From Language Models to Problem Solvers: The Rise of In-Context Learning in AI’s Problem-Solving Journey


In-context learning is a technique used to improve language models' performance in handling contextual information by incorporating additional context during the training phase. In-context learning empowers language models with enhanced understanding of context, improved reasoning and inference skills, and tailored problem-solving capabilities. Chain-of-thought prompting is a widely used technique in in-context learning that helps language models understand context and think logically by following a chain of related examples. In-context learning has real-world applications in decision support systems, legal and policy analysis, mathematical problem solving, and content generation.

Language models are AI algorithms created to empower computers in understanding and generate human language. They are like smart language learners that learn from lots of written text and become proficient at predicting the next words or phrases in a sentence. By analyzing patterns and characteristics of the written language, these algorithms acquire the capability to generate meaningful text according to the given context.


Language models are extremely valuable in a wide variety of AI applications, such as language translation, chatbot development, sentiment analysis, and text generation.

Limitations of Language Models

Despite their capabilities, language models have limitations, especially in problem-solving tasks. These limitations arise from their reliance on existing data and lack of common-sense knowledge. As a result, they struggle with novel or uncommon scenarios that require contextual understanding or common-sense reasoning.


For instance, they find it hard to comprehend mathematical word problems and make logical inferences beyond surface-level associations. They also encounter issues with ambiguity and multiple-word meanings, leading to technically correct but semantically inconsistent responses.

Additionally, their limited understanding of context can cause them to provide responses that don’t match the desired tone or style. Moreover, they face challenges in maintaining coherent and logical discussions during ongoing conversations.

These challenges, however, can be addressed by incorporating contextual information. A commonly used technique to incorporate this information is known as in-context learning.


In-Context Learning

In AI, in-context learning refers to the process of pre-training or fine-tuning language models on specific tasks to improve their performance in handling contextual information. It involves incorporating additional context during the training phase to enhance the models’ understanding of specific situations.

By fine-tuning models on task-specific or domain-specific data, in-context learning helps the models to develop a deeper understanding of context, improve reasoning abilities, and handle real-world complexities.

This approach enables language models to generate more accurate and contextually relevant responses, thereby enhancing their problem-solving capabilities.

In-Context Learning in Language Models

In-context learning in language models, also known as few-shot learning or few-shot prompting, is a technique where the model is presented with prompts and responses as a context prior to performing a task. For example, to train a language model to generate imaginative and witty jokes.

We can leverage in-context learning by exposing the model to a dataset of joke prompts and corresponding punchlines:

  • Prompt 1: “Why don’t scientists trust atoms?” Response: “Because they make up everything!
  • Prompt 2: “What do you call a bear with no teeth?” Response: “A gummy bear!”
  • Prompt 3: “Why did the scarecrow win an award?” Response: “Because he was outstanding in his field!”

By training in different types of jokes, the model develops an understanding of how humor works and becomes capable of creating its own clever and amusing punchlines.

In-context learning was primarily proposed as an alternative to fine-tuning a pre-trained language model on a task-specific dataset as it offers several advantages over it. Unlike fine-tuning, in-context learning does not involve updating the model parameters, which means that the model itself does not learn anything new. In-context learning, however, employs prompts to prime the model for subsequent inference within a specific conversation or context.

This approach has two main benefits: it requires less task-specific data and reduces the risk of overfitting by avoiding narrow learning from a limited fine-tuning dataset. In fact, in-context learning enables large language models to demonstrate competitive few-shot performance on a variety of natural language processing (NLP) tasks, including translation and question-answering.

The development and optimization of such few-shot prompts are now falling under the active field of study known as prompt engineering.

How In-Context Learning Empower Language Models with Problem-Solving Abilities

In-context learning empowers language models to adapt to the requirements of specific tasks or problem domains, which allows them to provide tailored solutions. It facilitates the integration of domain-specific knowledge, improving the models’ comprehension of specialized fields and their ability to reason and make inferences within those domains.

Some of the ways in which in-context learning empowers language models with problem-solving abilities are mentioned below.

Enhanced understanding of context: In-context learning empowers language models with additional contextual information specific to the problem domain. This information helps models improve their understanding of the complexities and nuances of real-world contexts. This allows them to generate more accurate and contextually relevant responses.

Improved reasoning and inference: In-context learning empowers models to perform logical reasoning and inference, leading them to solve complex common-sense reasoning and mathematical problems.

Tailored problem-solving capabilities: In-context learning enables language models to integrate domain-specific knowledge during the training process. This integration equips the models with specialized knowledge and problem-solving strategies relevant to specific domains. Consequently, they become better equipped to handle practical challenges, provide relevant insights, and offer tailored solutions to specific problem types.

Interpretable solutions: In-context learning empowers language models to offer step-by-step reasoning of their working process. This capability allows language models not only to solve word problems but also to extend their abilities to generate comprehensive step-by-step solutions for such problems.

Chain-of-Thought Prompting

Chain-of-thought prompting is a widely used technique in the field of in-context learning. In this technique, we train language models by providing them with a series of prompts and corresponding responses that are interconnected. It allows the models to understand the context and think logically by following a chain of related examples. An example of chain-of-thought prompting to solve a word problem of mathematics is given below:

  • Prompt 1: “You are planning a party and need to order pizzas. Each pizza has 8 slices. If you expect 20 guests and want each person to have at least 2 slices, how many pizzas should you order?” Response: “To calculate the number of pizzas needed, we divide the total number of desired slices by the number of slices per pizza. So, 20 guests x 2 slices per guest = 40 slices.”
  • Prompt 2: “Each pizza has 8 slices; how many pizzas would be required to provide 40 slices?” Response: “To determine the number of pizzas required, we divide the total number of slices needed by the slices per pizza. So, 40 slices / 8 slices per pizza = 5 pizzas.”
  • Prompt 3: “Considering that pizzas are typically sold as whole units, would you need to round them up or down?” Response: “Since pizzas are sold as whole units, we round up to the nearest whole number.”

Therefore, you should order 5 pizzas to ensure that each guest receives at least 2 slices. “Pizzas to ensure that each guest receives at least 2 slices.”

Given a bunch of such chain-of-thought examples, we can improve the abilities of language models to solve math word problems.

By providing prompts in this way, the language model learns to build upon previous information and generate more coherent and contextually relevant responses. It learns to decompose complex problems into smaller subproblems and understands the relationships between them.

Real-World Applications

In-context learning has empowered language models in various real-world applications. Some of these applications are as follows:

Decision Support Systems

In-context learning can turn language models into decision support systems in fields such as healthcare and finance. By considering a series of interconnected factors and their implications, in-context learning can provide more informed recommendations and assist in complex decision-making processes.

Legal and Policy Analysis

In-context learning has shown advancements in legal and policy analysis. Language models can now follow the logical flow of legal arguments, analyze precedents, and generate coherent legal documents. They can assist lawyers and policymakers in reasoning through complex cases and formulating well-founded arguments.

Mathematical Problem Solving

In-context learning has significantly improved the performance of language models in solving mathematical problems. Techniques like chain-of-thought prompting enable the models to generate step-by-step solutions that mimic human reasoning processes.

Using in-context learning, language models learn to divide complex problems into simpler steps which leads them to produce more accurate results.

Content Generation

In-context learning has enabled language models to generate more coherent and contextually relevant content. Whether they are writing articles, product descriptions, or personalized emails, these models can utilize the context provided to generate high-quality and engaging text.

Challenges of In-context Learning

Despite many advantages, in-context learning brings about a few challenges to deal with.

Ambiguity and Interpretation

Although in-context learning is simple to apply, the flexibility of this approach can pose challenges in explaining the given context to language models. This is due to the inherent ambiguity of language, which makes it difficult for models to understand the precise meaning and context behind the input. This can lead to potential inaccuracies in their understanding of the context and subsequent responses.

Domain-Specific Knowledge

Effective in-context learning requires access to domain-specific knowledge and problem-solving strategies. Incorporating specialized knowledge and ensuring models can utilize appropriately can be challenging, especially in complex domains.

Transparency and Explainability

While in-context learning empowers models to generate step-by-step solutions, ensuring transparency and explainability becomes crucial. Users need to understand the reasoning processes employed by the models and have confidence in the accuracy and reliability of the generated solutions.

The Bottom Line

In-context learning equips language models with the capability to understand and generate human language by incorporating contextual information. It enhances their problem-solving abilities by improving their understanding of context, reasoning and inference skills, and integration of domain-specific knowledge.

However, challenges such as ambiguity and interpretation, transparency and explainability, and domain-specific knowledge pose obstacles to the effective application of in-context learning.

Overcoming these challenges is essential to unlock the full potential of language models in various real-world applications.


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Dr. Tehseen Zia

Dr. Tehseen Zia has Doctorate and more than 10 years of post-Doctorate research experience in Artificial Intelligence (AI). He is Tenured Associate Professor and leads AI research at Comsats University Islamabad, and co-principle investigator in National Center of Artificial Intelligence Pakistan. In the past, he has worked as research consultant on European Union funded AI project Dream4cars.