Context Engineering: The Next Frontier in Large Language Model Optimization “Providing structured cognitive tools to GPT-4.1 increased its pass@1 performance on AIME2024 from 26.7% to 43.3%, nearly matching o1-preview capabilities.” — IBM Zurich Research, June 2025 – Prompt Engineering + Context Engineering ↓ ↓ “What you say” “Everything the model sees” (Single instruction) (Examples, memory, retrieval, tools, state, control flow) Why Context Engineering Matters While most focus on prompt optimization, IBM Zurich’s 2025 breakthrough revealed a deeper opportunity. Their experiments demonstrated that structured cognitive tools triggered quantum leaps in reasoning capabilities—marking the birth of context engineering as a distinct discipline. …