Dynamic grounding is preferred over static grounding when:

Dynamic grounding is preferred over static grounding primarily when the prompt is integrated with data from external systems. This approach allows for real-time or context-driven information to be utilized during interactions, leading to more relevant and accurate responses. By leveraging external data, dynamic grounding helps ensure the information provided is fresh and directly applicable to the user's inquiry or the task at hand.

In contrast, static grounding would rely on pre-defined data or responses that do not change, which may not reflect the most current or nuanced information available from external sources. Hence, when integrating prompts with external system data, dynamic grounding becomes crucial in enhancing the overall accuracy and responsiveness of interactions. This capability is especially significant in environments where timely and contextually appropriate data can influence decision-making and user experiences.