This lesson will explore how Cursor compares to traditional code editors and what makes it different from other AI-powered tools. We’ll also walk through its key capabilities to understand how it fits into our workflow and why it’s gaining adoption among developers.

By the end of this lesson, we’ll be able to:

  • Describe what Cursor is and how it builds on Visual Studio Code.

  • Understand the role of AI models in Cursor’s code assistance.

  • Compare Cursor with other tools like GitHub Copilot and Windsurf.

  • Identify the core features that make Cursor a modern development environment.

  • Recognize when and why developers are choosing Cursor in real-world teams.

What is Cursor?

Cursor is an AI-powered desktop code editor built on the open-source version of Visual Studio Code. It preserves the core experience of VS Code, including file navigation, the command palette, settings, and extension support. In addition, it adds integrated AI features to assist with everyday coding tasks.

These features include natural language code generation, context-aware completions, inline explanations, automated refactoring, and a built-in assistant that understands the project we are working on.

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By combining the reliability of VS Code with intelligent AI tools, Cursor gives us a more productive and less repetitive way to write and maintain code.

Behind the scenes, Cursor connects to large language models (LLMs) to enhance its AI features, and we can select which models to use. We are not locked into a single provider. Whether GPT-4, Claude, Gemini, or a self-hosted model, Cursor supports flexible configuration based on our preferences for performance, privacy, latency, or cost.

These models enable Cursor’s intelligent features, such as code generation, explanation, refactoring, and in-context chat, all tailored to the project we’re working on. We’ll learn how to select and manage models in the next lesson, but it’s helpful to know up front that Cursor gives us full control over the AI engine behind our workflow.

Security and privacy: Privacy Mode disables external API calls for code, ensuring nothing leaves your local environment. This supports strict enterprise data policies and local-only workflows.

Why should developers care

As developers, we spend much of our time on tasks like writing boilerplate, debugging tricky errors, or restructuring messy functions. Traditional editors like Visual Studio Code help with syntax highlighting, basic autocompletion, and file navigation, but they leave most of the heavy lifting to us.

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AI-assisted coding makes development faster and less frustrating compared to traditional methods
AI-assisted coding makes development faster and less frustrating compared to traditional methods

Cursor changes that. It uses AI to understand our code in context and assist with real development work. Instead of just editing text, we get a coding partner that helps us write, fix, and improve code more efficiently.

Here’s what makes Cursor worth our attention:

  • Faster coding: High-quality, context-aware suggestions that speed up development.

  • Fewer bugs: AI-assisted debugging that helps catch issues earlier.

  • Cleaner code: Automated refactoring that keeps projects maintainable.

  • Clarity: Quick explanations for unfamiliar or complex logic.

  • More focus: By automating repetitive tasks, we can concentrate on what matters.

For example, instead of manually rewriting a long function, we can ask Cursor to suggest a cleaner version, break it into smaller parts, or even generate docstrings to make it easier to understand.

To see the difference more clearly, here’s how common tasks compare between a traditional editor and Cursor:

VS Code vs. Cursor

Task

In VS Code

In Cursor

Refactor a long function

Manually rewrite and test changes

Ask AI to restructure and improve logic

Debug an unknown error

Search Stack Overflow or try print/debug

Ask Cursor to explain and troubleshoot in place

Write boilerplate code

Use snippets or copy from examples

Describe in plain English and generate with AI

Add documentation

Manually write docstrings and comments

Use AI to generate context-aware summaries

Navigate codebase

Use file explorer or fuzzy search manually

Ask AI to locate functions or features across files

Manage version control

Use Git panel for commits and history

Use Git with AI assistance, including commit summaries and diff explanations

Write or update tests

Write tests manually or use snippets

Ask AI to generate or refactor test cases with full context awareness

Developer preference

VS Code widely adopted

In a 2025 report from Blott Studio, 83% of developers in trials preferred Cursor over other AI tools

A study by GitHub showed that developers using Copilot completed tasks 55.8% faster than those without AI assistance. While no equivalent study exists for Cursor, developers often report improved productivity and satisfaction when using it to plan, write, and debug code. Cursor’s tight integration of chat, inline editing, and project-wide context is especially helpful in large or multi-file projects.

Instead of switching between tools, tabs, and mental modes, Cursor lets us handle these tasks directly in the editor with natural language and smart suggestions. It’s a practical upgrade that reduces repetitive effort, speeds up development, and helps us stay focused on the work that matters.

How Cursor compares to other AI coding tools

Before we explore Cursor’s core features, it’s helpful to see how it compares to other popular AI tools developers might already know, particularly GitHub Copilot and Windsurf. While all three offer AI assistance for coding, they differ in how they are integrated, the depth of features, and the flexibility they offer.

Feature / Focus

Cursor

GitHub Copilot

Windsurf

Editor integration

Cursor is a standalone desktop application built on a customized fork of open-source VS Code. It operates as a full-featured code editor with native AI capabilities.

GitHub Copilot is an extension that integrates into existing editors such as VS Code, JetBrains IDEs, and Neovim. It does not function as a standalone editor.

Windsurf offers both a VS Code extension and its own standalone editor, which is also based on a fork of VS Code. The editor includes deeper AI integration than the plugin.

AI capabilities

Cursor supports a wide range of AI-assisted features including in-editor chat, natural-language code edits, inline refactoring, function explanations, test generation, and a powerful agent mode that can autonomously perform complex coding tasks under developer supervision.

Copilot provides code autocomplete and an AI chat interface (Copilot Chat) that supports code explanations, debugging help, test writing, and terminal queries. Recent updates have introduced limited agent-like workflows in VS Code.

Windsurf combines code suggestions with an AI chat assistant capable of explaining, generating, and refactoring code. It also includes “Cascade,” an agent-based system that can perform large, multi-step code modifications across files.

Context awareness

Cursor automatically indexes the entire project, giving its AI full awareness of code across all files and folders. This allows accurate, context-rich answers and transformations based on the entire codebase structure.

GitHub Copilot Chat also automatically indexes the entire repository when working in supported editors like Visual Studio Code, enabling it to understand the full project structure and logic across files.

Windsurf also uses a project indexing system that gives its AI access to the full codebase, enabling advanced multi-file understanding, consistent edits, and context-aware responses across large projects.

Model flexibility

Cursor allows users to select which AI model to use for each prompt. It also supports external model integration via custom API keys.

GitHub Copilot allows users to choose from a variety of AI models such as GPT-4, Claude, Gemini, and others when using the immersive Copilot Chat interface at github.com/copilot.

Windsurf also offers a selection of models. Users can manually choose the model for each interaction.

Setup required

Cursor can be downloaded and used immediately without requiring account sign-up. The initial setup is minimal, and users can import their VS Code settings and begin using built-in AI features right away.

Copilot requires users to sign in with a GitHub account and install the appropriate extension for their editor. Some features require a paid subscription before they can be used.

Windsurf requires account registration. Users can either install the extension or download the standalone editor. After login and basic onboarding, full AI features become available.

Custom API keys

Cursor supports adding our own API keys for OpenAI, Anthropic, and others.

GitHub Copilot now allows individual users to bring their own API keys from providers like OpenAI and Anthropic. However, this feature is still in preview and is not currently available to Copilot Business or Enterprise users.

Windsurf supports Bring Your Own Key (BYOK) functionality for select models, allowing users to plug in their own credentials for certain providers.

Collaboration

While Cursor does not yet offer real-time collaboration, it supports version control and is compatible with many VS Code extensions like Live Share. Native live collaboration is under development.

Relies on VS Code Live Share or GitHub features

Not clearly documented

Cost

Cursor offers a free Hobby tier that includes 200 code completions and 50 chat/agent interactions per month. The Pro plan costs $20/month and includes access to more powerful models and higher usage limits. Users who connect their own API keys may incur additional costs from model providers.

Copilot provides a free tier with 2,000 code completions and 50 chat requests per month. The Pro plan costs $10/month for individuals, and Business plans start at $19/user/month.

Windsurf includes a free tier with access to basic completions and a limited number of credits for advanced usage. The Pro plan (~$15/month) offers higher limits and access to premium models. Enterprise plans with additional features are also available.


Cursor is a fully integrated AI code editor that helps us write, understand, and improve code across entire projects. It goes beyond simple code suggestions by offering tools for refactoring, explanation, and automation, all within a context-aware environment. Compared to tools like Copilot or Windsurf, Cursor provides more flexibility in model selection, deeper awareness of our codebase, and greater control over our AI work.

A quick overview of Cursor’s core features

Now that we understand Cursor and why it matters, let’s explore its core features. This section provides a high-level preview of the tools and capabilities we’ll explore in detail later. Each feature will be demonstrated through clear examples and annotated screenshots to help us understand how they fit into real development workflows.

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Core features of Cursor
Core features of Cursor

AI-powered code completion

Cursor offers intelligent, context-aware code suggestions. Unlike traditional editors that provide basic syntax hints, Cursor predicts entire lines or code blocks based on what we’re working on. Writing a function, defining a route, or configuring a file helps us write faster and with fewer mistakes.

Natural language coding

We can describe what we want in plain English, and Cursor turns it into working code. This is especially useful for generating boilerplate, utility functions, or prototyping new components quickly. It’s like having a coding partner who understands our intent and programming style.

Context-aware chat

Cursor includes an integrated chat assistant that understands the files we are working on. We can ask questions about the current code, troubleshoot issues, or request help with a specific task. Because it operates within the context of our project, its responses are more relevant and accurate than a generic chatbot.

Code explanation and inline help

The Cursor helps us understand unfamiliar or complex code. We can highlight any portion of code and ask for an explanation in simple language. This is particularly helpful when reviewing someone else’s code or returning to a project after a long break.

Debugging and refactoring suggestions

Cursor goes beyond writing code. It actively helps us improve what we’ve already written. It can point out logic issues, recommend cleaner patterns, and suggest ways to simplify or refactor our code. These suggestions help keep our codebase readable and maintainable over time.

Automating tasks with the Cursor agent

The Cursor agent allows us to automate common tasks like generating tests, adding type hints, or creating new file structures. Instead of performing these steps manually, we can ask the agent to handle them. This reduces repetitive work and helps us stay focused on problem-solving.

These features work together to create a smarter development environment. As we move through the course, we’ll closely examine each one.

Who is using Cursor?

Cursor is being adopted by engineering teams at leading technology companies, including OpenAI, Stripe, Spotify, Shopify, Instacart, and Ramp. These organizations use Cursor to speed development, reduce manual effort, and improve project code quality.

For example, Cursor grew from 150 to over 500 active users at Rippling within a few weeks. Their CTO shared that Cursor plays a central role in their day-to-day development workflow and has been especially helpful during large-scale code migrations.

Cursor’s growing adoption reflects how AI-assisted development is becoming a practical part of modern software engineering. It supports individual developers and teams by making common tasks like debugging, refactoring, and documentation faster and more manageable.

What’s next?

We’ve now seen what Cursor is and how it stands apart from traditional editors. Instead of being just a place to write code, Cursor actively supports us throughout the development process. It suggests completions, explains logic, fixes issues, and automates repetitive tasks.

In the next lesson, we’ll set up Cursor and examine the editor more thoroughly. We’ll walk through the interface, learn how to navigate around a project, and get comfortable with the layout before we begin using its AI features.

Note: Cursor has built-in access to powerful AI models like GPT-4, GPT-4o, and Claude Sonnet. We can use its AI features immediately without setting up our API keys. The free plan gives us plenty of AI help for everyday coding tasks like writing, editing, and debugging. Some advanced features might run a little slower during busy times. We can upgrade to a paid plan if we need faster results or want to use AI more often. Cursor also gives us the option to connect our own AI accounts. For example, if we already have access to OpenAI or Anthropic or are running a custom model ourselves, we can link it to Cursor. This makes it easy to choose the best setup for our needs.