Why Context Engineering Matters More Than Prompt Engineering

Author(s): MKWriteshere

Originally published on Towards AI.

Master the emerging discipline that’s becoming the #1 skill for AI developers building production agents

Your AI agent just burned through 500,000 tokens in a single session. The bill hit several dollars. The performance degraded with each tool call.

The article discusses the critical shift from traditional prompt engineering to context engineering in the development of AI agents. It emphasizes the importance of managing context effectively as AI agents engage in longer, more complex conversations. Key strategies for implementing context engineering include compressing context, building effective memory systems, and isolating context to maintain focus and prevent information overload. The author provides concrete examples and frameworks for optimizing AI performance through thoughtful context management, while also highlighting the evolving nature of the field and the importance of continuous learning and adaptation.

Read the full blog for free on Medium.

Join thousands of data leaders on the AI newsletter. Join over 80,000 subscribers and keep up to date with the latest developments in AI. From research to projects and ideas. If you are building an AI startup, an AI-related product, or a service, we invite you to consider becoming a sponsor.

Published via Towards AI