2025 Powerful AI Agent in VSCode | Building an Ultimate Local Language Model Coding Assistant with Ollama
“Watching an AI Agent in VSCode automatically fix bugs, generate complete feature modules, and even proactively suggest architecture improvements, I realized that the rules of software development have forever changed.”
This is not a scene from a sci-fi movieโit is the reality every developer can experience in 2025. An AI Agent is no longer just a simple code-completion tool. It has evolved into an intelligent programming partner capable of understanding context, making autonomous decisions, and even collaborating across multiple models.

Contents
What is an AI Agent?
If traditional AI was just a โchatting tool,โ an AI Agent is the assistant that can โdo things on its own.โ
| Feature | Traditional AI | AI Agent |
|---|---|---|
| Capability | Can only chat, answer questions, or provide suggestions | Understands context, reasons about goals, and takes autonomous actions |
| Behavior | Passive โ responds when asked | Active โ plans and executes tasks proactively |
| Context Awareness | Limited or none | Deep understanding of environment and intent |
| Outcome | Gives advice or information | Produces tangible results or completed tasks |
| Role | Conversational assistant | Autonomous collaborator and executor |
Core Operating Mechanism of AI Agents
An AI Agent is no longer a single model. It is a system with intent and action capabilities (an Intelligent Agent). Even using only Gemma3, it can independently manage the entire workflow from planning to generation:
- Generating code
- Writing technical documentation and README files
- Understanding requirements
- Planning project architecture
Installing the Gemma3 Model
Assuming you have VSCode, the Continue extension, and Ollama installed (if not, refer to previous tutorials for Ollama setup):
- Download Gemma3 model:
ollama pull gemma3:27b
ollama list
Check that the download succeeded and verify the model size.
- Start the local service:
ollama serve
- Quick test:
curl http://localhost:11434/api/generate -d '{"model":"gemma3:27b","prompt":"Hello"}'
If you receive a JSON response, the API is working correctly.
Installing the Continue Extension
- Open VSCode and search for the Continue extension.
- Open the configuration file:
~/.continue/config.yaml - Add the Gemma3 configuration:
name: LocalAI-Gemma
version: 1.0.0
schema: v1
models:
- name: Gemma3 27B (Doc Agent)
provider: ollama
model: gemma3:27b
roles: [chat, edit, apply]
defaultCompletionOptions:
temperature: 0.3
context:
- provider: file
- provider: code
- provider: diff
- provider: terminal
rules:
- Give concise and clear answers
- Always provide code examples if possible
- Explain your reasoning when making architectural decisions
prompts:
- name: generate_flask_project
description: Generate a full Flask project structure with blueprints, models, and config
prompt: |
Please generate a complete Flask project structure with main app, blueprints, models, and config files.
Explain each file and folder briefly.
Provide the code in markdown code blocks.
mcpServers: []
data: []
AI Agent Collaboration in Practice
Example Requirement:
- โGenerate a complete Flask project including app, blueprints, models, config, and README.โ
Workflow Demonstration:
- Open VSCode and activate the Continue extension.
- Switch to Agent mode.
- Select the Gemma3 27B model.
- Input the prompt:
Generate a complete Flask project with blueprints, models, config, and README.
AI Agent AutoโGenerated Results
- Project structure
flask_project/
โโโ app/
โ โโโ __init__.py
โ โโโ main.py
โ โโโ config.py
โโโ blueprints/
โ โโโ api/
โ โ โโโ __init__.py
โ โ โโโ routes.py
โ โโโ auth/
โ โโโ __init__.py
โ โโโ routes.py
โโโ models/
โ โโโ user_model.py
โ โโโ article_model.py
โโโ extensions.py
โโโ requirements.txt
โโโ README.md
app/__init__.py
from flask import Flask
from app.config import Config
from extensions import db, migrate
from blueprints.api import api_bp
from blueprints.auth import auth_bp
def create_app():
app = Flask(__name__)
app.config.from_object(Config)
db.init_app(app)
migrate.init_app(app, db)
app.register_blueprint(api_bp)
app.register_blueprint(auth_bp)
return app
app/main.py
from app.__init__ import create_app
app = create_app()
if __name__ == '__main__':
app.run(debug=True)
app/config.py
import os
class Config:
DEBUG = True
SQLALCHEMY_DATABASE_URI = os.environ.get('DATABASE_URL', 'sqlite:///db.sqlite')
SQLALCHEMY_TRACK_MODIFICATIONS = False
SECRET_KEY = os.environ.get('SECRET_KEY', 'your-secret-key')
blueprints/api/__init__.py
from flask import Blueprint
api_bp = Blueprint('api', __name__, url_prefix='/api')
from blueprints.api import routes
blueprints/api/routes.py
from flask import jsonify
from blueprints.api.__init__ import api_bp
@api_bp.route('/test', methods=['GET'])
def test():
return jsonify({'message': 'API test successful!'})
blueprints/auth/__init__.py
from flask import Blueprint
auth_bp = Blueprint('auth', __name__, url_prefix='/auth')
from blueprints.auth import routes
blueprints/auth/routes.py
from flask import jsonify, request
from blueprints.auth.__init__ import auth_bp
@auth_bp.route('/login', methods=['POST'])
def login():
data = request.get_json()
# Example only โ replace with real authentication logic
if data.get('username') == 'test' and data.get('password') == 'password':
return jsonify({'message': 'Login successful!'})
else:
return jsonify({'message': 'Invalid username or password'}), 401
- User๏ผ
models/user_model.py๏ผ
from extensions import db
class User(db.Model):
id = db.Column(db.Integer, primary_key=True)
username = db.Column(db.String(80), unique=True, nullable=False)
password = db.Column(db.String(120), nullable=False)
def __repr__(self):
return f'<User {self.username}>'
- Article๏ผ
models/article_model.py๏ผ
from extensions import db
class Article(db.Model):
id = db.Column(db.Integer, primary_key=True)
title = db.Column(db.String(100), nullable=False)
content = db.Column(db.Text, nullable=False)
user_id = db.Column(db.Integer, db.ForeignKey('user.id'), nullable=False)
user = db.relationship('User', backref=db.backref('articles', lazy=True))
def __repr__(self):
return f'<Article {self.title}>'
extensions.py
from flask_sqlalchemy import SQLAlchemy
from flask_migrate import Migrate
db = SQLAlchemy()
migrate = Migrate(db, db)
requirements.txt
Flask
Flask-SQLAlchemy
Flask-Migrate
- README.md
# Flask Project Template
## Description
This is a basic Flask project template with blueprints, models, and configuration. It provides a starting point for building web applications with Flask.
## Dependencies
- Python 3.6 or higher
- Flask
- Flask-SQLAlchemy
- Flask-Migrate
## Installation
1. Clone the repository:
```bash
git clone [your-repository-url]
cd [your-project-directory]
```
2. Create a virtual environment (recommended):
```bash
python3 -m venv venv
source venv/bin/activate # On Linux/macOS
venv\Scripts\activate # On Windows
```
3. Install dependencies:
```bash
pip install -r requirements.txt
```
4. Initialize the database:
```bash
flask db init
flask db migrate
flask db upgrade
```
## Running the Application
```bash
flask run
```
The application will be accessible at `http://127.0.0.1:5000/`.
## API Endpoints
- `/api/test`: Returns a JSON message indicating the API is working.
- `/auth/login`: Simulates a login endpoint.
## Project Structure
```
flask_project/
โโโ app/
โ โโโ __init__.py
โ โโโ main.py
โ โโโ config.py
โโโ blueprints/
โ โโโ api/
โ โ โโโ __init__.py
โ โ โโโ routes.py
โ โโโ auth/
โ โโโ __init__.py
โ โโโ routes.py
โโโ models/
โ โโโ user_model.py
โ โโโ article_model.py
โโโ extensions.py
โโโ requirements.txt
โโโ README.md
```
Conclusion
An AI Agent is an intelligent system capable of autonomous thinking and action. It deeply understands human intent, plans execution steps, and can complete complex tasks. Unlike traditional AI, which passively responds, an AI Agent actively analyzes requirements, formulates strategies, selects tools, and executes concrete actionsโfrom creating full project structures to writing functional code and generating technical documentation, ensuring the final output meets expectations.
More advanced scenarios involve multiple AI Agents forming collaborative networks, working like professional teams. Agents with different specializationsโarchitecture reasoning experts, code implementation experts, documentation expertsโcoordinate efficiently, forming a high-performance workflow. This collaboration not only improves task quality but also expands the complexity of problems that can be addressed.
This full โunderstanding-to-executionโ capability chain marks a shift from passive tools to proactive partners. AI Agents are no longer just chatbots answering questionsโthey are intelligent assistants that take action, revolutionizing human workflows and redefining the future of human-machine collaboration.




