Kieran Klaassen's "Compound Engineering" philosophy involves planning, working, assessing, and then codifying learnings. This feedback loop teaches the AI what it did wrong, ensuring it won't repeat the same mistakes and making it progressively better with each use.
Unlike traditional software where problems are solved by debugging code, improving AI systems is an organic process. Getting from an 80% effective prototype to a 99% production-ready system requires a new development loop focused on collecting user feedback and signals to retrain the model.
Instead of codebases becoming harder to manage over time, use an AI agent to create a "compounding engineering" system. Codify learnings from each feature build—successful plans, bug fixes, tests—back into the agent's prompts and tools, making future development faster and easier.
The easiest way to teach Claude Code is to instruct it: "Don't make this mistake again; add this to `claude.md`." Since this file is always included in the prompt context, it acts as a permanent, evolving set of instructions and guardrails for the AI.
The critical challenge in AI development isn't just improving a model's raw accuracy but building a system that reliably learns from its mistakes. The gap between an 85% accurate prototype and a 99% production-ready system is bridged by an infrastructure that systematically captures and recycles errors into high-quality training data.
When an AI tool makes a mistake, treat it as a learning opportunity for the system. Ask the AI to reflect on why it failed, such as a flaw in its system prompt or tooling. Then, update the underlying documentation and prompts to prevent that specific class of error from happening again in the future.
Rather than achieving general intelligence through abstract reasoning, AI models improve by repeatedly identifying specific failures (like trick questions) and adding those scenarios into new training rounds. This "patching" approach, though seemingly inefficient, proved successful for self-driving cars and may be a viable path for language models.
A truly effective skill isn't created in one shot. The best practice is to treat the first version as a draft, then iteratively refine it through research, self-critique, and testing to make the AI "think like an expert, not just follow steps."
Teams maintain a shared `Claude.md` text file in their Git repo. Anytime the AI errs, they add corrections or context to this file. This acts as a constantly improving, team-wide knowledge base that teaches the AI how to work correctly within their specific project, creating a compounding effect.
To get the best results from an AI agent, provide it with a mechanism to verify its own output. For coding, this means letting it run tests or see a rendered webpage. This feedback loop is crucial, like allowing a painter to see their canvas instead of working blindfolded.
The recent leap in AI coding isn't solely from a more powerful base model. The true innovation is a product layer that enables agent-like behavior: the system constantly evaluates and refines its own output, leading to far more complex and complete results than the LLM could achieve alone.