AI coding tools are shifting to a surprising place: the terminal

For years, code-editing tools like Cursor, Windsurf, and GitHub’s Copilot have been the standard for AI-powered software development. But as agentic AI grows more powerful and vibe-coding takes off, a subtle shift has changed how AI systems are interacting with software. Instead of working on code, they’re increasingly interacting directly with the shell of whatever system they’re installed in. It’s a significant change in how AI-powered software development happens – and despite the low profile, it could have significant implications for where the field goes from here.