In my last couple of posts, I built a standalone MCP server and then embedded it in a VS Code extension. But what happens when you need to do more than reading local files? What if your extension needs to see what’s in the active editor, shape how the AI builds its prompts, or create a full conversational experience in the chat panel? That’s where VS Code’s AI extension APIs come in. In this post, I walk through the APIs that go beyond MCP – from direct model access to chat participants – and help you figure out when each one is the right fit.










