VS Code Live: Agent Mode Day Highlights

🎙️ Featuring: Olivia McVicker, Cassidy Williams, Burke Holland, Harald Kirschner, Toby Padilla, Rob Lourens, Tim Rogers, James Montemagno, Don Jayamanne, Brigit Murtaugh, Chris Harrison.

What is Agent Mode?

Agent Mode in VS Code represents a leap beyond traditional AI code completion. Instead of simply suggesting code snippets, Agent Mode empowers the AI to:

• Write, edit, and iterate on code
• Run terminal commands autonomously
• Fix its own mistakes during the workflow
• Interact with external tools, APIs, and services

This creates a more dynamic, "agentic" coding partner that can automate complex tasks, reduce manual intervention, and keep developers in their flow. Agent Mode is accessible directly in VS Code and integrates seamlessly with GitHub Copilot, making advanced AI capabilities available to developers of all levels.

1. Model Context Protocol (MCP)

MCP is an open protocol that standardizes how applications provide context to Large Language Models (LLMs). This protocol acts as a bridge, allowing AI agents in VS Code to securely connect with a vast ecosystem of tools, APIs, and internal resources—well beyond what’s available out-of-the-box.

Key Points about MCP:

• Ecosystem Approach: MCP enables developers to connect Copilot and other agents to everything they need—internal documentation, databases, design tools like Figma, and more—by exposing these resources as MCP servers.
• Open and Extensible: Similar to the Language Server Protocol (LSP), MCP allows anyone to build and share new integrations. There are already thousands of MCP servers available, and building your own is straightforward with SDKs in major languages.
• Tool Chaining: MCP servers can be composed together, allowing the AI to automate workflows involving multiple tools—like fetching data, updating issues, or running tests—without manual intervention.
• Secure and Evolving: The protocol is evolving to support more secure authentication (moving from local API keys to OAuth-based flows) and easier discovery and installation, making it safer and more user-friendly.

2. Next Edit Suggestions (NES)

Next Edit Suggestions (NES) is a feature designed to enhance editing experience by providing context-aware recommendations for code changes. NES helps developers by:

• Suggesting relevant edits based on the current code context
• Supporting tasks like refactoring, bug fixing, and feature additions
• Allowing developers to focus on logic and architecture rather than syntax

NES works hand-in-hand with Agent Mode, letting developers quickly accept, undo, or iterate on AI-generated changes, all while maintaining control and oversight of their codebase.

3. Bring Your Own Key (BYOK): Custom AI Model Integration

Bring Your Own Key (BYOK) allows users to connect their own API keys for custom AI models, including those from OpenAI, Anthropic, or even local models via platforms like Olama. With BYOK, developers can:

• Choose from a variety of AI models, including the latest GPT-4o Mini and Claude 3 Opus
• Integrate local or cloud-based models for privacy, cost, or performance reasons
• Tailor the AI experience to their specific needs and preferences

This flexibility ensures that developers are not locked into a single provider and can experiment with the latest advancements in AI as soon as they become available.

4. The Agentic Future

A preview of "Project Padawan" demonstrated how agentic workflows could soon run asynchronously in the cloud. Developers will be able to assign tasks to Copilot (such as resolving GitHub issues), which will autonomously create pull requests, run tests, and iterate on feedback—all while the developer focuses on other work.

GitHub Copilot Skills Challenge

Want to learn and experiment with GitHub Copilot's Agent Mode while earning a Digital Badge? Join the GitHub Copilot Skills Challenge—a hands-on learning experience on Microsoft Learn where you'll build a Python app using Agent Mode through a guided tutorial. Complete the challenge by April 30, 2025, to earn your badge!

• Check out the official rules: https://aka.ms/csc/terms
• Register to the Challenge: https://aka.ms/csc/githubcopilot
• Request your badge at https://aka.ms/getyourbadge
  
  

Getting Started

Enable Agent Mode—available in both stable and insiders builds—to start experimenting with advanced AI capabilities, and explore MCP Integrations by browsing the growing list of servers or building your own with the available SDKs.

Want to see these features in action? Watch the full stream for live demos, expert tips, and save the date for the next episode of our VS Code Live series: https://aka.ms/VSCode/Live

Happy Coding!