arrow_back The AI Pravda
#76

CONTEXT ENGINEERING 101

There are two kinds of intelligence on Earth: human intelligence and artificial (or, rather, alien) intelligence. Both kinds of intelligence operate in the same way – they follow an old coders' rule – "garbage in -> garbage out". This is a pretty simple rule: good output requires good input. More specifically, intelligence cannot generate smart and useful material unless it has received comprehensive and detailed information.

Two months ago Tobi Lutke – CEO of Shopify, multibillionaire and car racer – posted a tweet that was viewed by 1.7 million people:

"I really like the term "context engineering" over prompt engineering. It describes the core skill better: the art of providing all the context for the task to be plausibly solvable by the LLM."

The following week, Tobi's opinion was validated by one of AI industry superstars - Andrej Karpathy - with a longer tweet, specific and self-explanatory:

"+1 for "context engineering" over "prompt engineering". People associate prompts with short task descriptions you'd give an LLM in your day-to-day use. [But]… context engineering is the delicate art and science of filling the context window with just the right information for the next step. Science because doing this right involves task descriptions and explanations, few shot examples, RAG, related (possibly multimodal) data, tools, state and history, compacting... Too little or of the wrong form and the LLM doesn't have the right context for optimal performance..."

In a nutshell, context engineering is all about carefully crafting and managing the environment and the inputs around an AI system so it can perform optimally. It's like giving the AI the right "frame" to understand problems and respond usefully, rather than just hoping it'll figure out everything on its own.

Aren't we lucky that human intelligence has been roaming planet Earth for many thousands of years and we have some experience in providing context to people, coming from the most relevant field of management. In corporate-speak these two procedures are called "recruitment" and "onboarding" and HR departments are supposed to be good at this.

The recruitment usually involves getting acquainted with a person's education and understanding their previous work experience and projects. The onboarding process includes sharing corporate policies and procedures, best practices and operation manuals.

Let's think how this human experience can be applied to AI systems. The parallels between human context setting and AI context engineering are striking and offer us a proven framework to work with.

When we hire humans, we rely heavily on their existing educational foundation. We assume they come with basic knowledge about their field, general problem-solving skills, and cultural understanding. Similarly, for AI agents, we need to establish this foundational layer - what we might call the "education layer." This involves feeding the AI comprehensive knowledge bases, domain-specific information, and fundamental principles that will serve as its baseline understanding.

The second layer in human context setting comes from previous work experience. We value candidates who have worked in similar roles or industries because they bring tested approaches and learned patterns. For AI context engineering, this translates to what we call "best practices integration." We need to provide AI agents with documented successful approaches from other organizations, industry standards, and proven methodologies. This layer gives the AI a repository of "what works" in similar situations.

The third and most crucial layer is company-specific knowledge. During onboarding, we share our unique culture, internal processes, specific tools, and organizational quirks that make our workplace different from others. For AI agents, this becomes the "organizational knowledge database" - all the internal documents, company-specific workflows, historical decisions, and institutional memory that makes the AI truly useful within our particular context.

But here's where it gets interesting - and where we might actually need to do better than traditional HR practices. While humans can fill in gaps through intuition and social learning, AI agents need explicit context engineering. We can't rely on their ability to "pick things up" through office conversations or learn unwritten rules through observation.

This means we need to formalize what has often been informal in human management. We need to document the undocumented, make explicit the implicit assumptions, and create structured context-building processes that go far beyond what we typically do for human employees. In essence, working with AI agents might actually make us better at managing humans too, by forcing us to be more deliberate and comprehensive in how we share context and knowledge.

Mikael Alemu Gorsky

Mikael Alemu is an educator and researcher, and the author of two programs: Agentic Software Engineering, on building software with AI agents, and Building AI-Native Agentic Systems, on building software that thinks.

He teaches at the Holon Institute of Technology, near Tel Aviv, where Agentic Software Engineering runs as a credit-bearing course. He is an educator and researcher.

Nine published works, 76 citations. A 350-page textbook under contract with a major academic publisher.

Teaching and programs

Agentic Software Engineering — program, preprint and textbook

The discipline of structured, auditable human-agent workflows for building software. The human frames, specifies and judges. The agent executes. Nineteen modules in four parts, built on a running project called Tribunal, a web application in which agents argue opposing sides of a case and a judge agent decides. Taught for credit at the Holon Institute of Technology.

Agentic Software Engineering curriculum

Building AI-Native Agentic Systems — program, paper and book in writing

How to build systems that hold a language model as a working component, and treat that component as what it is: stochastic, slow and metered. Fourteen modules in four parts, about seventy hours. The running project is the Observatory, a news agency that watches sources, selects what matters and publishes on a cadence.

Research and analytics

Publications — journals and proceedings

Nine works, 76 citations. Research on artificial intelligence in education, with Ilya Levin and Alexei Semenov.

The AI Pravda — LinkedIn newsletter

Critical analysis of artificial intelligence and its effect on work and society. 5,500+ subscribers. The complete archive of 103 issues (2023–2026) is published in full at mgorsky.net/theaipravda.

Subscribe to The AI Pravda on LinkedIn

Pro bono

AI for seniors — free workshop

Helping older adults use everyday AI tools. Delivered to Russian-speaking communities in Israel.

For older adults, artificial intelligence is about preserving quality of life, maintaining autonomy, and sustaining the feeling of independence that defines dignified aging. For seniors who have emigrated, AI becomes a bridge: it can translate documents, explain official letters, help compose emails in the local language, and guide users through government websites. The workshop has been delivered to Russian-speaking communities in Israel, where participants — many of them in their 70s and 80s — discovered that AI could help them read Hebrew documents and communicate with Israeli institutions.

Startup competitions — unpaid time

Judging and mentoring early-stage ventures. Helping teams clarify their value proposition, assess technical feasibility, and prepare for the realities of scaling an AI product.

AC/VC LinkedIn group — community

A group for developers and students working with coding agents. The community shares practical insights, code examples, tool comparisons, and honest assessments of what works in production.

Join the AC/VC LinkedIn group

Recent

Important Links