Advanced Context Engineering for Agents

Dexter Horthy of Human Layer explains why naive AI coding agents fail in complex software projects and introduces 'Advanced Context Engineering.' He details a spec-first, three-phase workflow (Research, Plan, Implement) designed to manage context intentionally, keeping utilization below 40% to maximize model performance. This approach uses subagents and frequent compaction to turn AI from a prototyping tool into a production-ready system for large, brownfield codebases.