The early focus on crafting the perfect prompt is obsolete. Sophisticated AI interaction is now about 'context engineering': architecting the entire environment by providing models with the right tools, data, and retrieval mechanisms to guide their reasoning process effectively.

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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.

With models like Gemini 3, the key skill is shifting from crafting hyper-specific, constrained prompts to making ambitious, multi-faceted requests. Users trained on older models tend to pare down their asks, but the latest AIs are 'pent up with creative capability' and yield better results from bigger challenges.

Simply offering the latest model is no longer a competitive advantage. True value is created in the system built around the model—the system prompts, tools, and overall scaffolding. This 'harness' is what optimizes a model's performance for specific tasks and delivers a superior user experience.

The effectiveness of agentic AI in complex domains like IT Ops hinges on "context engineering." This involves strategically selecting the right data (logs, metrics) to feed the LLM, preventing garbage-in-garbage-out, reducing costs, and avoiding hallucinations for precise, reliable answers.

Instead of asking an AI to directly build something, the more effective approach is to instruct it on *how* to solve the problem: gather references, identify best-in-class libraries, and create a framework before implementation. This means working one level of abstraction higher than the code itself.

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.

AI development has evolved to where models can be directed using human-like language. Instead of complex prompt engineering or fine-tuning, developers can provide instructions, documentation, and context in plain English to guide the AI's behavior, democratizing access to sophisticated outcomes.

The perceived limits of today's AI are not inherent to the models themselves but to our failure to build the right "agentic scaffold" around them. There's a "model capability overhang" where much more potential can be unlocked with better prompting, context engineering, and tool integrations.

The most leveraged engineering activity is creating a 'meta-prompt' that takes a simple feature request and automatically generates a detailed technical specification. This spec then serves as a high-quality prompt for an AI coding agent, making all future development faster.

While prompt engineering focuses on crafting the human message, context engineering is a broader discipline that also manages the flow of information from a potentially large number of tool calls, a key challenge in building effective agents.