The AI industry is discovering that intelligence alone isn’t enough. An agent can be incredibly capable… but if it doesn’t understand your business, your data, your rules, your customers, your history, and your boundaries— #73

TopCat AI Signal Report #73A new wave of enterprise AI work is focusing on something being called context engineering.The basic idea is simple:Instead of endlessly improving the prompt—you improve the information environment surrounding the AI.Recent enterprise work is treating organizational context as managed infrastructure: testing what information agents receive, governing that information, and making sure agents have the right context for the task they’re performing.And I think this is one of those concepts that sounds technical…until you bring it into a small business.Imagine your AI receptionist.It knows your business hours.But does it know your holiday schedule?It knows your services.But does it know which services require consultation first?It knows your pricing.But is that pricing current?It knows how to book an appointment.But does it know when not to book one?That’s context.And without it…AI can be technically intelligent while still being operationally wrong.