Why prompting is becoming a valuable business skill
Many people try an AI tool, receive an average response and conclude that it is not particularly useful. Often, the issue is not the technology. It is the instruction being provided.
The quality of an AI-generated output is heavily influenced by the quality of the prompt. Clearer instructions usually produce more relevant and useful results.
Treat AI like a new team member
Imagine asking a new employee to “write a report” without explaining the purpose, audience, background or desired outcome. The result would probably miss the mark. AI works in much the same way.
A good prompt tells the tool what it needs to know, what you want it to do and how the result should be presented.
Introducing the CATS framework
One practical way to improve AI results is by using the CATS framework, which breaks an effective prompt into four simple elements.
Imagine you’re a business owner preparing for an annual leadership planning day. You want to make the session productive, encourage meaningful discussion and leave with clear priorities for the year ahead.
Instead of asking AI: “Create an agenda for our planning day.” Try structuring your prompt using CATS:
| Context |
Provide the background. Example: “I own a privately owned professional services business with 25 employees. We’ve experienced strong growth over the last two years and are holding an annual leadership planning day to discuss opportunities, challenges and priorities for the coming year.” |
| Angle |
Tell AI what perspective to take. Example: “Act as an experienced workshop facilitator who works with growing Australian businesses.” |
| Task |
Be specific about what you need. Example: “Create a half-day leadership planning agenda that includes discussions on business growth, operational efficiency, team engagement, client experience and strategic priorities for the next 12 months.” |
| Style |
Specify how you would like the information presented. Example: “Present the agenda in a clear, practical format with suggested discussion questions and activities that encourage participation and action planning.” |
The result?
Instead of receiving a basic agenda, you’re more likely to receive a structured workshop plan tailored to your business goals and leadership team.
The more context you provide, the more useful the output becomes.
Why this matters
AI is particularly effective when helping organise information, structure ideas and create a starting point for discussion. It can save significant preparation time, allowing business owners and leaders to focus on what matters most: making decisions, setting direction and applying their experience and judgement.
The best results occur when AI is used to support thinking, not replace it.
AI is a conversation, not a one-off command
The first output does not need to be the final output. You can ask the tool to shorten the response, change the tone, include examples, identify gaps, test an assumption or adapt the content for a different audience.
Useful refinements include:
- Make this more concise and action-focused
- Explain this for a non-technical audience
- Identify any assumptions that need to be checked
- Provide two alternative approaches
- Keep the response under 200 words
Building AI capability across your business
As AI becomes part of everyday work, the ability to brief it clearly, assess its output and improve the result will become an increasingly valuable capability. The technology matters, but the advantage comes from knowing how to use it well.
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