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AGENTS.md Best Practices for AI Coding Assistants: Comprehensive Guide
AGENTS.md has emerged as the de facto open standard for guiding AI coding assistants, now adopted by over 20,000 repositories and formalized in August 2025 through collaboration between OpenAI, Google, Cursor, Factory, and Sourcegraph. This file acts as a "README for machines"—providing structured, technical context that helps AI assistants write better code from the start. For Python + AWS + Terraform projects, a well-crafted AGENTS.md dramatically reduces friction, ensuring generated code follows your conventions, uses the right tools, and adheres to security requirements.
What is AGENTS.md and why it matters
AGENTS.md is a dedicated Markdown file that complements, not replaces, README.md. While README targets human developers with project overviews and quick-start guides, AGENTS.md contains detailed technical instructions specifically for AI coding agents. Think of it as onboarding documentation for an AI team member: ex
In a Unix/Linux operating systems, chmod is the command, which may change the access permissions to files and directories.
It works if the user has the right to change the file or directory permission.
When you use ll or ls -l for files, or ls -ld for directories, you will see access permissions as 10 characters before the name of the file or directory. The first character to the left is d for directories, and - for files.
To understand the file permission, consider the following table.
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A pattern for building personal knowledge bases using LLMs.
This is an idea file, it is designed to be copy pasted to your own LLM Agent (e.g. OpenAI Codex, Claude Code, OpenCode / Pi, or etc.). Its goal is to communicate the high level idea, but your agent will build out the specifics in collaboration with you.
The core idea
Most people's experience with LLMs and documents looks like RAG: you upload a collection of files, the LLM retrieves relevant chunks at query time, and generates an answer. This works, but the LLM is rediscovering knowledge from scratch on every question. There's no accumulation. Ask a subtle question that requires synthesizing five documents, and the LLM has to find and piece together the relevant fragments every time. Nothing is built up. NotebookLM, ChatGPT file uploads, and most RAG systems work this way.