What is Context Engineering and why is it critical for AI agents?

Context Engineering determines which information an agent receives at which point in time. An agent is only as good as its context: which documents does it see? Which system data flows in? Which instructions apply?

Context Engineering is the deliberate design of this information space. It determines response quality, hallucination rate, and decision-making capability. Unlike Prompt Engineering, it is not about a single input but about the agent's entire information model.

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