prompt template best practices promptlayer arize

Prompt Templates, Functions, and Prompt Window Management: Five Learnings From the Arize AI and PromptLayer Workshop

Shittu Olumide



Prompt engineering is a crucial discipline that bridges the gap between raw model capabilities and practical, real-world applications. Recently, an enlightening event by Arize AI and PromptLayer titled “Prompt Templates, Functions, and Prompt Window Management” provided invaluable insights into this rapidly advancing domain.

The speakers – Jared Zoneraich, Co-Founder of PromptLayer; Aparna Dhinakaran, Chief Product Officer and Co-Founder of Arize AI; and Jason Lopatecki, CEO and Co-Founder of Arize AI – guided participants through a journey that unraveled the iterative nature of prompt refinement, the structured functionality essential for streamlined operations, and the delicate balance required in managing the context window size, especially within frameworks like RAG. Delving into the nuances of evaluating prompt templates and other issues, the speakers illuminated critical facets of prompt engineering.

This article highlights my five key takeaways from attending the session, encapsulating the wisdom shared by the speakers and offering a deeper understanding of the evolving landscape of prompt engineering.

Background Concepts

For us to be able to effectively understand the details of prompt engineering, it is best to go back to the background and build the knowledge from the ground up. This section highlights key concepts like prompt, prompt templates, functions, and prompt window management.

What Is a Prompt?

A prompt is a set of instructions or inputs provided to a language model to generate specific output. It consists of text, queries, or context that guides the model’s response. It serves as the instruction or query given to the language model to produce desired text or content.

Prompt Templates

Prompt templates are structured frameworks or outlines used to guide the creation of prompts. They provide a standardized format for inputs to the language model. They might include placeholders, instructions, or guidelines to direct the language model.


User: What is the capital of France?
Context: Geography class discussing European capitals.
Model Response: The capital of France is Paris.


Prompt functions typically refer to predefined instructions or templates used to interact with large language models (LLMs) like GPT-3. These functions guide the LLM on how to process and respond to input prompts provided by users. There are two types of prompt functions – Structured prompts and Query-Based prompts.

Prompt Window Management

Prompt window management refers to the strategic handling, structuring, and optimization of the input prompts used to generate responses. The prompt window represents the text or input provided to the language model, shaping the context for the generated output.

Summary of the Event

The event centered around the intricate world of language model engineering, where the speakers highlighted key aspects essential for refining language models effectively.

The whole discussions shed light on the complexity and dynamic nature inherent in managing language models and prompt engineering. The need for a structured, systematic, and adaptive approach was emphasized to navigate these complexities successfully. The insights shared by the speakers provided valuable guidance for practitioners in the field of language model engineering, emphasizing the importance of experimentation, structured approaches, thorough evaluations, and vigilance in addressing drifts to optimize language models effectively.

Key Takeaways

1. Iteration is Key to Prompt Engineering

According to the discussion, perfecting prompt templates from the get-go is nearly impossible. Iteration is crucial: start with a basic prompt, refine it, and iterate through continuous testing. The concept of YOLOing prompts initially, followed by stepwise enhancements, resonated strongly. Experimentation, tweaking, and refining based on actual usage in a production environment were highlighted as essential.

Lopatecki noted: “Getting your prompt right the first time is almost impossible… You want to test different models, hyperparameters, and even nuances like temperature.”

The iterative nature of prompt engineering and importance of testing, experimenting, and iterating rapidly are paramount. This approach prioritizes hands-on exploration and refinement over theoretical conjectures.

2. The Importance of Understanding and Mitigating Drift

Keeping track of changes in user behavior, input data, new model releases, and evolving prompt templates can be important. Vigilance, systematic tracking, and proactive management of drift were emphasized to prevent regressions and maintain consistent performance.

Zoneraich highlighted: “Be systematic, operational, and understand things can go wrong. Track changes, and know when they occur.”

Zoneraich stressed the importance of systematic tracking and understanding of these drifts, which can impact prompt performance significantly. Monitoring changes in user behavior, data consistency, model updates, and prompt modifications are critical factors in ensuring prompt effectiveness over time.

3. Evaluation Tools and Methodologies are Evolving

The conversation shed light on the evolving landscape of evaluation tools and methodologies. While OpenAI Evals was acknowledged for model-focused evaluations, a distinct need for prompt template evaluations emerged. This shift in focus—evaluating how different prompt templates affect responses—indicates a growing need for specialized evaluation tools catering to prompt engineering.

Dhinakaran explained: “OpenAI Evals focuses on model comparisons. But in prompt engineering, we need to evaluate and understand the impact of different prompt templates.”

Dhinakaran distinguished OpenAI Evals and prompt template evaluations. While OpenAI Evals focuses on comparing different models based on metrics, prompt template evaluations concentrate on testing and comparing the effectiveness of various prompt templates. This distinction underscored the need for separate evaluations to track and gauge the efficacy of prompt structures apart from model performance.

4. Systematic Approach to Prompt Management

Tracking and versioning prompt templates, understanding cost and latency implications, and recording usage of variables were also highlighted as critical practices. Implementing a systematic approach to prompt management, akin to version control in software engineering, was underscored as crucial for effective prompt engineering.

Lopatecki shared: “Tracking prompt versions, cost, latency, and variable usage is key. Systematic tracking is crucial for prompt management.”

Lopatecki then delved into the significance of structured functionality, citing Pydantic as a valuable tool for defining functions efficiently through schemas. This emphasis on structured approaches streamlines the process of handling functional definitions, eliminating the need for manual indexing and ensuring a more organized and systematic approach.

5. Balancing Engineering Practice with LLMs

Bringing engineering practices into the nebulous realm of large language models emerged as a consistent theme. Emphasizing the need for engineering methodologies such as testing suites and observability to manage language models like RAG highlighted the importance of balancing technical prowess with language model application.

Lopatecki remarked: “Bringing engineering practices to prompts and understanding the intricacies of systems like RAG is crucial.”

Lopatecki discussed the importance of observability in RAG systems and highlighted the significance of parameterization. Understanding different chunking approaches, visibility into the system, and the tradeoffs in performance were identified as crucial factors necessitating dedicated sessions for deeper exploration.


In summary, prompt engineering demands a structured, adaptive, and systematic approach. It requires continual experimentation, structured functionality, keen observability, diligent evaluation, and a proactive stance against potential drifts. These insights serve as guiding pillars in navigating the complexities inherent in language models and prompt development, enabling a more informed and effective approach to harnessing the power of language AI.

Comments or questions for the speakers? Feel free to reach out in the Arize Community.