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Software Engineering Insights

Vibe Coding Isn’t Enough: How to Build Context-Aware Systems with AI

Dec 30, 2025 1:05:46 PM

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Vibe Coding Isn’t Enough: How to Build Context-Aware Systems with AI
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Vibe Coding

 

Introduction: AI-Assisted Development at a Breaking Point

 

Vibe coding didn’t arrive quietly. It spread through software development at the speed of a meme, pushed by generative AI tools that could turn natural language into working code in seconds.

By 2025, developers weren’t just experimenting with AI tools; many were relying on it to scale applications, refactor services, and unblock stalled work. For a while, it felt like a breakthrough. Less boilerplate and fewer context switches. Coding felt lighter, more conversational, closer to describing intent than struggling with syntax.

However, the confusion surrounding vibe coding was there from the start.  As multiple experts have noted, the term itself spread faster than its meaning. The confusion around vibe coding isn’t accidental. The term spread like wildfire after a single tweet by Andrej Karpathy in early 2025.

The Rise of Vibe Coding in 2024 and 2025

What began as a casual description of a personal workflow quickly became a meme; reinterpreted, amplified, and stripped of nuance as it moved from social media into boardrooms and engineering roadmaps. When memes collide with production systems, the consequences tend to be very real.

As vibe coding moved from side projects into production systems, a familiar theme emerged: what works quickly doesn’t always work reliably. Across developer forums and enterprise engineering teams, a few issues keep surfacing. AI-generated code looks complete, but breaks under real-world constraints. Architectural assumptions are violated. Security considerations are missed. Changes are difficult to reason about weeks later.

That gap is visible at the organizational level too. In its latest State of AI report, McKinsey found that nearly 90% of organizations now use AI in at least one business function, yet only a small minority report significant, enterprise-wide impact. The difference isn’t access to better models or more powerful tools. It’s whether AI is embedded into workflows with the governance, context, and operating discipline required to scale.

In software engineering, this gap becomes apparent precisely when AI-generated code transitions from demos into production systems and begins to malfunction. Software development is now at a breaking point. Tools have outpaced practices. And once again, the industry is learning that speed alone is not a competitive advantage.

 

What Is Vibe Coding? A Primer on AI-Assisted Development

 


Vibe coding describes a style of development where engineers rely heavily on AI coding tools to generate and modify code based on natural-language prompts. Instead of implementing logic line by line, developers describe outcomes: “add validation,” “build an API,” “refactor this service”, and let the model handle the details.


Vibe coding, in its simplest form, meant letting an AI coding tool iterate freely until something works, often without reviewing every change in detail. Some experts framed it as something suited for low-risk experiments or weekend projects, not a universal replacement for engineering discipline.

 
In this mode, AI becomes a 24/7 collaborator. Modern tools can modify multiple files, run tests, execute terminal commands, and iterate autonomously. For beginners, this lowers the barrier to entry. For experienced engineers, it promises speed and relief from repetitive work. Importantly, the origins of vibe coding were narrower than many interpretations suggest. Early descriptions focused on low-stakes experimentation and prototypes rather than production-critical systems. The problem isn’t that vibe coding exists; it’s how broadly and unseriously the term has been applied.


This shift is seen in mainstream AI development as well. Tools like Google’s Vertex AI (Gemini) and Google AI Studio make it increasingly easy to generate code, workflows, and integrations from high-level intent.


The Allure and Limits of Vibe Coding


Many companies this year reported that while developers remain in high demand, the nature of the role is changing. Some engineers see AI doing a growing percentage of routine work, prompting concerns about the erosion of foundational skills and the need for developers to focus more on design, architecture, and verification. These shifts are already reflected in job postings and skill expectations. And this isn’t because coding itself is disappearing, but because the type of coding work that remains valuable is changing. 

This pattern is common across ML development services, also. Teams move quickly to automate tasks or generate output, only to discover that long-term value depends on how well those capabilities integrate with existing systems.

Why Vibe Coding Feels So Effective

The appeal of vibe coding is as much psychological as it is technical. Developers often describe slipping into a flow state, fewer interruptions, fewer trips to documentation, and faster feedback loops. Ideas move from concept to working models almost immediately. For teams under constant delivery pressure, that speed is addictive. 


Many developers are feeling this shift viscerally. In Business Insider’s industry retrospective on 2025, one engineer described how AI helped him accomplish projects about twice as fast. He also noted that waiting on a bot to generate code sometimes disrupted his own problem-solving flow and reduced his curiosity about core concepts. His experience echoes a wider trend among engineers who enjoy the speed yet worry that delegation can blur foundational skills over time.


Many engineers frame vibe coding as a way to stay productive without burning out. It doesn’t eliminate thinking, but it removes friction. That distinction matters because friction is often what breaks momentum. For prototyping, styling, or learning unfamiliar libraries, this mode can feel genuinely useful. Several engineers describe vibe coding less as a methodology and more as a state of mind. Many compare it to slipping into a flow state, the feeling that time disappears while you’re building. 

 

Where Vibe Coding Falls Short


The convenience of vibe coding can mask bigger risks. As experts at TechRadar point out, vibe coding can open programming to a wider audience and eliminate repetitive work. However, it also carries a significant risk when developers do not fully understand the code being generated in their name. AI-generated output, even when it appears complete, can be generic and lack the nuanced understanding of business logic, security controls, or system constraints that human engineers rely on.


The problems begin when flow replaces scrutiny. AI tools are optimized to produce plausible solutions, not necessarily appropriate ones. Ask for a small change, and the model may generate an expansive solution rather than a minimal one.

Ask for speed, and it may duplicate logic instead of refactoring existing structures. A common pattern emerges: the code works, but no one fully understands why. This tendency to over-engineer becomes especially dangerous in production systems. What looks like progress today becomes a hassle tomorrow, and debugging shifts from understanding intent to reverse-engineering output.


From Vibe Coding to Context Engineering:  What “Context” Truly Means in AI

In software engineering, context isn’t abstract. It’s concrete and layered. Context includes the structure of the codebase, architectural patterns, domain rules, security policies, and operational constraints. Human engineers internalize this over time. However, AI systems do not, unless that context is explicitly provided. Without context, AI generates plausible code, whereas with context, it can generate coherent code.

Vibe Coding vs Context Aware AI

Context-aware AI goes beyond remembering a conversation history or reading a few files. In practical software engineering terms, it means grounding AI behavior in persistent, structured knowledge about the system it’s modifying. That includes architectural boundaries, dependency relationships, domain rules, security policies, and operational realities such as runtime constraints. Without these signals, AI can only infer intent, and with them, it can reason about trade-offs.

What Context Means in Software Systems


For developers, this difference shows up immediately. Context-aware systems are less likely to introduce duplicated logic, violate architectural patterns, or suggest changes that conflict with non-obvious constraints. Instead of reacting to prompts in isolation, the AI operates with situational awareness, closer to how experienced engineers think.


Moving from vibe coding to context engineering is also a shift toward AI-native architecture, where systems are designed to support AI as a long-lived contributor rather than an ad-hoc tool.

The Pillars of Context-Aware Intelligence

Context-aware AI systems are built on a small number of foundational pillars that determine whether they behave like isolated or reliable participants:

  • Structural awareness: Understanding how the codebase is organized, how components interact, and where changes should occur.
  • Policy awareness: Applying security, compliance, and governance rules to shape what the AI is allowed to generate.
  • Historical awareness: Retaining knowledge of prior decisions so systems don’t repeatedly reintroduce old mistakes or override intent.
  • Operational awareness: Accounting for runtime behavior, scalability constraints, and failure modes once software leaves the editor.


Context Engineering vs Prompt Engineering


Prompt engineering optimizes individual interactions. On the other hand, context engineering designs systems. Tuning prompts may improve a single response, but they don’t scale across teams or time. Context engineering treats architectural knowledge, policies, and system state as first-class inputs: persistent, reusable, and enforceable. 

Many experts draw an important distinction here between using AI tools and abdicating responsibility to them. Modern coding assistants now operate in supervised, agentic modes, modifying multiple files, running tests, and even executing terminal commands. Used intentionally, these capabilities can make teams faster and more effective. Used indiscriminately, they become opaque systems operating without guardrails. Context engineering, in this sense, isn’t about limiting AI; it’s about deciding when to supervise and when to let it run.

 

Why Stateless AI Systems Struggle at Scale


Stateless AI struggles at scale because each interaction starts without shared memory. Developers must repeatedly restate architectural intent and constraints, leading to inconsistent implementations over time. Similar prompts produce different results, and consistency depends on human vigilance rather than system guarantees.


In large teams, this creates divergence. Different engineers prompt the same AI in slightly different ways, generating code that solves the same problem with incompatible assumptions. Without persistent context, there is no mechanism to enforce consistency. Code reviews shift from improving design to reconciling inconsistencies.


Context engineering addresses this by making memory a system capability. Persistent, shared context reduces token waste, lowers review overhead, and enforces consistency across teams. This turns AI from a reactor into a scalable participant in software systems.


Why Context-Aware AI Enables Production-Ready Systems

 

As AI becomes embedded deeper into software delivery, teams need a guiding principle that balances speed with responsibility. Context-aware AI serves as that north star, not because it slows development, but because it prevents progress from collapsing under its own weight.


Organizations that treat context as optional often see early wins followed by mounting friction: review bottlenecks, brittle systems, and escalating risk. Context-aware AI offers a different trajectory, one where automation scales alongside understanding, not ahead of it.

1. Architectural Integrity and System Coherence


Without context, AI optimizes locally. With context, it respects global structure. Context engineering helps enforce architectural boundaries, preserve design intent, and prevent drift, especially as teams and codebases grow. One of the costs of vibe coding is architectural drift. Small, locally “correct” changes accumulate into systems that no longer reflect their original design.

This is where the concept of AI-native architecture becomes critical. In an AI-native architecture, AI is not treated as an external assistant added onto existing systems. Rather, it’s a first-class participant governed by the same architectural principles as human-written code. 

This becomes even more important as teams adopt agentic AI systems that can reason, plan, and act across multiple steps. Without a strong architectural context, autonomous agents increase inconsistency instead of reducing it. Our work on agentic AI solutions reflects this shift toward grounding autonomy rather than isolated decision-making.

Context-aware AI helps preserve coherence by enforcing architectural intent. Instead of generating whatever works, the system generates what fits: respecting layering, reuse, and dependency boundaries. Over time, this reduces entropy rather than accelerating it. For large teams, this isn’t just an engineering preference. It’s what makes systems maintainable beyond the original authors.

2. Developer Productivity Beyond Scaffolding

 

True productivity isn’t measured by how fast code appears, but by how little rework is required later. Context-aware systems reduce regressions, speed up reviews, and preserve shared understanding across teams. Developers spend less time correcting AI output and more time designing systems.
Vibe coding often optimizes for short-term productivity: getting something working as fast as possible. Context-aware AI optimizes for productivity that lasts. By reducing rework, improving review quality, and preserving shared understanding, context-aware systems allow developers to spend more time on design and less time on cleanup. Instead of replacing expertise, they reinforce it, amplifying good practices rather than overlooking them. Over time, this distinction matters more than pure speed.

3. Security and Governance by Design


Security cannot be added on after the code is generated. That risk isn’t hypothetical. TechRadar’s analysis highlights how unvetted AI-generated code can expose systems to serious vulnerabilities. From subtle security weaknesses to unintentional exposure, especially when LLMs draw on public repositories without awareness of an organization’s specific protections. In real business environments, this means that the speed of vibe coding must be balanced with review and defensive design. 

Security-First AI Development

Context-aware systems embed policies directly into AI workflows, defining what data can be accessed, what patterns are allowed, and what constraints must be respected. This reduces reliance on manual review and lowers the risk of accidental exposure. The alternative is increasingly visible: teams shipping systems they don’t fully understand, then scrambling when those systems are exploited.

4. Auditability, Compliance, and Change Management


Production systems require traceability by default. Teams must be able to answer three questions at any time: what changed, why it changed, and under which constraints. Prompt-only AI workflows struggle here because decisions are undocumented and difficult to reconstruct after the fact.


Context-aware AI makes auditability a system capability. By linking generated output to architectural context, policies, and prior decisions, changes become explainable rather than opaque. Instead of relying on human memory or scattered prompts, teams can trace AI-assisted changes back to their inputs and governing rules.


This matters most in regulated and large-scale environments. Compliance frameworks such as SOC 2, ISO, and internal governance processes depend on repeatability and evidence. Context-aware systems support this by preserving decision history and making AI-driven changes reviewable over time.

5. Enterprise Readiness and Scalability

 


Production systems must outlive tools. Context engineering ensures AI workflows evolve alongside codebases, not ahead of them. What works for a single developer does not automatically scale to an organization.
Context-aware AI supports enterprise realities: multiple teams, regulatory requirements, and continuous change. By saving shared context once and reusing it across workflows, companies avoid the fragmentation that comes from every engineer prompting in isolation. This is what turns AI from a productivity experiment into a scalable capability.


6. Reliability, Trust, and Reducing AI Hallucinations


Hallucinations are often framed as model flaws. In practice, they’re frequently context failures. When AI operates with verified sources and clear constraints, hallucinated logic drops sharply. Output becomes predictable, and trust improves. Hallucinations undermine trust not because they’re frequent, but because they’re unpredictable. Developers cannot easily tell when AI output is wrong until it causes downstream failures.
Context-aware AI dramatically reduces this risk by grounding generation in verified sources and system constraints. When the AI knows what exists and what cannot exist, fabricated APIs, phantom data sources, and invalid assumptions become far less common. Reliability isn’t achieved by better guessing. It’s achieved by better grounding.


Implementing Context Engineering in Practice


Context-aware AI depends on well-managed knowledge. When documentation becomes a machine-readable context, it stops being a liability and becomes a leverage. Documentation, design decisions, and system constraints must be accessible, not just to humans, but to machines. Teams that invest here see compounding returns across both human and AI productivity.

This is how teams begin transitioning toward AI-native architecture, embedding context and system awareness into the foundation of their workflows.


1. Adding a Context Layer to Existing AI Tools

 


Context engineering does not require replacing existing AI coding tools. It requires augmenting them with a persistent, shared context that guides how those tools operate. Without this layer, AI tools respond to prompts in isolation, producing inconsistent results across users and sessions.


A context layer typically includes repository awareness, dependency graphs, architectural metadata, and policy constraints. These inputs give AI systems a stable frame of reference, allowing them to generate changes that align with system structure rather than local intent.


By externalizing context from prompts and embedding it into the system, teams reduce variability and cognitive load. Developers no longer need to restate architectural rules or historical decisions on every interaction. The result is faster iteration with fewer surprises. 


2. The Role of Data, Documentation, and Knowledge Management

 


Documentation becomes a machine-readable context. Appropriate governance isn’t just policy; it’s about technical controls. According to TechRadar, one way to shore up AI coding workflows is to treat AI-generated code with the same rigor as human code, including careful review, testing AI models on trusted data, and linking internal identity management to least-privilege access. These practical controls help ensure that AI’s convenience doesn’t come at the cost of elevated risk. 

Knowledge bases become active inputs, not static artifacts. Teams that invest here benefit twofold, as both humans and AI systems reason more effectively.


3. Human-in-the-Loop Collaboration Not Replacement

 

AI does not eliminate human judgment; rather, it amplifies its importance. Reviews, feedback loops, and validation workflows remain essential, not as safety nets, but as stabilizers. Responsibility does not disappear simply because code was generated.

Experts emphasize that the shifting developer experience often involves more reviewing than writing code. Some studies show that developers using AI assistants didn’t become more productive or less burnt out, and in some comparisons, even faced higher bug rates. In this environment, context engineering isn’t just academically viable. It’s a practical buffer against the unpredictable quality of machine-generated contributions.


4. Cost, Efficiency, and the Economics of Context


Repeated prompting is expensive. Every stateless interaction forces developers to recreate context, increasing token usage and review effort. At scale, these costs compound quietly, eliminating the productivity gains AI initially promises.


Persistent context improves efficiency by shifting cost from repetition to reuse. When architectural rules, policies, and system knowledge are stored once and reused across workflows, AI systems generate more consistent output with fewer tokens and less human correction.


From an economic perspective, context engineering reduces waste. It lowers inference costs, shortens review cycles, and prevents errors due to misunderstood constraints.


The Future of Intelligent Systems


As AI systems grow more autonomous, the importance of context increases rather than diminishes. Without context, autonomy leads to chaos. With context, it enables proactive, adaptive systems that prepare for needs instead of reacting to prompts.


1. From Reactive Prompts to Proactive Intelligence

The next generation of systems won’t wait for prompts. They’ll anticipate intent, guided by persistent context. This phase of AI-assisted development will be defined by systems that act before being asked, suggesting changes, flagging risks, and adapting to evolving requirements. Persistent context is what makes this possible. Without it, proactivity becomes guesswork.


2. Agentic AI and the Role of Context Foundations

 

Agentic systems fail without grounding. Context engineering provides that foundation, preventing autonomy from becoming chaos. Business Insider’s year-end reflection also pointed to a broader industry shift. While vibe coding captured headlines in 2025, its limits have tempered some of the initial hype. Early speculation that AI might do the work of mid-level engineers has given way to a more nuanced view. The future will likely see features as collaborative tools that augment human developers, not replace them outright. This aligns with the emerging consensus that context, rather than raw generation capability, will determine the real value of AI in engineering workflows.


3. Context as an Ethical and Operational Requirement


Accountability, explainability, and responsible automation all depend on context. Without it, failures are silent, and responsibility diffused. The conversation around vibe coding is evolving beyond simple tooling. As TechRadar notes, while vibe coding can speed development and make coding accessible, it isn’t always worth the risk unless proper oversight is in place. This captures a broader industry sentiment that the future of AI-assisted development won’t be defined by sheer convenience. Rather, it’ll be shaped by how teams balance speed with safety, security, and scalability.

 


4. Context-Aware AI as the Foundation for Innovation


The next phase of AI innovation extends beyond code generation. It centers on system-level intelligence, AI that understands how software behaves over time, not just how it looks in a single change.


Context-aware AI enables this shift by grounding generation in structure, history, and constraints. Instead of producing isolated solutions, it supports evolution: anticipating impact, preserving intent, and adapting as systems grow.


Without context, innovation remains brittle and disposable. With context, AI becomes a durable capability:  one that supports long-lived systems, complex organizations, and continuous change. This is what separates short-term acceleration from sustainable innovation.

 

Conclusion: Moving Beyond Vibes to Engineering Discipline

 


Vibe coding reveals what’s possible, but context engineering determines what lasts. AI has permanently changed how software is written. The question is whether teams treat it as a shortcut or as a system component that requires structure, governance, and intent.

Reporting from major industry publications toward the end of 2025 suggests this isn’t just a fad. While vibe coding drove excitement, developers and companies are increasingly asking not just what AI can build, but what it builds that we can trust and maintain. That emerging reality, visible across developer sentiment, enterprise reporting, and risk discussions, points to a future where context, quality, and human oversight matter just as much as speed. Vibe coding can unlock creativity, but responsibility for what ships and what breaks remains human. Vibe coding may write the first draft,  but context is what makes software production.

If you’re evaluating how context engineering or agentic AI fits into your architecture, speak with our experts to understand how context-aware AI can fit into your existing architecture.

Topics: Artificial Intelligence Context Engineering Coding

Navya Lamba

Written by Navya Lamba

Navya Lamba is a Content Marketing Associate with an MSc in International Management from Imperial College Business School, London, where she studied digital marketing and emerging technologies. Her work includes content and product marketing initiatives across startups and global companies, producing SEO-led articles, case studies and go-to-market assets that drive measurable business outcomes.

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