Enterprise AI is moving fast from single-turn assistants to multi-step autonomous agents, and that shift makes the context layer the most critical piece of infrastructure in the stack. Here is why. Agents do not just answer questions. They take sequences of retrieval-dependent actions where each step's output becomes the next step's input. That means context is not a one-time input. It is required at every step. And if an agent is fed the wrong context at any single step, the failure is not contained. It cascades downstream, corrupting every subsequent step, until the final output is fluent, well-cited and wrong. This is catastrophic in a way that single-turn AI failures never were.
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