Last reviewed:
What is prompt engineering? Definition and business implications
Prompt engineering is the discipline of writing prompts methodically. It is not a rare profession but a transverse competence, which consists of formalising, testing, and standardising the instructions sent to an LLM to obtain reliable and reproducible outputs at the scale of an organisation.
Prompt engineering covers the set of techniques that turn a vague request into a structured instruction producing a reliable output. The main techniques include: assigning a role (“You are an expert in...”), providing examples (one-shot, few-shot), decomposing the task into steps (chain of thought), specifying the output format (JSON, markdown, numbered plan), and introducing negative constraints (“do not mention...”). In 2023, the term designated an emerging and well-paid profession (up to 300,000 dollars per year at some U.S. laboratories). Since 2024-2025, this segmentation has largely collapsed: models have become more tolerant of imprecise prompts, and best practices have spread. Prompt engineering is no longer a profession; it is a skill integrated into business roles (sales, legal, marketing), in the same way as Excel mastery or Google search.
Concrete example
The NBER study by Brynjolfsson, Li, and Raymond (2023, Generative AI at Work) observed 5,172 customer-support agents equipped with an AI assistant. The average productivity gain was 14%, but varied strongly by experience level and prompting quality: 34% gain for the least trained agents, and a near-zero effect for the most experienced on simple cases. The central lesson for executives: AI-driven productivity is not a property of the model, but of usage practice. Without a collective prompting discipline, gains remain uneven and not capitalisable.
See also
Further reading
Generative AI at Work, Brynjolfsson, Li & Raymond, NBER Working Paper 31161, 2023
Sources
- Generative AI at Work, Brynjolfsson, Li & Raymond, NBER Working Paper 31161, 2023. https://www.nber.org/papers/w31161
- Prompt engineering overview, Anthropic documentation 2026. https://docs.anthropic.com/en/docs/build-with-claude/prompt-engineering/overview