Course overview
03
Pathway 1 Β· Lesson 0360 min

Prompt Engineering Foundations

The COSTAR framework and structured communication

Learning Objective

By the end of this lesson, you will be able to: Write structured prompts using the COSTAR framework, apply at least three advanced prompting techniques, and demonstrate the difference between vague and precise prompts.

2.6Γ—

improvement in first-pass quality with structured prompts

Engage

"What if the quality of every AI output you receive is determined entirely by what you put in β€” before you hit send? That's not a metaphor. It's literally true."

Explore

A comprehensive introduction to prompt engineering techniques β€” covers the fundamentals you need before applying the COSTAR framework.

Explain

Why Most Prompts Fail

The average person types a prompt the same way they'd type a Google search: short, vague, context-free. 'Summarise this report.' 'Write an email.' 'Analyse this data.'

AI has no idea:

  • Who you are or what role you're writing for
  • What 'good' looks like for your specific context
  • Who will read the output and what they need
  • What format you actually want
  • What constraints apply (length, tone, what to avoid)
  • The result is a generic output that requires significant rework. This is the rework paradox: 37% of AI time savings are consumed by fixing poor outputs.

    πŸ“–

    The COSTAR Framework β€” by Sheila Teo

    COSTAR is a universal structure for AI prompts: β€’ C β€” Context: background, situation, relevant constraints β€’ O β€” Objective: the specific task or goal β€’ S β€” Style: writing approach (formal, analytical, persuasive) β€’ T β€” Tone: emotional register (confident, empathetic, urgent) β€’ A β€” Audience: who will read the output and their expertise β€’ R β€” Response: desired format (table, bullets, JSON, word count)

    Elaborate Β· Worked Example

    COSTAR in Action: Before and After

    Context

    Task: Write a message to a team about a new AI tool rollout.

    The Situation

    ❌ WEAK PROMPT: 'Write an email about our new AI tool.' βœ… COSTAR PROMPT: Context: I'm a department head at a 200-person financial services firm. We're rolling out Microsoft Copilot to all staff next Monday. Some team members are anxious about job security. Objective: Write an internal announcement email that generates excitement while addressing concerns. Style: Professional but warm β€” not corporate-speak. Tone: Reassuring and energising, not dismissive of concerns. Audience: Mixed team of analysts and admin staff, varying AI experience. Response: 250 words maximum, with a clear subject line and 3 bullet points on what changes next week.

    The Outcome

    The COSTAR prompt produces a targeted, contextually appropriate email on the first pass. The weak prompt produces a generic template that needs complete rewriting.

    Explain

    Five Advanced Prompting Techniques

    Beyond COSTAR, five techniques dramatically improve output quality:

    1. Role Assignment

    'Act as a senior McKinsey consultant with expertise in digital transformation...'

    Gives the model a persona that shapes its vocabulary, depth, and perspective.

    2. Chain-of-Thought

    'Think step by step before providing your final answer.'

    Forces the model to reason through the problem before concluding. Dramatically improves accuracy on complex tasks.

    3. Few-Shot Learning

    Provide 1–3 examples of the output you want. The model learns your format, style, and quality bar from examples β€” not just instructions.

    4. Constraints

    'Do not include... Limit to 200 words... Focus only on... Avoid jargon...'

    Boundaries prevent the model from going off-track.

    5. Meta-Prompting

    'Before answering, list what additional information you need from me.'

    Lets the AI tell you what's missing from your brief β€” then you fill the gaps.

    βœ…

    Combine Techniques for Maximum Impact

    The real power comes from combining multiple techniques in a single prompt. Role + COSTAR + Chain-of-Thought + Constraints together produce outputs that are 2.6Γ— better on the first pass than unstructured prompts. The investment is 2 minutes of prompt writing. The saving is 30 minutes of rework.

    Explore

    Practical demonstrations of chain-of-thought, few-shot learning, and role assignment in action.

    Explain

    Context Engineering: Beyond the Single Prompt

    Context engineering is the emerging discipline of designing the entire information environment for AI β€” not just the single message you send.

    Four principles:

  • Relevance: Include only what matters for this task. Noise dilutes signal.
  • Recency: Prioritise fresh data. Bridge the AI's knowledge cutoff.
  • Structure: Organise information with headers and clear labels.
  • Boundaries: Define scope explicitly β€” what's in and out of scope.
  • Think of it as briefing a new team member on their first day. What do they need to know to succeed? Give them that β€” and nothing more.

    Try It Β· Reflect & Apply

    Practice: Take a task you've previously given AI with a weak prompt. Rewrite it using the full COSTAR framework. What changed? What would the output difference be?

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    Evaluate Β· Knowledge Check
    1 / 3

    In the COSTAR framework, what does the 'A' stand for and why does it matter?

    Fluency Practice Studio

    Prompt Craft Studio

    Make the decision

    Decide what AI must know before it can produce a useful first draftβ€”and what you need to keep out of the prompt.

    Practise at work

    Rewrite a real weak prompt using COSTAR. Then add one example output, one constraint, and the instruction: β€˜List any information you still need before answering.’

    Quality check

    Score your prompt from 0–6: one point each for Context, Objective, Style, Tone, Audience, and Response format. A score below 5 is usually a signal to improve the brief, not blame the model.

    Spaced revisit

    Reuse the prompt on a new task in seven days. Record what context you added or removed and how the first-pass output changed.

    External video references

    Keep Learning on YouTube

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    Ready to move on?

    Mark this lesson complete and continue to "The 4D Framework".