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Conventional RAG Falls Short with Enterprise Databases

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    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2024/07/solutons.png) Massimo Pezzini, Gartner Analyst Emeritus  ](https://go.gigaspaces.com/5-top-use-cases-for-driving-business-with-data-hub-architecture)

5 Top Use Cases For Driving Business With Data Hub Architecture 

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      * [Asked & Answered in Natural Language](https://www.gigaspaces.com/how-it-works/asked-answered-natural-language)
      * [Multiple Data Sources](https://www.gigaspaces.com/how-it-works/supported-data-sources)
      * [Proactive AI Governance](https://www.gigaspaces.com/how-it-works/proactive-ai-governance)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/How-it-works-menu.jpg)](https://go.gigaspaces.com/effective-ai-governance-wp)

Ensure GenAI compliance and governance 

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      * [Procurement](https://www.gigaspaces.com/use-cases/procurement-supply-chain)
      * [Operations](https://www.gigaspaces.com/use-cases/enhancing-pharmaceutical-operations)
      * [Budget Management](https://www.gigaspaces.com/use-cases/educational-organizations-budget-resources)
      * [Sales Operations](https://www.gigaspaces.com/use-cases/retail-boost-sales)
      * [Service Providers](https://www.gigaspaces.com/use-cases/contract-control-cost-savings)
      * [Utilities Management](https://www.gigaspaces.com/use-cases/cut-sla-penalties)
      * [Restaurant Management](https://www.gigaspaces.com/use-cases/power-smarter-restaurant-growth-erag)
    * By Industry

      * [Logistics](https://www.gigaspaces.com/case-studies/optimizing-supply-chain-with-ai-powered-insights)
      * [Pharma](https://www.gigaspaces.com/case-studies/transforming-patient-outcomes)
      * [Education](https://www.gigaspaces.com/case-studies/achieving-educational-budget-control)
      * [Retail](https://www.gigaspaces.com/case-studies/retail-intelligence-with-erag)
      * [Shipping](https://www.gigaspaces.com/case-studies/redefining-global-logistics)
      * [Energy](https://www.gigaspaces.com/case-studies/boosting-operations-reducing-penalties)
      * [Hospitality](https://www.gigaspaces.com/case-studies/restaurant-increase-profit-erag)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Company-menu-thumb.jpg)](https://go.gigaspaces.com/webinarod/ecurely-unlocking-structured-data-for-enterprise-ai-0)

Monkey See, AI Do - All about CUA

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    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Resources-menu-thumb.jpg)](https://www.gigaspaces.com/blog/from-rag-to-tag)

Taking the AI leap from RAG to TAG

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GigaSpaces, IBM & AWS make AI safer

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    * Our Products

      * [eRAG](https://www.gigaspaces.com/products/erag)
        * [GenAI Catalyst](https://www.gigaspaces.com/products/genai-catalyst)
        * [Instant Data](https://www.gigaspaces.com/products/instant-data)
        * [Respond Proactively](https://www.gigaspaces.com/products/proactive-ai)
        * [Act Autonomously](https://www.gigaspaces.com/products/data-autonomy)
      * [Smart DIH](https://www.gigaspaces.com/products/smart-digital-integration-hub-lobby)
      * [XAP](https://www.gigaspaces.com/products/xap-imdg)
    * Solutions for

      * [Pharma](https://www.gigaspaces.com/products/erag/pharma)
      * [Procurement](https://www.gigaspaces.com/products/erag/procurement)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Product-menu-thumb.jpg)](https://go.gigaspaces.com/webinar/why-conventional-rag-falls-short)

Conventional RAG Falls Short with Enterprise Databases

[Watch the Webinar![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://go.gigaspaces.com/webinar/why-conventional-rag-falls-short)

  * Solutions![](https://www.gigaspaces.com/wp-content/uploads/2022/11/Path-16484.svg)

    * Business Solutions

      * [Digital Innovation Over Legacy Systems](https://www.gigaspaces.com/use-cases/digital-innovation-acceleration)
      * [Integration Data Hub](https://www.gigaspaces.com/technology/integration-data-hub)
      * [API Scaling](https://www.gigaspaces.com/use-cases/application-acceleration)
      * [Hybrid / Multi-cloud Integration](https://www.gigaspaces.com/use-cases/hybrid-or-multi-cloud-integration)
      * [Customer 360](https://www.gigaspaces.com/use-cases/customer-360)
      * Industry Solutions
      * [Retail](https://www.gigaspaces.com/retail-and-ecommerce-2)
      * [Financial Services](https://www.gigaspaces.com/financial-services)
      * [Insurance Companies](https://www.gigaspaces.com/industry-solutions/insurance)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2024/07/solutons.png) Massimo Pezzini, Gartner Analyst Emeritus  ](https://go.gigaspaces.com/5-top-use-cases-for-driving-business-with-data-hub-architecture)

5 Top Use Cases For Driving Business With Data Hub Architecture 

[Watch the Webinar![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://go.gigaspaces.com/5-top-use-cases-for-driving-business-with-data-hub-architecture)

  * How it Works![](https://www.gigaspaces.com/wp-content/uploads/2022/11/Path-16484.svg)

    * [eRAG Technology Overview](/how-it-works/erag-how-it-works)

      * [AI-Ready, IT-Friendly](https://www.gigaspaces.com/products/ai-ready)
      * [Semantic Reasoning](https://www.gigaspaces.com/how-it-works/semantic-reasoning)
      * [Questions to SQL Queries](https://www.gigaspaces.com/how-it-works/questions-into-sql-queries)
      * [Asked & Answered in Natural Language](https://www.gigaspaces.com/how-it-works/asked-answered-natural-language)
      * [Multiple Data Sources](https://www.gigaspaces.com/how-it-works/supported-data-sources)
      * [Proactive AI Governance](https://www.gigaspaces.com/how-it-works/proactive-ai-governance)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/How-it-works-menu.jpg)](https://go.gigaspaces.com/effective-ai-governance-wp)

Ensure GenAI compliance and governance 

[Read the Whitepaper![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://go.gigaspaces.com/effective-ai-governance-wp)

  * [Success Stories![](https://www.gigaspaces.com/wp-content/uploads/2022/11/Path-16484.svg)](https://www.gigaspaces.com/case-studies)

    * By Use Case

      * [Procurement](https://www.gigaspaces.com/use-cases/procurement-supply-chain)
      * [Operations](https://www.gigaspaces.com/use-cases/enhancing-pharmaceutical-operations)
      * [Budget Management](https://www.gigaspaces.com/use-cases/educational-organizations-budget-resources)
      * [Sales Operations](https://www.gigaspaces.com/use-cases/retail-boost-sales)
      * [Service Providers](https://www.gigaspaces.com/use-cases/contract-control-cost-savings)
      * [Utilities Management](https://www.gigaspaces.com/use-cases/cut-sla-penalties)
      * [Restaurant Management](https://www.gigaspaces.com/use-cases/power-smarter-restaurant-growth-erag)
    * By Industry

      * [Logistics](https://www.gigaspaces.com/case-studies/optimizing-supply-chain-with-ai-powered-insights)
      * [Pharma](https://www.gigaspaces.com/case-studies/transforming-patient-outcomes)
      * [Education](https://www.gigaspaces.com/case-studies/achieving-educational-budget-control)
      * [Retail](https://www.gigaspaces.com/case-studies/retail-intelligence-with-erag)
      * [Shipping](https://www.gigaspaces.com/case-studies/redefining-global-logistics)
      * [Energy](https://www.gigaspaces.com/case-studies/boosting-operations-reducing-penalties)
      * [Hospitality](https://www.gigaspaces.com/case-studies/restaurant-increase-profit-erag)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Company-menu-thumb.jpg)](https://go.gigaspaces.com/webinarod/ecurely-unlocking-structured-data-for-enterprise-ai-0)

Monkey See, AI Do - All about CUA

[Watch Webinar![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://go.gigaspaces.com/webinarod/ecurely-unlocking-structured-data-for-enterprise-ai-0)

  * Resources![](https://www.gigaspaces.com/wp-content/uploads/2022/11/Path-16484.svg)

    * Content Hub

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      * [Webinars](https://www.gigaspaces.com/resources/webinars)
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    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Resources-menu-thumb.jpg)](https://www.gigaspaces.com/blog/from-rag-to-tag)

Taking the AI leap from RAG to TAG

[Read the Blog![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://www.gigaspaces.com/blog/from-rag-to-tag)

  * Company![](https://www.gigaspaces.com/wp-content/uploads/2022/11/Path-16484.svg)

    * Our Company

      * [About](https://www.gigaspaces.com/about)
      * [Customers](https://www.gigaspaces.com/customers)
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      * [Careers](https://www.gigaspaces.com/career-lobby)
    * col2

      * [Partners](https://www.gigaspaces.com/partners-lobby)
      * [OEM Partners](https://www.gigaspaces.com/partners-lobby/oem)
      * [System Integrators](https://www.gigaspaces.com/partners-lobby/system-integrators)
      * [Technology Partners](https://www.gigaspaces.com/partners-lobby/technology)
      * [Value Added Resellers](https://www.gigaspaces.com/partners-lobby/value-added-resellers)
      * Support & Services
      * [Services](https://www.gigaspaces.com/service-overview)
      * [Support](https://www.gigaspaces.com/support-lobby)
    * [![vid-icon](https://www.gigaspaces.com/wp-content/uploads/2025/02/Company-menu-thumb.jpg)](https://www.gigaspaces.com/news/gigaspaces-partners-with-ibm-and-aws-to-deliver-accurate-safe-genai-with-dbs)

GigaSpaces, IBM & AWS make AI safer

[Read How![icon](/wp-content/uploads/2023/04/Group-30743.png)](https://www.gigaspaces.com/news/gigaspaces-partners-with-ibm-and-aws-to-deliver-accurate-safe-genai-with-dbs)

  * [Book a Demo](https://www.gigaspaces.com/book-a-demo)



  * Products
    * Our Products
      * [eRAG](https://www.gigaspaces.com/products/erag)
        * [GenAI Catalyst](https://www.gigaspaces.com/products/genai-catalyst)
        * [Instant Data](https://www.gigaspaces.com/products/instant-data)
        * [Respond Proactively](https://www.gigaspaces.com/products/proactive-ai)
        * [Act Autonomously](https://www.gigaspaces.com/products/data-autonomy)
      * [Smart DIH](https://www.gigaspaces.com/products/smart-digital-integration-hub)
      * [XAP](https://www.gigaspaces.com/products/xap-imdg)
    * Solutions for
      * [Pharma](https://www.gigaspaces.com/products/erag/pharma)
      * [Procurement](https://www.gigaspaces.com/products/erag/procurement)
  * Solutions
    * [Digital Innovation Over Legacy Systems](https://www.gigaspaces.com/use-cases/digital-innovation-acceleration)
    * [Integration Data Hub](https://www.gigaspaces.com/technology/integration-data-hub)
    * [API Scaling](https://www.gigaspaces.com/use-cases/application-acceleration)
    * [Hybrid/Multi-cloud Integration](https://www.gigaspaces.com/use-cases/hybrid-or-multi-cloud-integration)
    * [Customer 360](https://www.gigaspaces.com/use-cases/customer-360)
    * [Retail](https://www.gigaspaces.com/retail-and-ecommerce-2)
    * [Financial Services](https://www.gigaspaces.com/financial-services)
    * [Insurance Companies](https://www.gigaspaces.com/industry-solutions/insurance)
  * How it Works
    * [eRAG Technology Overview](https://www.gigaspaces.com/how-it-works/erag-how-it-works)
      * [AI-Ready, IT-Friendly](https://www.gigaspaces.com/products/ai-ready)
      * [Semantic Reasoning](https://www.gigaspaces.com/how-it-works/semantic-reasoning)
      * [Questions to SQL Queries](https://www.gigaspaces.com/how-it-works/questions-into-sql-queries)
      * [Asked & Answered in Natural Language](https://www.gigaspaces.com/how-it-works/asked-answered-natural-language)
      * [Multiple Data Sources](https://www.gigaspaces.com/how-it-works/supported-data-sources)
      * [Governance](https://www.gigaspaces.com/how-it-works/proactive-ai-governance)
  * [Success Stories](https://www.gigaspaces.com/case-studies)
    * By Use Case
      * [Procurement](https://www.gigaspaces.com/use-cases/procurement-supply-chain)
      * [Operations](https://www.gigaspaces.com/use-cases/enhancing-pharmaceutical-operations)
      * [Budget Management](https://www.gigaspaces.com/use-cases/educational-organizations-budget-resources)
      * [Sales Operations](https://www.gigaspaces.com/use-cases/retail-boost-sales)
      * [Service Providers](https://www.gigaspaces.com/use-cases/contract-control-cost-savings)
      * [Utilities Management](https://www.gigaspaces.com/use-cases/cut-sla-penalties)
      * [Restaurant Management](https://www.gigaspaces.com/use-cases/power-smarter-restaurant-growth-erag)
    * By Industry
      * [Logistics](https://www.gigaspaces.com/case-studies/optimizing-supply-chain-with-ai-powered-insights)
      * [Pharma](https://www.gigaspaces.com/case-studies/transforming-patient-outcomes)
      * [Education](https://www.gigaspaces.com/case-studies/achieving-educational-budget-control)
      * [Retail](https://www.gigaspaces.com/case-studies/retail-intelligence-with-erag)
      * [Shipping](https://www.gigaspaces.com/case-studies/redefining-global-logistics)
      * [Energy](https://www.gigaspaces.com/case-studies/boosting-operations-reducing-penalties)
      * [Hospitality](https://www.gigaspaces.com/case-studies/restaurant-increase-profit-erag)
  * Resources
    * [Webinars](https://www.gigaspaces.com/resources/webinars)
    * [Videos](https://www.gigaspaces.com/resources/videos)
    * [Q&As](https://www.gigaspaces.com/answers)
    * [Whitepapers & Brochures](https://www.gigaspaces.com/resources/brochures)
    * [Customer Case Studies](https://www.gigaspaces.com/resources/case-studies)
    * [Events](https://www.gigaspaces.com/resources/events/)
    * [Glossary](https://www.gigaspaces.com/data-terms)
    * [FAQs](https://www.gigaspaces.com/products/erag/faq)
    * [Blog](https://www.gigaspaces.com/blog)
    * [Technical Documentation](https://docs.www.gigaspaces.com/latest/landing.html)
  * Company
    * [About](https://www.gigaspaces.com/about)
    * [Customers](https://www.gigaspaces.com/customers)
    * [Management](https://www.gigaspaces.com/leadership)
    * [Board Members](https://www.gigaspaces.com/board-members)
    * [Investors](https://www.gigaspaces.com/investors)
    * [News](https://www.gigaspaces.com/news)
    * [Press Releases](https://www.gigaspaces.com/press-releases)
    * [Careers](https://www.gigaspaces.com/career-lobby)
    * [Partners](https://www.gigaspaces.com/partners-lobby)
      * [OEM Partners](https://www.gigaspaces.com/partners-lobby/oem)
      * [System Integrators](https://www.gigaspaces.com/partners-lobby/system-integrators)
      * [Technology Partners](https://www.gigaspaces.com/partners-lobby/technology)
      * [Value Added Resellers](https://www.gigaspaces.com/partners-lobby/value-added-resellers)
    * Support & Services
      * [Services](https://www.gigaspaces.com/service-overview)
      * [Support](https://www.gigaspaces.com/support-lobby)
  * [Pricing](https://www.gigaspaces.com/pricing)
  * [Book a Demo](https://www.gigaspaces.com/?schedule-meeting-form=true)



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# Context Engineering

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## What is Context Engineering?

Context engineering is the way of shaping the information an AI system relies on before it makes a decision. It sounds simple, but it is not. When people talk about AI agents, they often focus on the model. They celebrate parameters, [architectures](http://www.gigaspaces.com/blog/enterprise-data-architecture-transformation), or whichever frontier breakthrough dominates the week. Yet, most failures in real deployments stem from something behind the scenes: the context those systems read and how that context is built.

A model can only respond to what it sees, if the prompt is cluttered, unclear, or misaligned with the task, performance drops. If vital instructions get lost in a sea of irrelevant text, confusion ensues. Good context unlocks capability, while bad context buries it. That is the essence of context engineering, the art of arranging information so the model can think clearly.

This field has grown quickly because the stakes are changing. [AI agents ](https://www.gigaspaces.com/data-terms/ai-agent)are now handling decisions once left to people. They route customer support, draft financial reports, and find insights hidden in operational systems. They produce answers at speed, and for that to work at scale, the underlying context must be carefully constructed. 

Context decides what the model pays attention to. And what the model ignores. Context decides [whether the reasoning](http://www.gigaspaces.com/blog/chain-of-thought-prompting-and-explainable-ai) stays sharp or drifts into ambiguity.

## How Context Engineering Works in AI Systems

At the heart of every production-grade AI workflow sits a simple loop. The system gathers data, restructures it, feeds it into a model, and then executes on the model’s output. The quality of that middle layer determines everything downstream. This is where AI context comes to life.

To engineer context well, start with reduction. Strip away noise, and keep only what the model must understand, to shape that information into a form the model can actually follow. That may mean rewriting logs into short summaries, or may mean labeling data, or it may mean outlining rules that govern the task. These steps prevent the model from wandering into irrelevant territory.

Next comes sequencing. The order of information matters because humans skim, and models read in a line. If instructions appear too late, the system misses them, but if examples appear too early, the model misinterprets the goal. The job of context engineering is to position the right detail at the right moment so the model processes it with the intended weight.

Finally, create guardrails that help the model stay consistent by defining boundaries and reminding the agent how it should act when the situation is unclear. Without them, even a strong model may drift, but with them, reasoning stays disciplined.

The result is a system that performs reliably under pressure and remains stable even as tasks grow more complex. 

## The Key Components of Effective Prompt Context Design

Effective prompt context analysis starts with clarity. A model should never guess the purpose of a task; it should see it directly. The core objective must appear early, written in concrete language, with no fluff or poetic phrasing that hides the real instruction.

Then comes structure. Divide the context into clear sections. Give the model instructions. Give it references. Give it constraints and examples, but avoid overloading it. Every line should justify its presence.

Relevance is the next requirement. Remove background details that add color for a human but confusion for a model. AI agents do not need personality cues unless the task demands them, they need the essential facts, the rules of the environment, and the intended output.

Consistency also matters. When terminology changes mid-prompt, accuracy drops and when formatting varies, precision suffers. Context engineering ensures the language stays aligned.

Finally, test aggressively. A context design that works once must prove it can work fifty times under slightly different conditions. If the context collapses under variation, it is not ready for production.

## Best Practices for Context Engineering in AI Agents

  * **Start small** : Build the minimal version of the context first, and expand only when the model fails for a clear reason. This keeps the context tight and avoids unnecessary complexity.


  * **Use exemplars:** sparingly but strategically. One good example can anchor the model’s understanding more than a paragraph of explanation, but too many examples create drift.


  * **Monitor drift** : As systems evolve, the context must evolve with them; a context that works in week one may become brittle by week twelve. Regular audits prevent decay.


  * **Automate where possible** : Many production teams now generate sections of context dynamically, based on real-time data. Automation gives agents fresh, accurate information while preserving consistency.


  * **Above all, measure everything**. Track completion rates, error types and how the agent behaves after subtle adjustments. Data will show where the context is helping and where it is harming.



## FAQs

### **What is the main goal of context engineering in AI systems?**

The main goal is to structure information so the model can reason accurately without distraction or confusion.

### **How does context engineering improve AI agent performance?**

It reduces noise, highlights essential details, and ensures instructions appear in the right order. Clear context leads to better decisions.

### **What’s the difference between context engineering and prompt engineering?**

[Prompt engineering](http://www.gigaspaces.com/question/what-role-does-prompt-engineering-play-in-generative-ai) focuses on crafting the immediate instruction. Context engineering governs the full environment around that instruction, including data, constraints, references, and structure.

### **Which industries benefit most from effective context engineering?**

Any industry deploying AI agents at scale benefits. Finance, operations, healthcare, logistics, and support automation see the strongest gains.

### **What are the best practices for optimizing prompt context in large language models?**

Be clear. Stay structured and keep only relevant information. Maintain consistent terminology, and test early and often.

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