In the previous chapter, The Memory Layer (History & Decisions), we gave our agents a memory. They can remember what happened yesterday ("I fixed the login bug") and the rules of the team ("Always use TypeScript").
However, there is a difference between remembering an event and knowing a skill.
Imagine Kane, our Backend Developer agent. Last week, he spent 3 hours figuring out the complex command to deploy your app to AWS.
If you ask him to deploy again today, he might search his history.md (his diary) and find a messy log of trial and error. Or worse, he might try to figure it out from scratch again.
You don't want a diary of mistakes. You want a Instruction Manual.
In Squad, a Skill is a specific file that teaches an agent how to perform a specific task.
Think of them like Merit Badges in the Scouts or a Recipe in a Cookbook.
history.md): A chronological diary. ("I cooked lasagna on Tuesday.")SKILL.md): A reusable recipe. ("Here is the exact recipe for lasagna.")When an agent learns a new trick, they write a Skill file. The next time any agent needs to do that task, they read the file and instantly become an expert.
Skills live in their own directory inside your team folder:
.ai-team/
โโโ skills/
โโโ aws-deployment/
โ โโโ SKILL.md
โโโ run-database-migrations/
โโโ SKILL.md
Each folder represents one specific capability. Because they are files, you can copy-paste a skill from one project to another!
Let's look at what is inside a skill file. It uses a mix of metadata (frontmatter) and instructions.
<!-- .ai-team/skills/aws-deployment/SKILL.md -->
---
name: "AWS Deployment"
confidence: "high"
---
## The Procedure
1. Install the CLI: `pip install awscli`
2. Login: `aws configure`
3. Deploy: `aws s3 sync ./dist s3://my-bucket`
## Common Errors
- If you get "Access Denied", check the IAM user policy.
Notice the confidence: "high" line?
Let's say you have a specific way you want unit tests to be run. You don't want to explain it every time.
You (or the agent) creates a file at .ai-team/skills/run-tests/SKILL.md.
---
name: "Run Unit Tests"
description: "How to run the test suite locally"
---
## Command
Run `npm test -- --watch`
## Pattern
- ALWAYS write a failing test first (Red-Green-Refactor).
- Mock database calls using `jest.mock`.
The next time you say: "Ripley, run the tests," the Coordinator sees the keyword "tests." It loads this file and feeds it to Ripley. She instantly knows to use jest.mock without being told.
When you talk to an agent, the system acts like a Librarian looking for relevant books.
The Coordinator scans the skills directory. Let's look at how the code (simplified from index.js) discovers these capabilities during an export or run.
The system iterates through the folders in .ai-team/skills/ to see what badges the team has earned.
// Reading the library of skills
const skillsDir = path.join(dest, '.ai-team', 'skills');
const skills = [];
// Loop through every folder in /skills
for (const entry of fs.readdirSync(skillsDir)) {
// Find the SKILL.md file inside
const skillFile = path.join(skillsDir, entry, 'SKILL.md');
if (fs.existsSync(skillFile)) {
// Read the content to send to the Agent later
skills.push(fs.readFileSync(skillFile, 'utf8'));
}
}
This loop builds a library of knowledge that is ready to be injected into the AI's context window whenever needed.
While the full routing logic happens inside the AI provider (like Copilot), the Coordinator prepares the data. It checks if an agent has a "Skill Match."
If you ask for "Deployment," and the DevOps Agent has a high-confidence skill for it, the Coordinator knows that agent is the best person for the job.
The Skills System turns your AI team from temporary helpers into experts.
At this point, your team has:
However, there is still one major limitation: They are trapped in a box. They can write code and tell you what to do, but they can't actually click the deploy button or check your Jira ticket.
In the next chapter, we will give them hands and eyes to interact with the outside world.
Next Chapter: External Integration (MCP & Workflows)
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