AI Models & Technology

Chain-of-thought Prompting

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Definition

Chain-of-thought prompting is a prompt engineering technique in which a user or system explicitly instructs a large language model to reason step by step before delivering a final answer, often by including worked examples that demonstrate intermediate reasoning or simply appending phrases like "think step by step" to the input. Unlike Chain-of-Thought as an emergent model capability, chain-of-thought prompting is an elicitation method—a deliberate design choice in how queries are constructed to activate more careful, structured reasoning from the model.

For commerce and enterprise practitioners building AI-powered tools, chain-of-thought prompting is a practical technique to improve output quality without retraining or fine-tuning a model. When configuring an AI agent that evaluates product eligibility for a promotional bundle, a well-constructed chain-of-thought prompt instructs the model to first identify applicable rules, then check each condition in order, then summarize its conclusion—reducing errors from reasoning shortcuts. It is especially valuable in customer-facing decision tools, financial calculations, and compliance checks, where transparent, step-by-step reasoning both improves accuracy and provides an audit trail for review.

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Chain-of-Thought (CoT)Cost of Large Language ModelsFew-Shot / Zero-Shot PromptingFew-Shot Prompting
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Source

AI Best Practices for Commerce - Glossary
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Last updated: May 12, 2026