The Smart Context plugin enhances the ability to copy content from Obsidian for use with AI tools like ChatGPT. It allows users to copy entire folders or specific open files, including all linked content, to the clipboard. With advanced features such as excluding sections by heading (e.g., confidential content), it ensures only relevant material is shared. The plugin offers multiple commands, including options to copy content from visible files, all open files, or an entire folder. Notifications summarize the action taken, ensuring users have full control over the context provided to AI. This makes it easier to give AI tools a comprehensive understanding of a project or set of notes.