In early 2026 Microsoft built native AI into VS Code, free for consumer plans and part of Visual Studio Subscription for pros. For long-time Copilot Business payers, it's time to ask whether we still need it.
What the built-in AI does
- Contextual code completion (powered by an unnamed Microsoft model).
- Inline chat (
Ctrl+I) for guided edits. - Automatic refactor suggestions.
- Basic test generation.
- Doc string generation.
What it does NOT do
- Advanced multi-file editing (Copilot Workspace does).
- Agentic workflows (Claude Code, Cursor do).
- Model customization (no choice among GPT, Claude, Gemini).
- Deep whole-repo analysis.
Quality test
On 50 standard tasks from our flow (refactor, fix, test):
- VS Code built-in AI: 70% accepted without edits.
- Copilot: 78%.
- Claude Code: 82%.
- Cursor + Composer: 85%.
What we changed
- New colleagues in their first 3 months: VS Code built-in AI only (free, enough to learn).
- Senior devs: Cursor + Claude Code stayed.
- Cancelled Copilot Business for devs already using Cursor — annual saving: ~$3,500 for the team.
Verdict
VS Code built-in AI is "enough". Pro devs still need a dedicated tool. But the market is shifting: by 2027 Copilot may need to justify itself not with basic features, but with Workspace flows and enterprise integration. For now, pricing needs review.