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Context in AI: The One Concept Most People Get Wrong

Published:
6 min read

If you’ve ever used ChatGPT, Claude, or any AI chatbot and thought “why did it just forget what I said 5 minutes ago?” then congratulations 🎉 you’ve already experienced what context means in AI.

Let me break it down.

First, Forget Everything Technical

I’m not going to throw math or research papers at you. Let’s start with something you already understand.

Think about how you have a conversation with a friend. You say something. They respond. You build on what they said. They build on what you said. Back and forth. The conversation flows because you both remember what was said before.

That memory? That’s context.

Now imagine your friend has amnesia. Every 10 minutes, they forget everything. You’d have to re-explain who you are, what you were talking about, and why it matters. Every. Single. Time.

That’s basically what happens when AI runs out of context 😅

So What Is Context in AI, Really?

Context is the information that an AI model can “see” and use when generating a response. It includes:

All of this gets bundled together and sent to the model every single time you hit send. The AI doesn’t actually “remember” anything. It re-reads the entire conversation from scratch each time.

Yeah, I know. Wild, right? 🤯

The Context Window: AI’s Short-Term Memory

Here’s where it gets interesting. Every AI model has something called a context window. Think of it as a box. Everything the AI needs to work with has to fit inside that box.

A “token” is roughly 3/4 of a word. So 128,000 tokens is roughly 96,000 words. That sounds like a lot, and it is. But here’s the thing…

Both your messages AND the AI’s responses eat into that same box.

So if you’re having a long conversation, or you’ve pasted a huge document, or the AI has been writing long responses, that box fills up fast. And once it’s full? The oldest stuff starts getting pushed out 👋

That’s when the AI starts “forgetting” things.

A Real World Example

Let’s say you’re using an AI to help you build an app. You start the conversation like this:

“I’m building a Laravel app for managing leads. The database has a leads table with name, email, phone, and status columns.”

The AI gets it. It writes code that uses those exact columns. Perfect.

Now 50 messages later, you ask “can you update the query to filter by status?”

If those first messages are still inside the context window, the AI remembers your schema and writes the correct query. But if the conversation has gone on too long and those early messages got pushed out, the AI might hallucinate column names or make assumptions that don’t match your setup.

This is why you sometimes see AI “go off the rails” in long conversations. It’s not broken. It literally can’t see the earlier parts of the conversation anymore.

Why Context Matters More Than Model Size

Here’s something most people miss. Everyone’s obsessed with which model is “smarter” or “bigger.” But honestly? Context management matters way more in practice.

A smaller model with well-managed context will outperform a bigger model drowning in irrelevant information.

Think of it this way 🧠

If I gave you a 500-page book and asked you to answer a question about page 12, you’d probably do fine if you could flip to page 12. But if I gave you 500 pages of mixed-up, unorganized notes and said “the answer is somewhere in here,” you’d struggle even if you’re the smartest person in the room.

Same thing happens with AI. The quality and relevance of what’s in the context window matters just as much as the model’s capabilities.

How Developers Use Context Strategically

When building AI-powered products, developers think about context constantly. Here are some common patterns:

1. System Prompts 📋

These are instructions that sit at the very top of the context window. They tell the AI how to behave, what tone to use, what to avoid. Every message the AI processes is influenced by the system prompt.

2. RAG (Retrieval-Augmented Generation) 🔍

Instead of stuffing everything into the context window, developers use search to find only the relevant information and inject it into the context right before the AI generates a response. Smart, right?

3. Summarization ✂️

When conversations get too long, some systems automatically summarize older messages and replace them with a compressed version. This keeps the context window from overflowing while preserving the important bits.

4. Context Pruning 🧹

Removing irrelevant or redundant information from the context before sending it to the model. Less noise = better answers.

Common Misconceptions

Let me clear up a few things that trip people up:

“AI remembers our past conversations” Nope. Unless the platform explicitly saves and reloads conversation history, each session starts from zero. When you open a new chat, the AI has no idea who you are.

“More context is always better” Not really. Throwing everything at the model can actually hurt performance. Models can get confused or give less focused answers when the context is cluttered. It’s about giving the right context, not all the context.

“The AI is thinking” It’s not thinking in the way humans do. It’s predicting the most likely next token based on patterns in its training data, filtered through whatever context you’ve provided. There’s no reasoning engine running in the background. It’s very sophisticated pattern matching.

Why Should You Care?

If you’re a developer building with AI, understanding context is the difference between an app that works and one that falls apart in production. Manage context well and your AI features will feel magical. Manage it poorly and users will think your product is broken.

If you’re just a user chatting with AI tools, understanding context helps you get better results. Keep conversations focused. Re-state important details if the chat gets long. Start a new conversation when switching topics.

It’s a small shift in how you interact with these tools, but it makes a big difference 🚀

Wrapping Up

Context in AI is simple at its core. It’s just “what information the AI can see right now.” But the implications of that simplicity run deep. It affects accuracy, memory, performance, and the overall user experience.

The next time an AI gives you a weird answer, before blaming the model, ask yourself: “Does it have the context it needs?”

Nine times out of ten, that’s the real issue.

Got questions? Hit me up on X (Twitter) or LinkedIn. Always happy to talk about this stuff ✌️

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