Chain of thought is prompting a model to work through a problem step by step before giving its answer, which improves accuracy on anything that needs reasoning.
Ask a model for just the answer to a multi-step problem and it often guesses. Ask it to show its working first, and the accuracy jumps, because generating the intermediate steps keeps it honest, much like a student showing their work.
In production we use it where reasoning matters and hide the working from the user, keeping only the final, checked answer. It costs more tokens, so it is applied where it earns its keep, not everywhere.
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