Context engineering is crucial for agents utilizing large language models (LLMs) to effectively manage their limited context windows. It involves strategies such as writing, selecting, compressing, and isolating context to ensure agents can perform tasks efficiently without overwhelming their processing capabilities. The article discusses common challenges and approaches in context management for long-running tasks and tool interactions.

The article explores the evolution of AI system development from Large Language Models (LLMs) to Retrieval Augmented Generation (RAG), workflows, and AI Agents, using a resume-screening application as a case study. It emphasizes the importance of selecting the appropriate complexity for AI systems, focusing on reliability and the specific needs of the task rather than opting for advanced AI agents in every scenario.