The Evolution: Tools, Skills, Context
The progression from basic AI capabilities to genuine organizational intelligence follows three phases: Tools give agents capability. Through MCP, agents can interact with your systems—query databases, call APIs, execute actions. But an agent with tools is like a new hire with system access. They can technically do things, but they don’t know how your organization actually operates. Skills give agents expertise. A skill is procedural knowledge—the “how to” that teaches an agent to use tools effectively. Skills capture the workflows, the edge cases, the decision trees. An agent with skills is like an employee who’s read all the SOPs. Context gives agents experience. This is the accumulated record of decisions, exceptions, and outcomes. Not just what the procedure says, but what happened last time. What exceptions were granted and why. What worked and what didn’t. An agent with context is like an employee who’s been there for years and remembers everything.| Phase | What the Agent Has | Analogy |
|---|---|---|
| Tools | Capabilities | New hire with system access |
| Skills | Procedures | Employee who’s read the SOPs |
| Context | Experience | Veteran who remembers everything |
Why Decisions Disappear
Traditional systems of record—your CRM, ERP, ticketing system—capture outcomes. The deal closed at this price. The ticket was escalated to Tier 3. The refund was approved. What they don’t capture is the reasoning. Why that price? Who approved the deviation? What precedent did they cite? What context informed the escalation? This reasoning exists, briefly, in the moment of decision. It lives in the conversation that preceded the action, in the judgment call someone made, in the memory of similar situations. Then it evaporates. The system records the final state, not the path that led there. When an AI agent executes a workflow, the same thing happens. The agent makes decisions—which tool to call, what parameters to use, how to handle an edge case. These decisions are informed by context, but that context disappears when the task completes. The next time a similar situation arises, the agent starts from scratch. This is the wall that prevents AI from accumulating genuine organizational intelligence.How Char Captures Context
Char’s architecture is designed to make decisions durable rather than ephemeral. The Hub sees everything. Every tool invocation—whether it’s a browser-based WebMCP tool, an internal MCP server, or an external service—flows through the user’s Tool Hub. The Hub doesn’t just route requests; it can observe patterns, log decisions, and build a record of what happened and why. Skills are living documents. Unlike static documentation, skills can be created and refined through conversation. When a user describes a workflow, the agent can capture it as a skill. When an exception occurs, the skill can be updated to reflect the new precedent. The knowledge base grows through natural interaction. Execution becomes precedent. When the agent handles a situation, that handling becomes a reference point. “Last time we saw this pattern, here’s what we did.” Over time, the agent doesn’t just follow procedures—it remembers outcomes.Skills as the Bridge
Skills occupy a unique position in this architecture. They’re explicit enough to be auditable, flexible enough to evolve, and structured enough to be machine-readable. A skill isn’t just instructions—it’s a boundary around a domain of knowledge. When a user asks something that matches a skill’s description, the agent loads that skill’s full context. This progressive disclosure means the agent can have access to vast procedural knowledge without being overwhelmed by irrelevant detail. The AgentSkills specification defines skills as folders containing aSKILL.md file with metadata and instructions. This simple format has profound implications:
Skills are versionable. Store them in git. Review changes in pull requests. Track who modified what and when. This matters for regulated industries where audit trails are required.
Skills are portable. A skill written for Char works in Claude Code, Cursor, and other compatible tools. You’re not locked into a proprietary format.
Skills are refinable. When the agent encounters an edge case, the skill can be updated. When a better approach is discovered, the instructions can change. Skills improve through use.
Most importantly, skills can be created from experience. The agent observes a workflow, captures it as a skill, and that knowledge becomes available for future use. Tribal knowledge becomes institutional knowledge.
The Decision Trace
A decision trace captures not just what happened, but the context that informed it:- What was the user trying to accomplish?
- What tools were available?
- What skills were loaded?
- What precedents were considered?
- What decision was made and why?
- What was the outcome?
From Individual to Organizational
The vision extends beyond individual users. When Char is embedded across an organization’s applications, patterns emerge:- How do different teams handle similar situations?
- What exceptions are being granted repeatedly? (Maybe the exception should become the rule.)
- What workflows are being invented ad-hoc? (Maybe they should become skills.)
- Where are decisions inconsistent? (Maybe alignment is needed.)

