I sit down with Ras Mic to break down how AI agents actually work and why most people are using them wrong. Ras Mic explains the mechanics of context windows, makes the case that agent md files are largely unnecessary, and shares his step-by-step methodology for building custom skills that make agents dramatically more productive. Whether you're coding with Claude Code or automating workflows with OpenClaw, this episode gives you the foundational knowledge to stop wasting tokens and start getting real results from your AI tools.Timestamps00:00 – Intro00:42 – The Models Are Good Now01:20 – How Context Windows Actually Work04:55 – The Power of Skills09:17 – How to create Skills16:35 – Skill Maxxing19:05 – What you need too build a project20:40 – Recursively Building and Improving Skills29:23 – Context Window Management and Token Efficiency33:02 – Closing ThoughtsKey PointsThe models (Opus 4.6, GPT 5.4) are exceptionally good now — the differentiator is the context and harness you build around them.Agent md and claude md files get loaded into context on every single turn, burning tokens and degrading performance as the context window fills up. 95% of users can skip them entirely.Skills use progressive disclosure: only the name and description sit in context until the agent determines it needs the full file, saving thousands of tokens per conversation.The best way to create a skill is to walk through the workflow with the agent step by step, achieve a successful run, and then have the agent write the skill based on that real context.Recursively refine skills by feeding failures back into the agent and having it update the skill file so the same mistake is avoided going forward.Scale for productivity by starting with one agent and building up workflows before adding sub-agents — start simple, then expand.The #1 tool to find startup ideas/trends - https://www.ideabrowser.comLCA helps Fortune 500s and fast-growing startups build their future - from Warner Music to Fortnite to Dropbox. We turn 'what if' into reality with AI, apps, and next-gen products https://latecheckout.agency/The Vibe Marketer - Resources for people into vibe marketing/marketing with AI: https://www.thevibemarketer.com/FIND ME ON SOCIALX/Twitter: https://twitter.com/gregisenbergInstagram: https://instagram.com/gregisenberg/LinkedIn: https://www.linkedin.com/in/gisenberg/FIND MIC ON SOCIALX/Twitter: https://x.com/RasmicYoutube: https://www.youtube.com/@rasmic