Most people using coding agents have no idea how they actually work. No magic, no sentience - just prompts, tools, context, and memory. Understanding that changes everything.

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Most developers using AI coding agents like Claude Code, Cursor, or Cline don't understand the core mechanics driving their behavior. Five fundamental concepts explain nearly all confusing agent behavior: (1) Everything is prompting — all agent behavior stems from text prompts, including system prompts you never see. (2) Tools are just JSON-described functions the model reads and decides to call. (3) Skills are user-defined tools stored as markdown files. (4) Memory is not persistent — context windows fill up and older content gets compressed away, which is why agents 'forget'; CLAUDE.md and MEMORY.md files solve this by loading at session start. (5) Context is everything — the agent only knows what's currently in its context window. Understanding these five concepts resolves the vast majority of frustrating agent behavior and helps users work with the tool rather than against it.

Five Things Your Coding AI Agent Wishes You Understood

2. Tools are just functions described in text