The concept of "Skills" was born when the team found that telling Claude *how* to query a data source and follow design guidelines produced better, more flexible dashboards than building rigid, parameterized tools. This discovery highlighted the power of instruction over hard-coding.

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Instead of complex SDKs or custom code, users can extend tools like Cowork by writing simple Markdown files called "Skills." These files guide the AI's behavior, making customization accessible to a broader audience and proving highly effective with powerful models.

The paradigm is shifting from using AI as a general chatbot to building a team of 'digital employees.' Claude Skills allow users to encapsulate a specific, repeatable workflow—like drafting a newsletter from tweets—into a tool that can be executed on demand, creating a specialized agent for that job.

Users can now upload instructional files to teach Claude AI specific abilities. This allows the AI to perform complex, branded tasks like creating presentations or designing posters according to a company's unique style guide, effectively turning it into a personalized expert assistant.

Coding agents are becoming powerful tools for general knowledge work. A non-technical user was able to point Claude Code at a data file and have it autonomously produce five complete, well-designed HTML dashboards and analysis reports.

Beyond using pre-made skills, users can simply prompt Claude to create a new skill for itself. The AI understands the required format and can generate the instructional text for a new capability, such as crafting marketing hooks that create FOMO. This democratizes the process of AI customization.

The process of building AI tools is becoming automated. Claude features a 'Skill Creator,' a skill that builds other skills from natural language prompts. This meta-capability allows users to generate custom AI workflows without writing code, essentially asking the AI to build the exact tool they need for a task.

Unlike Claude Projects where the LLM decides how to use tools, Skills execute predefined scripts. This gives users precise control over data analysis and repeatable tasks, ensuring consistent, accurate results and overcoming the common issue of non-deterministic AI outputs.

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."

Overloading LLMs with excessive context degrades performance, a phenomenon known as 'context rot'. Claude Skills address this by loading context only when relevant to a specific task. This laser-focused approach improves accuracy and avoids the performance degradation seen in broader project-level contexts.

Unlike Claude Projects or OpenAI's Custom GPTs which apply a general context to all chats, Claude Skills are task-specific instruction sets that can be dynamically called upon within any conversation. This allows for reusable, on-demand workflows without being locked into a specific project's context.

Anthropic's "Skills" Feature Grew from an Internal Need to Generate Better Dashboards | RiffOn