An AI context engine is a system that gathers, interprets, and manages contextual information - such as user intent, data sensitivity, environment, and task relevance - to guide AI behavior and decision-making. It integrates diverse data sources, connects related information, and builds a unified understanding that allows AI models and agents to act appropriately within specific circumstances. Unlike basic AI systems that follow predefined rules, a context engine provides a dynamic intelligence layer that enables real-time, context-aware reasoning and more accurate, relevant responses.

‍Why it matters: By supplying continuous contextual intelligence, an AI context engine ensures AI outputs are precise, secure, and aligned with business objectives and compliance requirements, strengthening both performance and trust in AI systems.