What is Chain Prompting in AI Grant Writing?

If you’ve ever used GPT-4, you’d probably agree that it performs many tasks with some superhuman proficiency! We’re talking about writing software like an MIT undergrad, speaking multiple languages fluently, and even generating stunning art beyond your imagination.

Yet, like every tech tool, its brilliance comes with odd imperfections and limitations. For example, while GPT-4 excels in complex coding, it falters with basic task planning or navigating the nuances of writing a cohesive grant application.

The reason for these inconsistencies lies in focus—or rather, the lack of it. AI doesn’t “think” the way humans do. As powerful as AI is, it needs structured guidance to break down complex tasks into manageable steps.

And of course, that guidance comes from a human - you, the grant writer! To get a high-quality result, you can’t simply feed AI a single prompt and expect perfection. Instead, you must guide the AI step-by-step, building each response off of the previous one.

This process is called “Chain Prompting” or “Chain of Thought” prompting. Think of it as a chain where every link strengthens the next, resulting in a cohesive and precise final output. For complex tasks like drafting a 50-page grant application, chain prompting with AI might require 100 or more sequential prompts, each forming a critical piece of the whole.

Interestingly, a study also reveals chain prompting to be an essential technique for getting the most out of AI, especially for tasks requiring precision, depth, and multi-layered responses. While this article provides a good overview, there’s more to chain prompting with AI! We created this resource for you to explore even further on this complex topic.

When to Chain Prompts with AI in Grant Writing

Having answered the question “What is chain prompting with AI?,” the next thing you’d want to know is when to apply this innovative technique to get outstanding results in your grant writing. From our research, we found that chain prompting with AI is best suited for tasks or questions that involve multiple steps or components. A great example is responding to grant questions with complex requirements, such as:

“Explain the marketing plan to make the project a success.”

Looks like a straightforward request, right? But answering it thoroughly involves several components such as:

• identifying the ideal customer profile,
• conducting a market analysis,
• analyzing competitors,
• outlining channels, and
• defining strategies.

Completing this request would take a grant writer several steps—and the same is true for AI. Each part of the response needs its own dedicated prompt, carefully linked to the others to ensure consistency and quality.

On the other hand, straightforward questions don’t usually require chain prompting. For example:

“Write a description of your nonprofit, including when it was founded, its location, its products, its customers, and industry trends impacting your business.”

This type of task asks for straightforward, fact-based information, which most AI models can handle with a single well-crafted prompt.

A good rule of thumb: If a task would take multiple people or several days to complete, it likely requires chain prompting with AI. Complex, layered tasks demand step-by-step guidance to ensure the AI produces a result that’s clear, coherent, and complete.

How to Build Prompt Chains With AI in Grant Writing

Building a successful prompt chain starts with breaking the answer into components. Think of these components as the sections or headings of a detailed answer. They’re like the building blocks of your response, and each one helps guide the AI toward creating a complete and coherent draft.

Let’s take an example: A grant might ask, “Explain the marketing plan to make the project a success.” At first glance, this feels like a single task. But if you think about it, a solid marketing plan has several components:

• Ideal Customer Profile
• Market Analysis
• Competitive Analysis
• Industry Analysis
• Marketing Channels
• Marketing Tactics
• Sales Strategy

Each of these sections is a separate component, and every one depends on specific questions being answered. For instance, to define your Ideal Customer Profile, the AI (or a human) needs to know: Who is your target audience? What are their key demographics, behaviors, and pain points?

Similarly, your Market Analysis might require data on industry trends, potential growth opportunities, or economic conditions. And your Marketing Tactics can’t take shape until you know your customers’ preferences and the channels they use. Looking technical? We get it. That’s why we built a training showing you how to build your own custom GPT in less than 20 minutes. You can get chain prompting with AI resource and the other must-have tools as a modern grant writer in this toolkit here.

Example Prompt Chain With AI: Writing a Killer Marketing Plan

Let’s walk through a real-life example of using chain prompting with AI to create a marketing plan. Think of it as solving a puzzle—one logical step at a time.

Step 1: Understand the Customer

Before you can market to anyone, you need to know who you’re marketing to. This is where we build an Ideal Client Profile (ICP). Think of it as a cheat sheet for understanding your audience—what they want, how they behave, and how to reach them.

Prompt:

This prompt sets the foundation for understanding the audience, and it’s the first “link” in the chain.

Step 2: Understand the Market

Now that you know who you’re targeting, the next question is: How big is this market? You need to determine how many ideal customers exist, how much value the market holds, and where growth opportunities lie.

Prompt:

By linking the Ideal Client Profile to the market analysis, you’re building a detailed view of the opportunity landscape. Thinking of mastering this concept? Dive into our resource to become a pro at chain prompting with AI today.

Step 3: Know the Competition

Once you understand the market, it’s time to look at who else is playing in the field. A Competitive Analysis helps pinpoint what competitors are doing well, where they’re vulnerable, and how you can stand out.

Prompt:

This step ensures that you’re not just responding to the market—you’re strategically positioning yourself within it.

Step 4: Choose the Best Marketing Channels

Now it’s time to decide how to reach your audience. Based on the Ideal Client Profile, market research, and competitive analysis, you’ll identify the top channels to focus your marketing efforts.

Prompt:

This prompt ties all the previous steps together, creating a well-informed and actionable marketing strategy.

Final Thoughts on Chain Prompting With AI

Chain prompting is more than just a technique—it’s a strategy for unlocking the full potential of AI. By breaking complex tasks into logical, manageable steps, you ensure that every response builds on the last, leading to higher-quality outputs that rival expert-level work.

Take the marketing plan example: Instead of overwhelming the AI with one massive prompt, you guided it through an AI-based chain of thoughts, from understanding the audience to selecting the best marketing channels. This structured approach not only produces better results but also mirrors how humans tackle intricate problems—with logic, focus, and creativity.

So, the next time you face a big, multi-layered challenge, remember that great outcomes come from a great process. Whether drafting a grant, conducting research, or crafting a strategy, chain prompting gives you the tools to turn AI into your most reliable collaborator.

So, what’s your next big project? Try our AI Toolkit to dive deeper into how to build prompt chains with AI today — you might be surprised by how much smarter AI can be with the right guidance.