This episode introduces prompt engineering as a crucial skill for effectively communicating with AI models, highlighting its nuances beyond simple trial-and-error. It covers best practices for writing effective prompts, including clarity, the use of personas and examples, and the importance of context. The text further discusses prompt attacks, outlining various methods and potential defenses at the model, prompt, and system levels. Finally, the chapter explores Retrieval-Augmented Generation (RAG) and AI agents, explaining their architectures, functionalities, the role of tools and planning, and considerations for evaluation and memory management in these advanced applications of prompt-based AI