Many organizations are developing Generative AI (GenAI) applications using Retrieval-Augmented Generation (RAG) to connect Large Language Models (LLMs) with proprietary data, but these systems often suffer from a "stale context gap" due to reliance on batch-updated databases. This lag can be problematic in fast-moving domains where real-time information is crucial, such as e-commerce, finance, and logistics. To address this, a Real-Time Context Engine is proposed, which continuously processes events and maintains up-to-date views of the latest state, enhancing the situational awareness of AI agents. This engine works alongside Real-Time RAG by providing live data streams from various sources, enabling AI to act on the most current information. By integrating static knowledge from documents with dynamic state awareness, AI systems can deliver more responsive and informed interactions, closing the gap between knowledge and real-time action.