AI Tech Publishing

Mar 18, 2026 · Artificial Intelligence

How Context Engineering Turns AI Agents from ‘Usable’ to ‘Highly Effective’

The article explains how organizing the prompt, tool schemas, dialogue history, and retrieved documents—collectively the context window—affects an AI agent’s decisions, introduces the concepts of Lost‑in‑the‑Middle, Thinking Tokens, tool‑response caching, compaction versus SubAgent strategies, and shows a step‑by‑step evolution that raised accuracy from 60 % to over 95 %.