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Agents

Context Engineering 2.0

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Figure 1
Context Engineering 2.0
The curator’s take

Researchers from SJTU, SII, and GAIR trace the 20+ year evolution of context engineering, reframing it as a fundamental challenge in human-machine communication spanning from primitive computing (Era 1.0) to today's intelligent agents (Era 2.0) and beyond, defining context engineering as systematic entropy reduction where humans preprocess high-entropy contexts into low-entropy machine-understandable representations—a gap that narrows as machine intelligence increases. - **Four-stage evolutionary framework**: Defines Context 1.0 (1990s-2020, structured inputs like sensors and GUIs), 2.0 (2020-present, natural language via GPT-3+), 3.0 (future human-level with social cues), and 4.0 (superhuman intelligence proactively constructing context). Each stage driven by breakthroughs that lower human-AI interaction costs. - **Formal mathematical definition**: Formalizes context as C = ā‹ƒ(e∈Erel) Char(e) grounding Dey's 2001 framework, defining context engineering as systematic operations for collection, storage, management, and usage. Provides technology-agnostic foundation from 1990s Context Toolkit to 2025 Claude Code. - **Comprehensive lifecycle design**: Examines collection (Era 1.0: GPS/mouse; Era 2.0: smartphones/wearables; Era 3.0: tactile/emotional), management (timestamps, QA compression, multimodal fusion, layered memory), and usage (intra-system sharing, cross-system protocols, proactive inference). - **Practical implementations**: Analyzes Gemini CLI (GEMINI.md hierarchical context), Tongyi DeepResearch (periodic summarization), KV caching optimization, tool design (<30 tools recommended), and multi-agent delegation patterns with clear boundaries. - **Era 2.0 shifts**: Acquisition expands from location/time to token sequences/APIs, tolerance evolves from structured inputs to human-native signals (text/images/video), understanding transitions from passive rules to active collaboration achieving context-cooperative systems. - **Future challenges**: Limited collection methods, storage bottlenecks, O(n²) attention degradation, lifelong memory instability, evaluation gaps. Proposes "semantic operating system" with human-like memory management and explainable reasoning for safety-critical scenarios.

Key points
01

Four-stage evolutionary framework: Defines Context 1.0 (1990s-2020, structured inputs like sensors and GUIs), 2.0 (2020-present, natural language via GPT-3+), 3.0 (future human-level with social cues), and 4.0 (superhuman intelligence proactively constructing context). Each stage is driven by breakthroughs that lower human-AI interaction costs.

02

Formal mathematical definition: Formalizes context as C = ā‹ƒ(e∈Erel) Char(e), grounding Dey’s 2001 framework, defining context engineering as systematic operations for collection, storage, management, and usage. Provides a technology-agnostic foundation from the 1990s Context Toolkit to 2025 Claude Code.

03

Comprehensive lifecycle design: Examines collection (Era 1.0: GPS/mouse; Era 2.0: smartphones/wearables; Era 3.0: tactile/emotional), management (timestamps, QA compression, multimodal fusion, layered memory), and usage (intra-system sharing, cross-system protocols, proactive inference).

04

Practical implementations: Analyzes Gemini CLI (GEMINI.md hierarchical context), Tongyi DeepResearch (periodic summarization), KV caching optimization, tool design (<30 tools recommended), and multi-agent delegation patterns with clear boundaries.

05

Era 2.0 shifts: Acquisition expands from location/time to token sequences/APIs, tolerance evolves from structured inputs to human-native signals (text/images/video), understanding transitions from passive rules to active collaboration, achieving context-cooperative systems.

06

Future challenges: Limited collection methods, storage bottlenecks, O(n²) attention degradation, lifelong memory instability, and evaluation gaps. Proposes a semantic operating system with human-like memory management and explainable reasoning for safety-critical scenarios.

Abstract

Karl Marx once wrote that ``the human essence is the ensemble of social relations'', suggesting that individuals are not isolated entities but are fundamentally shaped by their interactions with other entities, within which contexts play a constitutive and essential role. With the advent of computers and artificial intelligence, these contexts are no longer limited to purely human--human interactions: human--machine interactions are included as well. Then a central question emerges: How can machines better understand our situations and purposes? To address this challenge, researchers have recently introduced the concept of context engineering. Although it is often regarded as a recent innovation of the agent era, we argue that related practices can be traced back more than twenty years. Since the early 1990s, the field has evolved through distinct historical phases, each shaped by the intelligence level of machines: from early human--computer interaction frameworks built around primitive computers, to today's human--agent interaction paradigms driven by intelligent agents, and potentially to human--level or superhuman intelligence in the future. In this paper, we situate context engineering, provide a systematic definition, outline its historical and conceptual landscape, and examine key design considerations for practice. By addressing these questions, we aim to offer a conceptual foundation for context engineering and sketch its promising future. This paper is a stepping stone for a broader community effort toward systematic context engineering in AI systems.

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