AI Agents - Setup & Configuration

Overview

Estimated time: 25–35 minutes

This guide covers common setup patterns, authentication methods, and configuration best practices for AI coding assistants and agents.

Learning Objectives

• Configure authentication for major AI coding tools
• Set up development environments for optimal AI assistance
• Understand security and privacy considerations
• Apply consistent configuration patterns across tools

Prerequisites

• AI Agents - Introduction
• Basic command line familiarity
• Development environment (VS Code, terminal, etc.)

Authentication Patterns

API Key Based Authentication

Most AI coding tools require API keys for authentication:

# Set environment variable
export OPENAI_API_KEY="sk-..."

# Or in .env file
OPENAI_API_KEY=sk-...

# Set environment variable
export ANTHROPIC_API_KEY="sk-ant-..."

# Configuration
ANTHROPIC_API_KEY=sk-ant-...

OAuth & Account Integration

# GitHub authentication for Copilot
gh auth login

# Verify authentication
gh auth status

# Replit account integration
replit auth login

Development Environment Setup

VS Code Configuration

Essential settings for AI-enhanced development:

{
  "editor.inlineSuggest.enabled": true,
  "editor.suggest.preview": true,
  "github.copilot.enable": {
    "*": true,
    "yaml": true,
    "plaintext": false,
    "markdown": true
  },
  "editor.quickSuggestions": {
    "comments": true,
    "strings": true,
    "other": true
  }
}

Terminal and Shell Setup

# Install helpful CLI tools
npm install -g @githubnext/github-copilot-cli

# Shell integration (add to .bashrc/.zshrc)
eval "$(github-copilot-cli alias -- "$0")"

# Warp terminal setup
curl -fsSL https://app.warp.dev/download | sh

Security Configuration

Environment Variable Management

# Create .env file (add to .gitignore)
touch .env
echo ".env" >> .gitignore

# Use direnv for per-project environments
echo "export OPENAI_API_KEY=..." > .envrc
direnv allow

# Or use a credential manager
gh auth login --with-token < token.txt

Privacy-First Configuration

{
  "cursor.privacy.enableTelemetry": false,
  "cursor.ai.useLocalModels": true,
  "github.copilot.advanced": {
    "length": 500,
    "temperature": 0.1,
    "top_p": 1,
    "inlineSuggestCount": 3
  }
}

Tool-Specific Setup Guides

GitHub Copilot

# Install VS Code extension
code --install-extension GitHub.copilot

# CLI setup
npm install -g @githubnext/github-copilot-cli
echo 'eval "$(github-copilot-cli alias -- "$0")"' >> ~/.bashrc

Cursor Editor

# Download and install Cursor
curl -L https://cursor.sh/download -o cursor-installer

# Import VS Code settings
# File > Preferences > Import from VS Code

Replit Setup

# Install Replit CLI
npm install -g replit-cli

# Login and configure
replit auth login
replit whoami

Configuration Files

Project-Level Configuration

Create standardized configuration files for consistent AI assistance:

# .ai-config.yml
tools:
  github-copilot:
    enabled: true
    suggestions: inline
  cursor:
    composer: true
    chat: true
  
privacy:
  data_sharing: false
  local_models: preferred
  
preferences:
  code_style: consistent
  documentation: auto-generate

Workspace Settings

{
  "ai.enabled": true,
  "ai.suggestions.enabled": true,
  "ai.chat.enabled": true,
  "editor.formatOnSave": true,
  "editor.codeActionsOnSave": {
    "source.organizeImports": true,
    "source.fixAll": true
  }
}

Troubleshooting Common Issues

# Check authentication
gh auth status

# Re-authenticate
gh auth login --web

# Check Copilot status
gh copilot status

{
  "ai.maxTokens": 1000,
  "ai.requestTimeout": 5000,
  "ai.cacheDuration": 300
}

Best Practices

Next Steps

With your development environment configured, you're ready to explore specific AI tools:

• GitHub Copilot - Basics — Industry-standard AI pair programming
• Cursor - Introduction — AI-first code editor
• AI Agents - Security & Privacy — Advanced security considerations