We pulled dozens of AGENTS.md files from across our monorepo and measured their effect on code generation. The best ones gave our coding agent a quality jump equivalent to upgrading from Haiku to Opus. The worst ones made the output worse than having no AGENTS.md at all.

That gap was surprising enough that we built a systematic study around it.

What we found: most of what people put in AGENTS.md either doesn't help or actively hurts, and the patterns that work are specific and learnable.

A single AGENTS.md isn't uniformly good or bad. The same file boosted best_practices by 25% on a routine bug fix and dropped completeness by 30% on a complex feature task in the same module.

On the bug fix, a decision table for choosing between two similar data-fetching approaches helped the agent pick the right pattern immediately and stay within codebase standards. On the feature task, the agent read that same file, got pulled into the reference section, opened dozens of other markdown files trying to verify its approach against every guideline, created unnecessary abstractions, and shipped an incomplete solution.

Different blocks of the document had opposite effects on different tasks.

What follows is which patterns work, which fail, and how to tell which is which for your codebase.

We used AuggieBench, one of our internal eval suites, to evaluate how well agents do our internal dev work. We start with high-quality PRs from a large repo that reflect typical day-to-day agent tasks, set up the environment and prompt, and ask the agent to do the same task. Then we compare its output against the golden PR, the version that actually landed after review by multiple senior engineers. We filtered out PRs with scope creep or known bugs.

For this study, we added two more filters: PRs had to be contained within a single module or app, and the scope had to be one where information in an AGENTS.md might plausibly help. We then ran each task twice, with and without the file, and compared scores.

1. Progressive disclosure beats comprehensive coverage

Treat your AGENTS.md like a skill. Cover the common cases and workflows at a high level, then push details into reference files the agent can load on demand. Keep each reference's scope clear so the agent knows when to pull it in.

The 100–150 line AGENTS.md files with a handful of focused reference documents were the top performers in our study, delivering 10–15% improvements across all metrics in mid-size modules of around 100 core files. Once the main file got longer than that, the gains started reversing.

2. Procedural workflows take agents from failing to finishing

Describing a task as a numbered, multi-step workflow was one of the strongest patterns we measured. A well-written workflow can move the agent from unable to complete a task to producing a correct solution on the first try.

One example from our codebase: a six-step workflow for deploying a new integration. The agent followed it step by step. The share of PRs with missing wiring files dropped from 40% to 10%, and the agent finished faster on average. Correctness went up 25%. Completeness went up 20%.

For complex workflows, keep the main file concise and use reference files for branching cases.

3. Decision tables resolve ambiguity before the agent writes code

When your codebase has two or three reasonable ways to do something, decision tables force the choice up front. This is the pattern that most directly improved adherence to codebase conventions.

Example: resolving React Query vs Zustand for state management.

PRs in this area scored 25% higher on best_practices. The table resolved the ambiguity before the agent wrote a single line of code.

4. Examples from the real codebase improve code reuse

Short snippets of 3–10 lines from actual production code improved reuse and pattern adherence. Keep it to a few examples that are most relevant and not duplicative. More than that and the agent starts pattern-matching on the wrong thing.

5. Domain-specific rules still matter

This is the pattern most people already associate with AGENTS.md: language- or org-specific gotchas.

This works when the rule is specific and enforceable. It stops working when you stack dozens of them. See the overexploration section below.

6. Pair every "don't" with a "do"

Warning-only documentation consistently underperformed documentation that paired prohibitions with a concrete alternative.

If you add Don't instantiate HTTP clients directly, pair it with Use the shared apiClient from lib/http with the retry middleware.

The first on its own makes the agent cautious and exploratory. The pair tells it what to do and moves on.

AGENTS.md files with 15+ sequential "don'ts" and no "dos" caused the agent to over-explore, stay conservative, and do less work. More on that below.

7. Keep your code modular, and AGENTS.md too

The best-performing agent docs described relatively isolated submodules. Mid-size modules, around 100 core files, with a 100–150 line AGENTS.md and a few reference documents, were where we saw the 10–15% cross-metric gains. Examples: UI components of the client, standalone services.

Huge, cross-cutting AGENTS.md files at the repo root underperformed module-level ones. But the document itself is only part of the story.

In our study, the worst-performing AGENTS.md files were the ones sitting on top of massive surrounding documentation. One module had 37 related docs totaling about 500K characters. Another had 226 docs totaling over 2MB. In both cases, removing just the AGENTS.md barely changed agent behavior. The agent kept finding and reading the surrounding doc sprawl, and the sprawl was the problem.

If your AGENTS.md is good but your module has 500K of specs around it, the specs are what the agent is reading. Fix the documentation environment, not just the entry point.

The overexploration trap

This is the most common failure mode we observed, and it's essentially context rot.

Two patterns cause it:

1. Too much architecture overview.The agent gets pulled into reading documentation files, sometimes dozens of them, trying to "better understand the architecture." It loads tens or hundreds of thousands of tokens of context, and the output gets worse.

2. Excessive warnings

A big section of "don'ts" without matching "dos" produces a specific failure. The agent reads each instruction, tries to figure out whether it applies to the current task, and starts verifying its solution against every single warning. With 30–50 warnings, that means reading migration scripts, checking API version compatibility, and exploring auth middleware code, even on a task where none of it matters.

New patterns break old documentation

If you're introducing a pattern that doesn't exist in your codebase yet, AGENTS.md can actively steer the agent in the wrong direction.

Different patterns move different metrics. Pick the patterns that target the problem you actually have.

Before deciding how to migrate your existing documentation, it helps to know what the agent actually reads. We traced documentation discovery across hundreds of sessions. The discovery rates are lopsided enough to shape migration priorities.

• AGENTS.md files are discovered automatically in 100% of cases, for every file in the hierarchy from the working directory by most harnesses.
• References out of AGENTS.md are loaded on demand and read in over 90% of sessions when the agent has a reason to pull them in.
• Directory-level README.md files aren't auto-loaded, but the agent reads them in 80%+ of sessions when it's working in that directory.

After that, discovery falls off a cliff.

• Nested READMEs, meaning README files in subdirectories the agent isn't currently working in, get discovered only about 40% of the time.
• Orphan docs in _docs/ folders that nothing references get read in under 10% of sessions. One service in our codebase had 30K of detailed protocol design, throttling rules, and security docs in _docs/. The agent never opened most of them across dozens of sessions.

AGENTS.md is the only documentation location with reliable discovery. If something needs to be seen, it either lives there or is directly referenced from there. Moving the content into a referenced location is usually higher leverage than writing more docs.

Every company already has READMEs, architecture docs, and design specs scattered across the repo. Here's how to turn that into something an agent can actually use.

Should you just rename your README.md to AGENTS.md?

README.md and AGENTS.md serve different audiences, but they can be reused. Agents are good enough at codebase summarization now that human-oriented docs are less necessary than they used to be. You can either write an agentic doc from scratch, or reuse your README.md. If you reuse it, trim it aggressively. Keep it short, follow the patterns above, and cut any section that's there for humans to skim.

When to keep existing documentation

If the docs are high quality, current, to the point, and have examples, reuse them. Reference them from module- or folder-level AGENTS.md files. Don't put more than 10–15 references in a single AGENTS.md and keep the context lean. And audit the surrounding environment: if the module around your AGENTS.md has dozens of architecture docs and spec files, the agent will find and read them whether you reference them or not. A focused 150-line AGENTS.md sitting on top of 500K of surrounding specs won't save the agent from the specs.

AGENTS.md isn't the only path

Agents find reference material through grep and semantic search too. About half of all search-result hits in our traces came from those tools, not from AGENTS.md references. If you're keeping legacy documentation, make sure the docs include relevant code examples and descriptive text that's searchable. A well-structured AGENTS.md gives you more control over what ends up in the context window, but it isn't the only way in.

What this study didn't cover

We focused on one-shot trajectories and the agent's ability to finish coding tasks without human intervention. We didn't look at best practices for maintaining AGENTS.md over time, though we're exploring that now. We also didn't cover operational, interactive, or analytics tasks. Those are coming in future posts.