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This guide explores the evolution of prompt engineering in agentic RAG systems, providing practitioners with essential tools and insights as coding agents like Cognition and Claude Code reshape industries.
If you're involved in building agentic Retrieval-Augmented Generation (RAG) systems, you've likely noticed a significant shift from traditional prompt engineering. The rise of coding agents like Cognition, Claude Code, and Cursor is driving this change, with the potential to create a trillion-dollar industry. This series delves into what I've learned from these teams and professional developers using these systems daily, offering practical insights for other industries.
For hands-on help, consider reaching out to Nila at nila.is. Mention you came from me.
We've moved beyond simple prompt engineering. Today, context engineering involves designing portfolios of tools (directory listing, file editing, web search), slash commands like /pr-create that inject prompts, specialized subagents such as @pr-creation-agent, and instruction files like AGENT.md that work across IDEs, command lines, GitHub, and Slack.
To grasp the practical implications of context engineering, let's look at how systems have evolved:

Tool Portfolios:
Slash Commands:
Specialized Subagents:
Instruction Files (AGENT.md):
Structured Tool Responses:
Faceted Search:
Subagent Architectures:
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About the author
Kai built ML infrastructure at a Bay Area startup before developing an obsession with transformer architectures and inference optimisation that eventually pulled him out of product work entirely. A stint at a compute research lab sharpened his instinct for what actually matters in a model release versus what is marketing. He writes from the inside — from the perspective of someone who has debugged the systems he is describing at three in the morning. He is allergic to hype and instinctively drawn to the unglamorous plumbing questions that everyone else skips over.
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