In Google AI Studio, prompt engineering focuses on crafting and honing the inputs provided to AI models in order to produce the desired results. Through the exploration of various wording and arrangements, developers can enhance prompts to boost the performance of the models, leading to more precise and pertinent responses. This practice is especially crucial when dealing with large language models, as the way a prompt is structured can greatly influence the output. Google AI Studio provides resources to support prompt engineering, simplifying the process for developers to generate effective prompts that deliver top-notch outcomes.