Prompting & Interaction

Prompt Engineering

The practice of crafting inputs to get better outputs from AI models.

Definition

Prompt engineering is the skill of communicating with AI models effectively. Because LLMs are highly sensitive to how questions are phrased, minor changes to a prompt can produce dramatically different results. Prompt engineers learn techniques like providing context, specifying format, giving examples, and breaking complex tasks into steps — all to extract higher-quality, more consistent responses. In high-stakes business applications, well-designed prompts are as important as the model itself.

Why this matters for your business

Before investing in expensive fine-tuning, most businesses can achieve significant quality improvements through better prompt design. This is a low-cost, rapidly learnable skill that creates immediate value.

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Disclaimer

This definition is provided for educational and informational purposes only. It represents a general explanation of a technical concept and does not constitute professional, technical, or investment advice. Artificial intelligence is a rapidly evolving field; terminology, techniques, and capabilities change frequently. Coaley Peak Ltd makes no warranty as to the accuracy, completeness, or currency of the information provided. Nothing on this page should be relied upon as the sole basis for commercial, technical, legal, or investment decisions without independent professional advice.

Document reference: ISO_webpage_knowledge-base_glossary_v1

Last modified: 29 March 2026

Knowledge Base·Prompting & Interaction·Prompt Engineering