Definition
Prompt engineering is the practice of designing and optimizing input instructions to get better outputs from AI models. It includes techniques like few-shot learning (providing examples), system prompts (setting behavior), chain-of-thought prompting (asking the model to reason step by step), and structured output formatting.
Example
Instead of "Summarize this article," a well-engineered prompt reads: "You are a senior analyst. Summarize the following article in 3 bullet points, focusing on actionable insights for operations managers. Use specific numbers where available."
Why it matters
The difference between a vague prompt and a precise one can mean the difference between useless output and exactly what you need. Prompt engineering is the skill that determines how effectively you get value from AI tools.