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Agentic AI is all about the context — engineering, that is

Presented by ElasticAs organizations scramble to enact agentic AI solutions, accessing proprietary data from all the nooks and crannies will be keyBy now, most organizations have heard of agentic AI, which are systems that “think” by autonomously gathering tools, data and other sources of information to return an answer. But here’s the rub: reliability and relevance depend on delivering accurate context. In most enterprises, this context is scattered across various unstructured data sources, including documents, emails, business apps, and customer feedback. As organizations look ahead to 2026, solving this problem will be key to accelerating agentic AI rollouts around the world, says Ken Exner, chief product officer at Elastic. "People are starting to realize that to do agentic AI correctly, you have to have relevant data," Exner says. "Relevance is critical in the context of agentic AI, because that AI is taking action on your behalf. When people struggle to build AI applications, I can almost guarantee you the problem is relevance.”Agents everywhereThe struggle could be entering a make-or-break period as organizations scramble for competitive edge or to create new efficiencies. A Deloitte study predicts that by 2026, more than 60% of large enterprises will have deployed agentic AI at scale, marking a major increase from experimental phases to mainstream implementation. And researcher Gartner forecasts that by the end of 2026, 40% of all enterprise applications will incorporate task-specific agents, up from less than 5% in 2025. Adding task specialization capabilities evolves AI assistants into context-aware AI agents.Enter context engineeringThe process for getting the relevant context into agents at the right time is known as context engineering. It not only ensures that an agentic application has the data it needs to provide accurate, in-depth responses, it helps the large language model (LLM) understand what tools it needs to find and use that data, and how to call those APIs. While there are now open-source standards such as the Model Context Protocol (MCP) that allow LLMs to connect to and communicate with external data, there are few platforms that let organizations build precise AI agents that use your data and combine retrieval, governance, and orchestration in one place, natively. Elasticsearch has always been a leading platform for the core of context engineering. It recently released a new feature within Elasticsearch called Agent Builder, which simplifies the entire operational lifecycle of agents: development, configuration, execution, customization, and observability.Agent Builder helps build MCP tools on private data using various techniques, including Elasticsearch Query Language, a piped query language for filtering, transforming, and analyzing data, or workflow modeling. Users can then take various tools and combine them with prompts and an LLM to build an agent. Agent Builder offers a configurable, out-of-the-box conversational agent that allows you to chat with the data in the index, and it also gives users the ability to build one from scratch using various tools and prompts on top of private data. "Data is the center of our world at Elastic. We’re trying to make sure that you have the tools you need to put that data to work," Exner explains. "The second you open up Agent Builder, you point it to an index in Elasticsearch, and you can begin chatting with any data you connect this to, any data that’s indexed in Elasticsearch — or from external sources through integrations.”Context engineering as a disciplinePrompt and context engineering is becoming a discipli. It’s not something you need a computer science degree in, but more classes and best practices will emerge, because there’s an art to it. "We want to make it very simple to do that," Exner says. "The thing that people will have to figure out is, how do you drive automation with AI? That’s what’s going to drive productivity. The people who are focused on that will see more success."Beyond that, other context engineering patterns will emerge. The industry has gone from prompt engineering to retrieval-augmented generation, where information is passed to the LLM in a context window, to MCP solutions that help LLMs with tool selection. But it won't stop there."Given how fast things are moving, I will guarantee that new patterns will emerge quite quickly," Exner says. "There will still be context engineering, but they’ll be new patterns for how to share data with an LLM, how to get it to be grounded in the right information. And I predict more patterns that make it possible for the LLM to understand private data that it’s not been trained on."Agent Builder is available now as a tech preview. Get started with an Elastic Cloud Trial, and check out the documentation for Agent Builder here.Sponsored articles are content produced by a company that is either paying for the post or has a business relationship with VentureBeat, and they’re always clearly marked. For more information, contact sales@venturebeat.com.