Agent Skills: On-the-fly capabilities for your AI Agents
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Agent Skills: On-the-fly capabilities for your AI Agents
Last updated on January 23, 2026
Agent Skills are the new boom. If you’ve been following the agentic AI space since late 2025, you’ve likely noticed a shift. Previously, we spent most of 2024 and 2025 obsessing over tools—giving LLMs calculators, database access, and API keys. But giving a new employee a laptop and a login doesn’t make them productive. You still have to train them. For example, you have to show them how your organization works. That is exactly what Claude Agent Skills are.
Released by Anthropic in October 2025, Agent Skills have quietly become one of the most powerful features in the Claude ecosystem, and are now even expanding as an open standard across other toolings. In fact, this is perhaps even more significant than the Model Context Protocol (MCP) for everyday developers.
In this deep dive, we’ll break down what Agent Skills are, how they differ from MCP, and why Simon Willison, the creator of Django, called them: maybe a bigger deal than MCP.
What Exactly Are Agent Skills?
Think of a Skill as an onboarding manual for Claude.
Technically, a Skill is just a folder. To illustrate, inside that folder is a SKILL.md file (containing instructions and metadata) and any supporting files (templates, Python scripts, PDFs).
When you equip Claude with a Skill, you aren’t forcing it to read that entire folder immediately. Instead, Claude uses a technique called Progressive Disclosure:
Discovery: At startup, Claude only reads the metadata (Name and Description) of your skills. It knows what skills it has, but not how to do them yet.
Activation: When you ask a question that matches a skill’s description (e.g., “Generate a weekly report”), Claude dynamically loads the full SKILL.md and related files into its context.
Execution: Claude follows the procedure you defined to complete the task.
Consequently, this solves the Context Window Bloat problem. You can have a library of 50 different skills (Git operations, AWS deployment checks, Brand Voice guidelines), but Claude remains fast and cheap because it only learns the specific skill it needs for the moment.
Before Skills, developers relied on System Prompts—massive walls of text pasted into every single API call to define the agent’s behavior.
This approach had three fatal flaws:
Token Hemorrhaging: Sending a 2,000-word style guide with every request cost money and burned through rate limits, even if the user just said “Hello.”
Attention Dilution: When an LLM is given 50 instructions at once, the “Lost in the Middle” phenomenon occurs. The model prioritizes the beginning and end of the prompt, often forgetting the nuanced rules buried in the center.
Latency Spikes: Processing a massive system prompt takes time (Time to First Token), making chat interfaces feel sluggish.
Agent Skills implicitly use Anthropic’s Context Caching. By keeping skills in a directory structure, the Router (the lightweight model deciding which skill to use) operates on negligible tokens. Only when the specific SKILL.md is loaded does the heavy lifting occur.
This architecture mimics human cognitive load management. A senior engineer doesn’t keep the entire AWS documentation in their working memory at all times. They keep an index in their memory (“I know where to look this up“) and only load the specific page when needed. Agent Skills give Claude that same distinct ability to separate Index from Content.
The Big Question: Agent Skills vs. MCP
Since the launch of the Model Context Protocol (MCP), there has been confusion about when to use what. Here is the simplest way to distinguish them:
MCP is for Connecting: It gives Claude eyes and ears. It connects Claude to a PostgreSQL database, a Slack channel, or a local file system. It is the “plumbing.”
Agent Skills are for Experties: They give Claude procedural knowledge. They teach Claude the process of how to write a SQL query that matches your company’s naming conventions, or how to format a Slack message so it doesn’t annoy your boss.
Sills are conceptually simple—and that’s their superpower. You don’t need to run a local server (like you do with MCP). You just drop a folder into your repository.
How to Build Your First Agent Skill
Creating a skill is easy and straightforward; it’s just Markdown.
Let’s say you want a skill that ensures every Python script Claude writes includes type hints and follows specific linting rules.
---
name: Python Best Practices
description: Use this skill whenever the user asks for Python code. It ensures code is type-hinted and PEP8 compliant.
---
# Instructions
When writing Python code, you must adhere to the rules defined in `linting-rules.txt`.
1. Always use Python 3.12+ type hinting.
2. Include docstrings for every function.
3. Before outputting the final code, cross-reference it with the attached linting guide.
That’s it. Now, whenever you ask Claude to write a script, it sees the description. Use this skill whenever the user asks for Python code, loads the rules, and produces compliant code automatically.
To identify more applicable skills we developers can integrate into our workflow, let’s go through the following discussion.
While a simple text file works for basic tasks, production-grade Agent Skills require a more robust structure. The most effective skills utilize XML tagging (which Claude is optimized to parse) and multi-file dependency injection.
Here is the anatomy of a “Senior” level skill.
The Variable Injection Pattern
Hard-coding values into your SKILL.md limits reusability. Instead, use placeholder variables that Claude can infer from the conversation context or ask the user to clarify.
Example SKILL.md for a cold-email generator:
# Instructions
You are an expert copywriter. You will draft a cold email based on the {{TARGET_AUDIENCE}} and {{VALUE_PROPOSITION}}.
<steps>
1. Analyze the user's input to identify the {{TARGET_AUDIENCE}}. If missing, ask the user to define it.
2. Review the attached `successful_examples.json` to match the tone.
3. Draft the subject line using the "Curiosity Gap" framework.
</steps>
The Context Library Strategy
A single Markdown file often isn’t enough. You can create a “Library” subfolder within your skill to hold reference materials.
In your SKILL.md, you reference these specifically:
“When analyzing liability clauses, cross-reference the text against reference/risk-matrix.csv. If the liability cap exceeds $1M, flag it as ‘High Risk’ immediately.“
XML Guardrails
Natural language is ambiguous. To ensure your Agent Skill behaves deterministically, wrap critical logical constraints in XML tags. Anthropic’s models are fine-tuned to assign higher attention weights to content within rule or critical tags.
<critical_rules>
- NEVER output API keys or PII (Personally Identifiable Information).<br />
- IF the user asks for financial advice, output the standard disclaimer located in `disclaimer.txt`.<br />
- ALWAYS output the final code block in a copy-able artifact window.<br />
</critical_rules>
The “Agent Skills Chain” Workflow
One of the most powerful capabilities of Agent Skills is Skill Chaining. This occurs when one skill’s output becomes the trigger for another skill.
For example, you might have:
Researcher Skill: Scrapes web data and summarizes findings.
Writer Skill: Takes summaries and turns them into blog posts.
You don’t need to manually orchestrate this. If you ask Claude: “Research the latest React 19 features and write a blog post about them“, its discovery mechanism will see both skills. It will formulate a plan to execute the Researcher Skill first, hold the context, and then activate the Writer Skill.
To optimize for this, ensure your SKILL.md descriptions clearly state their inputs and outputs.
Bad Description: “Helps with writing”
Good Description: “Accepts raw technical summaries and converts them into SEO-optimized blog posts in Markdown format”
Agent skills for DevOps & Cloud Engineers
For those of us living in the cloud, Agent Skills are essentially GitOps for AI Behavior.
Because Skills are just files, you can check them into your version control systems.
Team Consistency: Commit a infrastructure-deployment skill to your team’s repo. Now, every engineer using Claude Code gets the exact same Terraform tagging standards automatically.
Compliance: Create a security-audit skill that forces Claude to check for open S3 buckets whenever it reviews CloudFormation templates.
Agent skills as an open standard, and adoption
What began as a specific feature within the Claude ecosystem has rapidly matured into an industry-wide open standard. Much like how the adoption of Model Context Protocols (MCP), similarly by Anthropic, is now universally present across your favored IDEs and tooling, the Agent Skill Standard is now standardizing how AI agents ingest procedural knowledge.
Because Agent Skills rely on universal formats—Markdown for instructions and standard directory structures for organization—they have transcended Anthropic’s platform. The industry is moving toward a Write Once, Run Anywhere model for AI behaviors. A well-crafted SKILL.md creates a portable definition of a task that isn’t locked to a specific model provider or interface. Whether the underlying LLM is Claude 4.5 Sonnet, GPT-5, or an open-source model via Ollama, the process defined in your skill remains the single source of truth.
This shift is critical for enterprise adoption. It means companies can build a repository of Corporate Operating Procedures as Agent Skills without fearing vendor lock-in.
A Prime Example: VS Code Integration
We are already seeing the immediate benefits of this standardization in developer tooling. In its latest release, Visual Studio Code has launched a preview feature that natively supports the Agent Skill standard.
Because the standard is open, VS Code didn’t need to build a custom Microsoft version of skills. Instead, the IDE can simply parse the same .claude/skills (or the vendor-agnostic .agentskills) directory you already use. This allows developers to invoke their custom skills directly within the editor—applying linting rules, generating boilerplate, or running tests—without ever leaving their coding environment.
This is just the first wave of tools adopting the standard, bridging the gap between chat interfaces and local development environments. Similar to how the creation of MCP prompted a quick adoption across the developer ecosystem and tooling.
Conclusion
We are moving past the era of generic Chatbots. An era of Specialized Agents, with the addition of skills to agents’ tools. A phase where, if we do not need an explicit specific model for a specific niche of a task, but rather we just have to provide the capabilities, through skills, to provide the model the expertise on how to accomplish that task?
Anthropic’s decision to use a simple file-system approach for Agent Skills makes them accessible to anyone who can write a README file. While MCP handles the heavy lifting of data connections, Agent Skills handle the nuance of how work actually gets done.
If you haven’t started curating your own skills folder yet, now is the time to start!
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Written by: Duncan Bandojo
Duncan F. Bandojo is a undergraduate of Computer Science at Polytechnic University of the Philippines, with an interest in backeend development and geospatial data analysis, and is currently diving into frontend development. He is passionate about building applications that leverage visual data (geospatial) to provide visual insights that genuinely helps people.
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