Cursor AI: How the Smart AI Code Editor Works and Why It's a Game Changer

30.06.2025

11.07.2025

📌 Table of Contents
• Introduction: What is Cursor AI
• Key Features of Cursor AI
• Comparing Cursor AI with Other AI Editors
• Getting Started: Installation and Launch
• How to Write Code Effectively with Cursor
• Unique Features and Highlights
• Pricing and Plans
• Conclusion: Is Cursor AI Worth Using?

🧠 Introduction: What is Cursor AI
Cursor AI is an AI assistant for programmers, integrated into a modified version of Visual Studio Code. It helps you write, edit, and refactor code using models from OpenAI (GPT-4-turbo and GPT-4o). Unlike standard solutions, Cursor AI actively interacts with your project context, can "understand" architecture, and even manage files.
Launched in 2023, by 2025 it is already used by startups, teams, and freelancers worldwide.

🚀 Key Features of Cursor AI

💬 1. Chat inside IDE (⌘K / Ctrl+K)
What it is:
Chat with AI inside the editor. You can ask questions about code, give commands to change or create functions, refactor, or get explanations.
How it works:
Triggered by hotkey or click. The context is the entire project (not just the open file). AI knows your location, dependencies, and what each function does.
Example commands:
• "Convert this component to a React hook"
• "Optimize this algorithm for big data"
• "Explain why this fetch error occurs"
Benefit:
Speeds up development, reduces Stack Overflow switching. Especially useful on unfamiliar projects.

✨ 2. Inline Suggestions While Coding
What it is:
Real-time autocomplete like Copilot, but more contextual and "aware." Not just phrase completion, but logical function completion.
How it works:
You start typing function validateEmail(, and AI suggests an implementation with RegExp, validation, errors, and comments.
Difference from Copilot:
Cursor considers not only the current file but also other project modules. It can "pull in" the right dependencies.
Benefit:
Saves time, reduces bugs, helps juniors code like middles.

🔧 3. Command-based Refactoring
What it is:
Allows you to change structure, style, or approach by command in chat or right-clicking code.
Commands:
• "Make this class a functional component"
• "Extract repeated code into a separate function"
• "Remove code duplication"
Specialty:
AI determines which parts to change. Can suggest better folder structure, move logic to hooks, create configs.
Benefit:
Improves readability, reduces technical debt. Especially important for teamwork.

🔍 4. Natural Language Code Search
What it is:
Ask questions like "Where is the JWT token generated in the project?" and get a list of files and code fragments with highlights.
How it works:
Cursor indexes the whole project and uses a GPT model to interpret your words.
Examples:
• "Where is axios used?"
• "Which functions work with localStorage?"
• "Where is the payment logic defined?"
Benefit:
Invaluable when joining a new project. Lets you quickly find what you need without knowing the structure.

🧪 5. Test Generation
What it is:
AI automatically creates unit tests for existing functions (e.g., using Jest or Vitest).
How it works:
Select a function, click "Generate test"—get a test file including edge cases.
Advantages:
• Tests are written in the correct style
• Supports mock objects and async logic
• You can request: "add a test for invalid input"
Benefit:
Speeds up test coverage. Especially helps teams where not everyone is confident with unit tests.

🕰 6. AI-powered Git History and Explain Diff
What it is:
AI analyzes git commits and explains what was done: "Added email validation and refactored login.js."
How it works:
Open git diff, click "Explain with AI"—get a human-readable description of changes.
Additionally:
• Ask "why is this change important"
• Or "are there potential bugs in this diff"
Benefit:
Speeds up reviews, helps new team members understand code history, simplifies changelog writing.

📎 7. Snippets and Explanations
What it is:
AI explains what code does, highlights potential issues, suggests improvements.
How to use:
Right-click → "Explain with AI" or chat command.
Examples:
• "What does this recursive function do?"
• "Why might there be a memory leak here?"
• "How to improve this loop's performance?"
Benefit:
Educational effect. Helps juniors and middles understand architecture, seniors spot bottlenecks.

⚖️ Comparing Cursor AI with GitHub Copilot and Others

Bottom line: Cursor AI is closer to a full-fledged AI assistant, not just a code generator.

🛠 Getting Started: Installation and Launch

1. Go to https://www.cursor.sh
2. Click Download for Mac/Windows/Linux—download the IDE.
3. Install as a regular app (VSCode fork).
4. Log in via GitHub or email.
5. Connect your OpenAI API key (if you don’t want to use built-in limits).
6. Start working: open a repo and press ⌘K to call the AI.

✍️ How to Write Code with Cursor AI
Main approaches:
• Chat assistant (⌘K or Ctrl+K): state your task like "add email validation," and AI integrates the solution.
• Click code → Ask AI: explanation, correction, or improvement of a specific section.
• Search and replace via language: "Replace all axios with fetch, keeping logic."
Tips:
• AI can’t "guess." Instead of "buttons don’t work," write:
"When I click the button, the value doesn’t appear on the screen."
The more precise the request, the faster and better the answer. Specify context: where the problem occurred, what you expected, what you got.
• Before giving Cursor a change task—copy the original code. Sometimes the neural net may "improve" but break functionality. Backup takes seconds, recovery—hours.
• Cursor and GPT-5 don’t judge. Feel free to ask:
"How does this code work?"
"What does this terminal error mean?"
"How to save a file in Python?"
AI will give step-by-step explanations—especially valuable for beginners.
• Use [// @cursor ignore] for sections you don’t want analyzed.
• Don’t be afraid to edit the AI’s answer—it "learns" from feedback.
• Cursor can integrate with GitHub—for autosaves, versioning, and teamwork. Useful not only for development but also as a professional portfolio. Show clients how you code—straight from the repo.

🧩 Unique Features of Cursor AI
🧠 Cursor Memory
Cursor "remembers" code changes between sessions and considers the whole project.
🔍 AI-powered file search
Search not by name, but by meaning: "where is the auth logic?"
📄 AI git diff
AI explains git commit changes as text—convenient for reviews.
🌐 Workspaces + Sharing
Share the entire workspace with AI comments for colleagues.
⚡️ Cursor Actions
One-click hot actions: "Optimize," "Explain," "Add test"—like buttons inside the IDE.

💵 How much does Cursor AI cost?

💡 GPT 5, Claude, and Gemini models are available via your own API key starting from Ultra and above.

✅ Conclusion: Is Cursor AI Worth Using?
Cursor AI is a step forward from just smart autocompletion to a true AI companion in programming. It understands project structure, gives useful tips, helps with architecture and tests. Especially valuable for:
• Full-stack developers
• Startups with small teams
• Freelancers needing fast refactoring
• Team leads who want to see "smart" diffs and history
If you’re used to GitHub Copilot—try Cursor for at least a week. It can replace not only Copilot but also half your Google searches during development.

👉 Try AI tools at AIMarketWave.com—only proven ones, with examples and guides!

Read on TelegramWatch on YouTube