a "CONTRADICTS" relation type to explicitly model conflicts.

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