GitHub Copilot VSCode 1.98: Raising the Bar in the AI Coding Assistant Race
The AI coding assistant landscape is heating up, and GitHub Copilot’s latest update for Visual Studio Code is a clear response to the growing competition from tools like Cursor AI. With the release of version 1.98, Copilot isn’t just keeping pace - it’s pushing the boundaries of what AI-assisted development can achieve.
This update comes at a pivotal moment in the AI coding assistant space. As highlighted in recent comparisons between GitHub Copilot and Cursor AI, the competition is driving rapid innovation. While Cursor AI has gained attention for its seamless IDE integration and context-aware suggestions, Copilot is countering with a suite of powerful new features that redefine developer productivity.
The AI Assistant Arms Race: Copilot’s Response
The battle between AI coding assistants has been a boon for developers everywhere. Cursor AI’s emergence as a strong competitor has clearly pushed GitHub Copilot to innovate faster. Version 1.98 introduces several features that directly address areas where Cursor AI has been making waves:
1. Agent Mode: The Autonomous Coding Assistant (Preview)
Taking a page from Cursor AI’s playbook, Copilot now offers enhanced autonomous capabilities. Agent Mode represents a significant leap forward, allowing Copilot to:
- Search your workspace for relevant context
- Edit files with precision
- Run terminal commands (with explicit permission)
- Complete tasks end-to-end
The improvements in Agent Mode UX are particularly noteworthy:
- Inline terminal command display for better transparency
- Editable terminal commands before execution
- ⌘Enter shortcut for quick command confirmation
2. Next Edit Suggestions: Smarter Code Refactoring (Preview)
The new collapsed mode for Next Edit Suggestions (NES) offers a more streamlined experience:
- Suggestions appear only in the left editor margin
- Code suggestions reveal upon navigation
- Consecutive suggestions show immediately after acceptance
3. Notebook Support: Data Science Meets AI (Preview)
Copilot’s new notebook support brings AI assistance to data science workflows:
- Create and modify notebooks from scratch
- Edit content across multiple cells
- Insert, delete, and change cell types seamlessly
Custom Instructions: Tailoring Copilot to Your Workflow (GA)
The general availability of custom instructions marks a significant milestone:
- Use .github/copilot-instructions.md for team-specific guidance
- Enable via github.copilot.chat.codeGeneration.useInstructionFiles setting
- Maintain consistent coding standards across projects
Model Selection: Powering Up with GPT 4.5 and Claude 3.7 Sonnet
Copilot’s expanded model selection offers unprecedented flexibility:
- GPT 4.5 (Preview): OpenAI’s latest powerhouse
- Claude 3.7 Sonnet (Preview): Enhanced agentic capabilities
- Model-specific features for specialized tasks
Vision Support: Seeing is Coding (Preview)
The new vision capabilities open up exciting possibilities:
- Attach images for debugging assistance
- Implement UI mockups with AI-generated code
- Multiple attachment methods (drag & drop, clipboard, screenshot)
Image attachments in chat
Copilot Status Overview: At-a-Glance Insights (Experimental)
The new status overview provides:
- Quota information for free users
- Key editor settings visibility
- Quick access to Copilot features
Copilot status indicator in the status bar
The Future of AI-Assisted Development
This update demonstrates GitHub Copilot’s commitment to staying at the forefront of AI-assisted development. While the competition with Cursor AI continues to drive innovation, Copilot’s latest features show that it’s not just keeping up - it’s setting new standards for what developers can expect from their AI coding assistants.
As the AI coding assistant landscape evolves, one thing is clear: developers are the ultimate winners in this race. Whether you’re team Copilot, team Cursor, or using both, these tools are transforming how we write code, solve problems, and think about software development.