People struggle with AI prompts because the model lacks background on their goals and progress. The solution is 'Context Engineering': creating an environment where the AI continuously accumulates user-specific information, materials, and intent, reducing the need for constant prompt tweaking.

Structure AI context into three layers: a short global file for universal preferences, project-specific files for domain rules, and an indexed library of modular context files (e.g., business details) that the AI only loads when relevant, preventing context window bloat.

To create detailed context files about your business or personal preferences, instruct your AI to act as an interviewer. By answering its questions, you provide the raw material for the AI to then synthesize and structure into a permanent, reusable context file without writing it yourself.

When an AI's context window is nearly full, don't rely on its automatic compaction feature. Instead, proactively instruct the AI to summarize the current project state into a "process notes" file, then clear the context and have it read the summary to avoid losing key details.

Users get frustrated when AI doesn't meet expectations. The correct mental model is to treat AI as a junior teammate requiring explicit instructions, defined tools, and context provided incrementally. This approach, which Claude Skills facilitate, prevents overwhelm and leads to better outcomes.

Long, continuous AI chat threads degrade output quality as the context window fills up, making it harder for the model to recall early details. To maintain high-quality results, treat each discrete feature or task as a new chat, ensuring the agent has a clean, focused context for each job.

Long-running AI agent conversations degrade in quality as the context window fills. The best engineers combat this with "intentional compaction": they direct the agent to summarize its progress into a clean markdown file, then start a fresh session using that summary as the new, clean input. This is like rebooting the agent's short-term memory.

Moving beyond simple commands (prompt engineering) to designing the full instructional input is crucial. This "context engineering" combines system prompts, user history (memory), and external data (RAG) to create deeply personalized and stateful AI experiences.

A truly effective skill isn't created in one shot. The best practice is to treat the first version as a draft, then iteratively refine it through research, self-critique, and testing to make the AI "think like an expert, not just follow steps."