Terminal-based AI coding tools gain momentum, sparking shift in software development

AI coding tools are shifting from code-editing to terminal-based interfaces, with major labs releasing command-line tools like Claude Code, Gemini CLI, and CLI Codex. Terminal-based tools are gaining popularity as prominent code-based tools face uncertainty, and research suggests that developers may be overestimating productivity gains from conventional tools. This shift could have significant implications for the future of AI-powered software development.

AI coding tools have traditionally been centered around code editors, but a significant shift is underway. Major labs, including Anthropic, DeepMind, and OpenAI, have released command-line tools such as Claude Code, Gemini CLI, and CLI Codex. This trend is gaining traction as prominent code-based tools face uncertainty and developers may be overestimating the productivity gains from conventional tools.

The terminal, once a staple of 90s hacker culture, is reemerging as a powerful interface for AI-powered software development. Tools like Warp, which bills itself as an "agentic development environment," are bridging the gap between traditional IDEs and command-line tools. Warp's focus on the terminal allows it to tackle problems that would be out of scope for a code editor like Cursor.

The shift to terminal-based tools is evident in the release of new command-line coding tools by major labs. These tools are designed to interact directly with the shell of the system they are installed in, rather than just writing and debugging code. This approach allows for a wider range of tasks, including configuring servers and troubleshooting scripts, which are not typically handled by code editors.

Research suggests that developers may be overestimating the productivity gains from conventional tools. A study testing Cursor Pro found that while developers estimated a 20-30 percent productivity gain, the observed process was nearly 20 percent slower. This highlights the potential for terminal-based tools to offer more efficient solutions for certain tasks.

Warp, which currently holds the top spot on TerminalBench, is a notable example of this shift. Warp is designed to handle much of a developer's non-coding work autonomously, including setting up new projects and troubleshooting dependencies. This capability is a significant value proposition that is difficult to ignore.

The implications of this shift are profound. Terminal-based tools offer a more versatile and powerful interface for AI-powered software development. They allow developers to tackle a wider range of tasks and can potentially offer more efficient solutions for certain problems. As these tools continue to evolve, they have the potential to significantly impact the future of AI-powered software development.

References:
[1] https://techcrunch.com/2025/07/15/ai-coding-tools-are-shifting-to-a-surprising-place-the-terminal/
[2] https://www.reddit.com/r/ClaudeAI/comments/1lwq713/claude_code_and_gemini_cli_make_them_work/
[3] https://medium.com/design-bootcamp/warp-vs-gemini-vs-claude-ai-terminal-vs-code-showdown-361239cede9f