Context is input
The model cannot read your product, database, college form, or user intent unless you pass the right parts in the prompt.
Good context gives the model the facts it must use, the rules it must follow, and the limits it must not cross.
What to include
Think of context as the minimum packet a smart intern needs to do the task correctly.
For an AI feature, that packet usually has four parts: user goal, relevant data, product rules, and output audience.