
Agentic AI tools are popping up everywhere, and for good reason. You’ve probably heard the buzz around Claude Code from Anthropic, and let me tell you, it’s not just another coding assistant that finishes your sentences. It’s a totally different way of working with AI, shifting from simple code completion to something that feels more like a real conversation with a coding partner.
This guide is your one-stop shop for understanding what Claude Code is all about. We’ll walk through how it works, what it’s great at, and just as importantly, where it falls short. We’ll get into its core ideas, look at some practical workflows you can start using today, and touch on the real-world limitations you should know about. Plus, we’ll see how these agentic AI concepts are making their way out of the command line and into other parts of a business, like customer support.
What is Claude Code?
At its core, Claude Code is an AI-powered coding assistant that lives right in your terminal. Instead of being tucked away in a separate chat window or an IDE extension, it meets you where the work actually happens. The real magic is its ability to grasp the context of your entire codebase. This means it can handle complex, multi-file edits, run commands for you, and even manage your git workflow, all based on plain English prompts.
A screenshot from a Claude Code guide showing the AI assistant integrated directly into the command line terminal.
This is what makes it so different from tools like GitHub Copilot, which are fantastic but mostly stick to suggesting the next line of code. Claude Code is "agentic," which is a fancy way of saying it can take a high-level goal, break it down into a plan, and then execute the steps to get there. It’s also built with professional teams in mind, offering connections through Amazon Bedrock or Google’s Vertex AI for companies that need tight security and compliance.
The agentic mindset: How it thinks and works
To really get the hang of Claude Code, you have to change how you think about it a little. You’re not just asking for a chunk of code; you’re directing an assistant that can reason through a problem and take action on its own. Let’s pull back the curtain on the key pieces that make this new workflow tick.
The CLAUDE.md file: Giving your AI a project brain
The secret to Claude Code’s contextual smarts lies in a special file: "CLAUDE.md". Whenever you fire up a session, Claude gives this file a read to get the lay of the land. Think of it as a central instruction manual for your project. You can fill it with all sorts of useful info, like:
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Common bash commands for building or testing your app.
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Specific style guides, like "Always use ES modules, not CommonJS."
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Step-by-step instructions for running your test suite.
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Pointers to core files or important utility functions it should know about.
The real beauty of this is that you can load the AI up with project-specific knowledge right from the start, which saves a ton of back-and-forth and helps it avoid common mistakes. You can even check the "CLAUDE.md" file into your git repository, so the entire team gets the benefit of that shared context.
This idea of giving an AI a rulebook isn’t just for coding. It’s a powerful concept for any agentic AI. For example, platforms like eesel AI use a similar approach with a prompt editor and defined knowledge sources. This lets you shape an AI support agent’s personality, tone, and what it’s allowed to talk about, making sure its answers are not only right but also sound like they’re coming from your team.
Going beyond code: Using tools and external knowledge
Claude Code isn’t stuck just reading the files in your project. It can actually interact with your shell, use the "gh" command-line tool to talk to GitHub, and even connect to other services using something called the Model Context Protocol (MCP).
This unlocks some pretty wild multi-step tasks. For instance, you could say, "Read GitHub issue #1234, figure out what the bug is, write the code to fix it, and then open a pull request." It will actually use the "gh" tool to grab the issue details, poke around in your code, make the changes, and get the PR ready for you to review. This ability to use other tools is what truly makes it "agentic" and puts it in a different league from simpler AI assistants.
An image from our Claude Code guide demonstrating how the tool integrates with GitHub to manage issues and pull requests.
Practical workflows
Understanding the theory is great, but putting it into practice is what matters. Over time, the developer community has figured out a few ways of working with Claude Code that consistently get good results. Here are a couple of the most effective workflows you can try.
The "explore, plan, code, commit" workflow
This four-step dance is a solid way to approach almost any new feature or bug fix. It’s all about making the AI think before it starts typing, which usually leads to a much better outcome.
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Explore: First, ask Claude to simply read the relevant files and get a handle on the task without writing any code. Something like, "Familiarize yourself with the user authentication flow in "auth.js" and "userModel.js"."
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Plan: Next, have it create a step-by-step plan for how it’s going to solve the problem. You can even get it to think a bit harder by using prompts like "think" or "ultrathink," which tells it to take more time to weigh its options.
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Code: Once you’ve given the plan a thumbs-up, you can tell Claude to go ahead and implement it.
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Commit: Finally, just ask Claude to commit the changes with a clear message and open a pull request.
It’s so tempting to skip the planning step and jump right to the code, but that’s usually a mistake. Just like when you’re working with a human developer, taking a minute to agree on the approach upfront can save you a ton of headaches and rework down the line.
Test-driven development (TDD) and visual iteration
If you’re a fan of test-driven development, you’ll love Claude Code. Because it can run commands and read the output, it can get into a really tight feedback loop of writing and testing until the job is done.
Here’s how it usually goes:
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Ask Claude to write the tests for the feature you’re about to build. You’ll run them and see them fail, which is exactly what you want.
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Then, tell it to write the actual code that will make those tests pass.
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This is where the magic happens. Claude will iterate on its own, running the tests, seeing what fails, tweaking the code, and trying again until everything is green.
A screenshot for this Claude Code guide showing the diff view in VS Code, highlighting changes made by the AI during a TDD cycle.
You can use a similar trick for front-end work. You can give Claude a visual mock, like a screenshot from a design file, and ask it to write the code that matches it. It can even use tools like Puppeteer to take screenshots of what it’s building, compare it to your design, and keep iterating until it looks just right.
This video offers a complete Claude Code guide, covering best practices, strategies, and agentic workflows to help you get the most out of the tool.
The reality check: Pricing, limitations, and security
As cool as Claude Code is, it’s not going to solve all your problems with the push of a button. Before you dive in headfirst, it’s worth taking a look at the practical side of things, from what it costs to its built-in limitations.
Understanding the cost
When it first came out, one of the trickiest things was the cost. It was based on direct API usage, which could get unpredictable fast. Anthropic has since made things a lot easier by letting you use your Claude.ai subscription, which gives you much clearer pricing tiers.
Plan | Price (Monthly) | Key Features Relevant to Claude Code |
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Free | $0 | Limited usage, perfect for just kicking the tires. |
Pro | $20/month | More usage, lets you use Claude Code in the terminal. |
Max | From $100/month | 5x or 20x more usage than Pro, early access to new stuff. |
The subscription model is a big step up, but you still have to remember that it’s a per-user cost. As some developers have pointed out, if you’re a heavy user on the Max plan, it can still add up to a decent chunk of change for one person or a small team.
This per-user model is pretty standard for developer tools, but it’s a different story when you’re thinking about a tool for your whole company. For instance, eesel AI has transparent, team-based pricing without charging you for every ticket it solves. This makes your costs predictable, even if your support team has a crazy busy month.
Common limitations and challenges
After spending some time with it and listening to what other users are saying, a few common quirks have become clear:
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It’s not always a perfect listener: Claude Code doesn’t always follow instructions to the letter. Sometimes it might seem to forget the context from your "CLAUDE.md" file or something you said earlier in the conversation, and you’ll have to repeat yourself.
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You need to be the navigator: It works best as a "pair programmer," not as a coder you can leave on its own. You need to be there to guide it, catch its mistakes, and make sure it doesn’t wander off track. It’s definitely not a set-it-and-forget-it kind of tool.
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Setup can get complicated: The basic setup is pretty straightforward, but if you want to unlock its full power with things like MCP servers and custom slash commands, you’ll need to roll up your sleeves and do some real engineering work.
These kinds of challenges are pretty normal for powerful, developer-focused tools. But for something like customer support, that level of constant hand-holding and complex setup just doesn’t work. That’s why a tool like eesel AI is built to inspire confidence right away. It has a powerful simulation mode that lets you test the AI on thousands of your past tickets, so you can see exactly how it will perform before it ever talks to a real customer. You can then ease into it, rolling it out for specific types of tickets first, which makes the whole process smooth and risk-free.
Is it the right agent for you?
Claude Code is an amazing tool for developers who are ready to jump into the agentic way of working. It can seriously speed up development, help you get your head around complex codebases, and take care of the boring, repetitive parts of the job. It really comes to life when you treat it like a smart collaborator, a junior developer who’s incredibly fast but still needs clear instructions and a bit of oversight.
At the end of the day, though, it is a developer tool. It demands some technical know-how, a bit of patience, and a hands-on approach to steer the AI toward the best solution.
The ideas behind agentic AI are definitely powerful, but they have to be used in the right place. Claude Code brings that power to the command line for software development. For business teams who want to use that same agentic power for customer support, without all the engineering overhead, a purpose-built platform is the way to go. eesel AI offers a simple, self-serve way to build AI agents that can handle frontline support, draft replies, and sort tickets, getting you up and running in minutes, not months.
Frequently asked questions
Claude Code is an AI-powered coding assistant that operates directly within your terminal, understanding your entire codebase. It helps developers with complex, multi-file edits, executing commands, and managing Git workflows based on natural language prompts.
Unlike simple code completion tools, Claude Code is "agentic," meaning it can break down high-level goals into plans and execute multiple steps. It interacts with your shell and external tools to accomplish comprehensive tasks, making it more of a coding partner.
The "CLAUDE.md" file serves as a central instruction manual, providing Claude Code with critical project context from the start. It can contain commands, style guides, test instructions, and pointers to core files, improving the AI’s understanding and reducing rework.
The guide suggests workflows like "Explore, Plan, Code, Commit" and Test-Driven Development (TDD). These emphasize making the AI think through problems, create plans, and iterate on code based on testing feedback for better outcomes.
Users might find that Claude Code doesn’t always follow instructions perfectly or may forget context, requiring repetition. It also demands continuous human guidance as a "pair programmer" rather than an autonomous coder, and advanced setup can be complex.
Claude Code is accessible via Claude.ai subscriptions (Free, Pro, Max plans), offering clearer pricing tiers than direct API usage. While an improvement, it’s a per-user cost, which can become significant for heavy users or larger teams, requiring careful budgeting.
Claude Code is presented as a smart collaborator, or a "junior developer" who is incredibly fast but still needs clear instructions and oversight. It is not designed to replace human developers but to augment their capabilities and speed up development.