August 14, 2025

What makes an AI tool truly “good”

What makes an AI tool truly “good”

You're debugging a payment system at 3 AM. The error traces through five microservices you didn't write. You paste the stack trace into ChatGPT, and it confidently suggests a fix that breaks three other things.

This isn't bad luck. It's the predictable result of using tools built for demos, not production codebases.

Here's the counterintuitive truth: the AI tools that look most impressive in demos are often the worst for actual development work. The ones that actually make you faster are boring. They do complete jobs instead of flashy tricks.

The Demo Trap

Most AI coding tools are optimized for the wrong thing. They're built to wow you in a 15-minute demo, not to help you ship features faster.

Think about what makes a good demo. You need something that looks magical. The AI sees a few lines of code and instantly writes a perfect function. The audience gasps. The sales guy smiles.

But real development isn't like that. You're rarely writing new functions from scratch. You're mostly reading existing code, understanding how it works, and making small changes without breaking anything.

The demo-optimized AI can't help with this. It doesn't know about your weird authentication middleware or why that database query is written in such a convoluted way. It sees your code as isolated snippets, not as part of a larger system.

This is why experienced developers working with AI actually took 19% longer to close issues in complex repositories. The AI was giving them confident answers about code it didn't understand.

What Actually Matters

Good AI tools do five things that bad ones don't:

They see your whole codebase. Not just the file you're editing, but how it connects to everything else. When you're changing the user authentication, they know about all the places that check user permissions.

They complete workflows. Instead of just writing a function, they write the function, the tests, and open a pull request. You review it once instead of going back and forth fixing little problems.

They keep your code private. No sending your proprietary algorithms to train the next version of GPT. The Stack Overflow survey shows that 46% of developers actively distrust AI-generated code, mostly because of security concerns.

They use the right model for each job. Writing documentation needs a different kind of AI than refactoring legacy code. Good tools route different tasks to different models automatically.

They prove they're worth the money. Teams that actually measure see things like 30% fewer review iterations and measurable lead-time improvements when the AI is working well.

Most tools fail at least three of these. They're built by people who think coding is about writing new code, when it's mostly about understanding existing code.

The Context Problem

Here's something that'll surprise you: the size of an AI's context window matters less than what it does with the context.

Everyone's obsessed with bigger context windows. "This model can read 2 million tokens!" But more context often makes AI worse, not better.

It's like trying to have a conversation with someone while they're reading the encyclopedia. They have access to more information, but they can't focus on what matters.

The best AI coding tools don't just dump your entire codebase into the context window. They understand what's relevant for your specific task. When you're fixing a bug in the payment processor, they show the AI the payment code, the related tests, and recent changes to that area. They don't include your entire frontend framework.

This is why tools that can handle massive codebases (≥400k files) often work better than ones with bigger context windows. They're not trying to read everything at once. They're finding the right things to read.

The Workflow Test

Want to know if an AI tool is actually useful? Don't ask for a demo. Ask them to do this:

Give them a real bug from your backlog. Something that touches multiple files and needs tests. See if they can go from "here's the issue" to "here's a pull request that fixes it."

Most tools will fail this test. They'll write part of the fix, then ask you to write the tests. Or they'll fix the immediate problem but miss the edge cases. Or they'll write beautiful code that doesn't actually compile in your environment.

The tools that pass this test are worth considering. The ones that fail aren't ready for production use, no matter how impressive their marketing is.

Security Theater vs Real Security

The AI tool market is full of security theater. Vendors throw around certifications and promise that your code is safe, but then their demo shows them pasting proprietary code into a web interface.

Real security means your code never leaves your environment. It means the vendor can't train on your data even if they wanted to. It means you can audit exactly what data goes where.

Look for SOC 2 certification, but also ask harder questions. Where does the code go when you paste it in? How do you know they're not training on it? Can you run the AI on your own infrastructure?

The vendors who get defensive about these questions are telling you something important about their priorities.

Why Teams Fail at AI Adoption

Most teams approach AI tools like they approach other software. They evaluate features, negotiate price, roll it out to everyone, and hope for the best.

This doesn't work with AI because AI is weird. It's not deterministic like normal software. It can work perfectly on one type of code and completely fail on another. It can seem helpful for weeks and then start generating garbage.

Smart teams treat AI adoption like a science experiment. They start small, measure everything, and only expand when they can prove the tool is actually helping.

Here's what that looks like:

Pick one small project. Not your core product, but something that matters. Give a few developers access to the AI tool and track what happens. How long do reviews take? How many bugs make it to production? How frustrated are the developers?

Don't trust anecdotes. Developers will say they love a tool that's actually making them slower because it feels helpful in the moment. Track the numbers.

Only after you can prove the tool is working should you expand to more teams or more critical code.

The Measurement Problem

Here's the thing about measuring AI impact: most teams measure the wrong things.

They count lines of code generated or time saved on individual tasks. But what matters is end-to-end impact. Are you shipping features faster? Are you finding bugs earlier? Are your developers happier?

Use simple metrics that connect to business outcomes:

How long from opening a PR to merging it? Good AI should make this faster by generating better initial code and fewer review cycles.

How many bugs make it to production? AI that understands your codebase should catch more problems before they ship.

How long does it take new developers to make their first meaningful contribution? AI-generated documentation and code explanations should speed this up.

These metrics are harder to game than "lines of code generated" and they actually tell you if the AI is helping your business.

What This Means for the Future

The current AI coding tool market is going through the same evolution every new technology does. First, everyone builds tools that show off the technology. Then, slowly, people start building tools that actually solve problems.

We're in the transition between those phases right now. The demo-ware is still getting most of the attention, but the useful tools are starting to emerge.

The vendors who understand this will win. The ones who keep optimizing for demos will become footnotes.

This pattern repeats in every technology cycle. The first websites were designed to show off what HTML could do. The first mobile apps were designed to show off touchscreens. The useful versions came later, after people figured out what the technology was actually good for.

With AI coding tools, we're starting to learn what they're actually good for. Not replacing programmers, not writing perfect code from scratch, but understanding large codebases and completing tedious workflows.

The tools that focus on these boring, practical problems will be the ones that matter in five years.

How to Spot the Real Ones

Good AI coding tools don't lead with the size of their models or how much code they can generate. They lead with specific problems they solve.

"We help teams understand legacy codebases" is a real problem. "We use the latest GPT-5 model" is a feature in search of a problem.

"We reduce code review cycles from 3 days to 1 day" is measurable value. "We can generate entire applications" is a demo trick.

The best tools also don't try to do everything. They pick a few problems and solve them well. The worst tools promise to revolutionize your entire development process.

When evaluating tools, ignore the marketing and focus on specifics. What exact workflow does this tool improve? How will you know if it's working? What happens when it fails?

The vendors who can answer these questions clearly probably have a real product. The ones who pivot to talking about AI advancement or market trends probably don't.

The Real Revolution

The real revolution in AI coding tools won't be about replacing developers. It'll be about letting developers focus on the parts of their job that actually matter.

Right now, developers spend huge amounts of time on busywork. Reading through legacy code to understand what it does. Writing boilerplate tests. Fixing style violations. Updating documentation that got out of sync.

AI is already pretty good at this stuff. Not perfect, but good enough to be useful. And it's getting better fast.

The interesting question isn't whether AI will replace programmers. It's whether programmers who use AI well will replace programmers who don't.

Early signs suggest yes. Teams that adopt AI tools thoughtfully are shipping faster and with fewer bugs. Teams that ignore AI tools or adopt them badly are falling behind.

This creates a weird dynamic. The technology that's supposed to make programming easier might actually make the skill gap between good and bad programmers wider.

What This All Means

The AI coding tool market is still figuring itself out. Most tools are optimized for the wrong things, built by people who don't understand how development actually works.

But the good ones are starting to emerge. They're not the flashiest or the most heavily marketed. They're the ones that solve real problems and prove their value through better outcomes.

If you're evaluating AI tools, ignore the hype and focus on fundamentals. Can it see your whole codebase? Does it complete workflows? Can you trust it with your code? Does it make you measurably faster?

Most tools will fail these tests. The few that pass are worth your attention.

Ready to work with AI that actually makes you faster? Augment Code built their tools around complete workflows, not flashy demos. They understand entire codebases, generate working pull requests, and prove their value through measurable improvements in development speed.

Molisha Shah

GTM and Customer Champion