Context management is a fundamental challenge in generative AI, directly influencing the coherence, relevance, and quality of AI-generated outputs. This paper explores the concept of context in generative AI, focusing on the difficulties models face in maintaining long-term, dynamic, and global context across interactions. Key challenges include context loss in long-term dialogues, balancing between immediate and overarching context, handling context switching in multi-turn conversations, and addressing ambiguity or incomplete context. Additionally, we examine the impact of contextual drift, scalability issues, and resource constraints. By understanding these challenges, we highlight the importance of developing more sophisticated context management techniques to improve AI's ability to generate consistent, relevant, and user-centered outputs. Finally, we discuss the implications of context management for various applications, including conversational AI, content generation, and personalized recommendations.