Archive · 23 Jul 2026
Context is the key to AI success
Imagine two companies using the same AI model.
One succeeds because it uses the AI in a way that fits its unique business context, while the other fails because it doesn't.
The key difference is the context each company feeds into the AI.
Context includes all the decisions, exceptions, and precedents that make a business unique.
No one else can copy this context, making it a valuable advantage.
The article also explains that AI should not just be added to existing systems (AI-first) but should span the entire enterprise (AI-native) to be truly effective.
Additionally, the article warns that simply using AI to speed up existing processes is not enough; companies need to turn their hard-won judgment into structured context that can be used by AI.
Context, not just AI models, is the key to competitive advantage in AI integration.
AI-first integrates AI into individual applications, while AI-native spans the entire enterprise landscape.
Context engineering, harness engineering, and specification engineering are three disciplines forming around AI-native architectures.
The warning for India is that AI should not just be used to speed up existing processes but should be integrated with structured context.
The best-remembered context, not the smartest model, will decide who wins the next decade.
- Who
- The author is the VP, Office of the CTO at SAP.
- What
- The article discusses the importance of context in AI integration for enterprises.
- When
- The article was published in the Financial Express.
- Where
- The article is relevant to global enterprises, with a specific warning for India.
- Why
- The article aims to highlight that context, not just AI models, is the key to competitive advantage.
AI-First Approach
AI-Native Approach
Scope of AI Integration
AI-First Approach
AI is integrated into individual applications, providing capabilities within a single system.
AI-Native Approach
AI spans the entire enterprise landscape, providing intelligence across all systems.
Data Utilization
AI-First Approach
Uses data from a single application, limiting its understanding and effectiveness.
AI-Native Approach
Utilizes context from multiple systems, providing a comprehensive understanding and better decision-making.
- Author
- VP, Office of the CTO at SAP
- Key Concept
- Context is the competitive advantage in AI
- AI-First
- AI integrated into individual applications
- AI-Native
- AI spanning the entire enterprise landscape
- Context Engineering
- Assembling the right slice of information for each task
- Harness Engineering
- Wrapping models in enterprise controls for governance
- Specification Engineering
- Defining agent behavior precisely for testing