What is Claude Code?

AI tools are increasingly common in software development, but many of them stop short of truly integrating into a developer’s workflow. They suggest snippets, explain concepts, and answer questions, but they still leave most of the heavy lifting to you.

Claude Code is different.

Claude Code is a terminal-based AI assistant designed to work directly in your local filesystem. Instead of acting like a chat assistant in a browser, it operates where developers already spend their time: the command line. It focuses on planning, writing, reviewing, and modifying real code instead of generic conversation.

Here’s what makes Claude Code unique, the value it provides to developers, and how to install it yourself.

What is Claude Code?

Claude Code is a terminal-based interface that gives Claude AI models the ability to interact directly with your local development environment.

That shift—from copying responses in-browser to directly applying those responses in a terminal—unlocks a very different kind of workflow. Where many AI coding tools live outside your project, Claude Code lives inside it.

When you run Claude Code from a directory, it treats that directory as its working context. From there, it can:

• Read existing files

• Create new files and folders

• Modify code in place

• Understand project structure

• Keep changes organized across multiple files

This removes a lot of friction. You’re no longer copying code between tools or manually translating suggestions into real changes. 

Is Claude Code an agentic AI tool?

Yes, one of Claude Code’s defining features is its support for agentic work. Instead of requiring you to spell out every step, Claude Code only requires you to describe a goal. From there, it determines the steps needed to achieve that goal, from planning to reading files, writing code, and making updates along the way.

This means:

• Fewer prompts for multi-step tasks

• Less context switching

• Faster progress on complex changes

A note on responsibility and review here: While Claude Code can take on multi-step tasks autonomously, it’s best used to support developers—not replace sound engineering judgment. Treat its output the same way you would a teammate’s pull request: review changes carefully, validate assumptions, run tests, and ensure the code aligns with your standards. Using Claude Code effectively means pairing its speed and automation with human oversight, especially when it comes to correctness, security, and maintainability.

How to install Claude Code

You can install Claude Code in several different ways, depending on your operating system and preferences. Anthropic’s documentation covers installation options for Windows, macOS, and Linux.

One common approach on macOS uses curl, a command-line tool that’s preinstalled on most systems, to download and run an installation script.

After running that provided install command, you’ll also might be instructed to run an export PATH statement so your system can locate the Claude executable. Once that’s done, Claude Code is installed.

To start Claude Code, navigate to the directory you want it to work in and run this simple command:

On your first run, Claude Code will guide you through a short setup process:

• Choosing interface color styles

• Logging into your Claude account for billing and usage tracking

This is the same account you use for the Claude web interface or desktop app—you’re still using the same underlying models.

Once connected, Claude Code confirms that it’s logged in and ready to use.

How to activate Claude Code with an API key instead of a subscription

In addition to subscription plans like Claude Pro, Claude Code can also be used with an API key.

With an API key:

• You pay only for the tokens you consume

• Work won’t be interrupted if you exceed the preset quotas that subscription plans have

This can be useful if you regularly hit plan limits or want more predictable pay-as-you-go usage.

To switch to an API key:

1. In a Claude Code session, run /login again

2. Choose the Anthropic Console account option

3. Complete the steps as directed to log in to the Anthropic console in a browser

Claude Code will generate and manage an API key for you and associate it with your account organization. You can view this key in the web console under Manage API Keys, and you can set monthly spending limits if needed.

Conclusion

Claude Code can be a valuable tool for removing friction from the parts of development that slow developers down. By handling repetitive tasks, organizing changes, and helping reason through complex codebases, Claude Code frees developers to focus on higher-value work: design decisions, architecture, and problem solving. Used thoughtfully, it becomes a force multiplier, an AI partner that amplifies developer expertise rather than substituting for it.

To learn more about using Claude Code as a developer, check out Pluralsight’s Claude Code learning path.