Context in AI Prompts
Providing Adequate Background Information
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(This article was originally published on 8 December 2024)
Crafting strong artificial intelligence (AI) prompts involves understanding the specific needs of the task, anticipating the nuances of the data, and framing the prompt in a way that the AI model can interpret with minimal misdirection. Even small changes in wording can have a significant impact on the quality of the output, making prompt crafting a key skill for leveraging AI effectively.
In our previous newsletter, we introduced core components of a robust prompt. Today, we discuss “Context,” especially as it relates to investment research and analysis.
Context frames the problem for the Large Language Model (LLM). By providing sufficient information, you, as the user, help the AI platform better understand the landscape in which it is operating, which reduces the chances of generating misaligned or irrelevant outputs. Without proper context, the AI model may produce results that don't consider key factors like market conditions, economic indicators, or specific business scenarios.
Thus, offering the AI a well-defined scenario or background information enhances its ability to deliver insights that align with your objectives. Providing necessary background information helps the AI model grasp the nuances of the request. This can include details about the subject matter, the intended audience, or any specific constraints. It is also important to understand the specific strengths and capabilities of the AI system you are working with.
Different AI models excel in various areas, such as language generation or data analysis. By leveraging these strengths, you can create prompts that maximize the AI's potential and produce high-quality response. Here’re two examples that highlight the importance of context in prompting:
