Europe 2026
How we solved Context Management in Agents — Sally-Ann Delucia
Overview
This talk addresses the critical challenge of context management in AI agents, arguing that context engineering, rather than prompt engineering, is the key to agent success. The core thesis is that effective context management allows agents to retain necessary information while discarding irrelevant details, preventing failures caused by overloaded or insufficient context windows.
Who should watch
- AI Engineers building agents
- Product Managers defining agent capabilities
- Developers struggling with agent context limits
- Teams experiencing agent failures due to long conversations or data overload
Key takeaways
- Context engineering is paramount for agent success, focusing on strategically selecting what the model sees rather than just fitting data within token limits.
- A naive approach of simply truncating context leads to agents forgetting crucial information and breaking reasoning, making follow-up questions nonsensical.
- Summarizing context using LLMs is unreliable as it lacks control over what information is deemed important.
- A successful strategy involves smart truncation, retaining the head and tail of the context while storing the middle for potential retrieval, combined with memory.
- Long conversations can cause failures that appear late in the interaction; long session evaluations are crucial for testing context management.
- Offloading heavy data processing and context management to sub-agents keeps the main conversation light and manageable.
- The Arize team found that combining truncation with memory storage was more effective than summarization for managing context.
- Agents often fail due to context issues, not prompt limitations, highlighting the shift in focus for AI development.
Notable quotes
*The best context strategy is one that lets your agents remember what it needs to and forget what it doesn't.*
*Context management isn't is a product and a UX problem, not just an engineering one.*
*Agents don't fail because of prompts, they fail because of context.*
Unofficial community note. Prefer the recording for nuance.