AGENTS.md has emerged as the de facto open standard for guiding AI coding assistants, now adopted by over 20,000 repositories and formalized in August 2025 through collaboration between OpenAI, Google, Cursor, Factory, and Sourcegraph. This file acts as a "README for machines"—providing structured, technical context that helps AI assistants write better code from the start. For Python + AWS + Terraform projects, a well-crafted AGENTS.md dramatically reduces friction, ensuring generated code follows your conventions, uses the right tools, and adheres to security requirements.
AGENTS.md is a dedicated Markdown file that complements, not replaces, README.md. While README targets human developers with project overviews and quick-start guides, AGENTS.md contains detailed technical instructions specifically for AI coding agents. Think of it as onboarding documentation for an AI team member: ex