I tried Microsoft’s new AI-powered Terminal, and it is a surprisingly different experience
Microsoft introduced the Intelligent Terminal at Build 2026, a new command-line tool that integrates AI agents to enhance developer productivity. Rather than modifying the existing Windows Terminal, Microsoft forked the open-source project to create a specialized tool that maintains the familiar Windows Terminal experience while adding intelligent assistance capabilities.
The Intelligent Terminal features a side panel that allows developers to interact directly with GitHub Copilot, bringing AI-powered assistance to the command line. By preserving the core Windows Terminal interface, Microsoft ensures developers won’t face a steep learning curve when adopting the new features.
This approach demonstrates Microsoft’s strategy of enhancing developer tools with AI capabilities without disrupting established workflows. The integration of GitHub Copilot into the terminal environment enables developers to receive intelligent suggestions and assistance directly within their command-line interface, potentially streamlining debugging, code execution, and command composition tasks.
The new tool is positioned as a companion to the traditional Windows Terminal rather than a replacement, giving developers the choice between the familiar interface they know and the enhanced AI-assisted version. This dual approach allows teams and individuals to adopt the new technology at their own pace while maintaining compatibility with existing development practices and tooling.