Gartner® In Analyst Take: Why Context Engineering and Decision Intelligence Are Critical for Agentic AI Success

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Gartner® In Analyst Take: Why Context Engineering and Decision Intelligence Are Critical for Agentic AI Success

Agentic AI adoption is accelerating, but most teams are skipping the layers that matter most.

Gartner predicts that by 2027, over 40% of agentic AI projects will be canceled due to escalating costs, unclear value, or inadequate controls.

The difference between the projects that stick and the ones that don't? Two critical capabilities: context engineering and decision intelligence.

In this Analyst Take, Gartner Sr. Director Analyst Deepak Seth breaks down why prompt engineering alone falls short for agentic systems, what a properly engineered context layer looks like, and how decision intelligence ensures agents optimize for the right business outcomes, not just the nearest metric. If you're building or evaluating AI agents for production, this is the framework to internalize before you ship.

Download the report.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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Agentic AI adoption is accelerating, but most teams are skipping the layers that matter most.

Gartner predicts that by 2027, over 40% of agentic AI projects will be canceled due to escalating costs, unclear value, or inadequate controls.

The difference between the projects that stick and the ones that don't? Two critical capabilities: context engineering and decision intelligence.

In this Analyst Take, Gartner Sr. Director Analyst Deepak Seth breaks down why prompt engineering alone falls short for agentic systems, what a properly engineered context layer looks like, and how decision intelligence ensures agents optimize for the right business outcomes, not just the nearest metric. If you're building or evaluating AI agents for production, this is the framework to internalize before you ship.

Download the report.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Agentic AI adoption is accelerating, but most teams are skipping the layers that matter most.

Gartner predicts that by 2027, over 40% of agentic AI projects will be canceled due to escalating costs, unclear value, or inadequate controls.

The difference between the projects that stick and the ones that don't? Two critical capabilities: context engineering and decision intelligence.

In this Analyst Take, Gartner Sr. Director Analyst Deepak Seth breaks down why prompt engineering alone falls short for agentic systems, what a properly engineered context layer looks like, and how decision intelligence ensures agents optimize for the right business outcomes, not just the nearest metric. If you're building or evaluating AI agents for production, this is the framework to internalize before you ship.

Download the report.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Agentic AI adoption is accelerating, but most teams are skipping the layers that matter most.

Gartner predicts that by 2027, over 40% of agentic AI projects will be canceled due to escalating costs, unclear value, or inadequate controls.

The difference between the projects that stick and the ones that don't? Two critical capabilities: context engineering and decision intelligence.

In this Analyst Take, Gartner Sr. Director Analyst Deepak Seth breaks down why prompt engineering alone falls short for agentic systems, what a properly engineered context layer looks like, and how decision intelligence ensures agents optimize for the right business outcomes, not just the nearest metric. If you're building or evaluating AI agents for production, this is the framework to internalize before you ship.

Download the report.

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.