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AWS Kiro: AI Coding with Stripe, Figma & Datadog

by Sophie Lin - Technology Editor

The End of AI Coding Bloat: How AWS Kiro Powers Signals a Smarter Future for Developers

Connecting five AI tools to your coding environment could be silently eating up 40% of your AI model’s processing power before you’ve even written a line of code. This “context rot,” as some are calling it, isn’t a theoretical problem – it’s a major drag on developer productivity and a significant cost driver. Amazon Web Services (AWS) is tackling this head-on with Kiro powers, a new system that dynamically loads AI expertise only when needed, promising a future where AI coding assistants are lean, efficient, and truly helpful.

The Problem with ‘Always-On’ AI

Modern AI coding assistants, like GitHub Copilot and others, have revolutionized software development. However, their traditional approach – loading all possible capabilities upfront – is fundamentally flawed. This constant influx of information overwhelms the AI, slows down responses, and dramatically increases token usage, which translates directly into higher costs. The Model Context Protocol (MCP), while enabling connections to essential services like Stripe and Figma, exacerbates the issue by adding layers of complexity and context overload.

Understanding ‘Context Rot’ and its Costs

“Context rot” isn’t just about sluggish performance. It’s about wasted resources. Developers are increasingly frustrated with burning through their token allocations on irrelevant information. The need for a more targeted approach is clear: developers want instant access to relevant workflows, not a struggling AI sifting through a mountain of unnecessary data. This inefficiency is particularly painful given the rising costs associated with powerful AI models like OpenAI’s Sonnet 4.5 and Opus 4.5.

How Kiro Powers Works: Expertise on Demand

AWS Kiro powers offers a radically different approach. Instead of loading everything at once, it packages specialized knowledge into dynamically-loaded bundles comprised of three key components: a steering file (POWER.md) that acts as an onboarding manual, the MCP server configuration for external service connections, and optional hooks for automation. When a developer mentions a specific task – say, “payment” – the Stripe power automatically activates, loading only the relevant tools and best practices. When the focus shifts to databases, Supabase takes over, while Stripe gracefully deactivates.

This on-demand loading dramatically reduces baseline context usage, approaching zero when no powers are active. The process is designed to be seamless: developers simply select “open in Kiro” and the IDE launches with everything pre-configured. This simplicity is a key differentiator, democratizing access to advanced AI agent configuration techniques previously reserved for expert developers.

Beyond Efficiency: Democratizing Advanced Development

AWS isn’t just solving a technical problem; it’s leveling the playing field. Previously, optimizing AI agents for specific tasks required deep expertise in crafting steering files and managing active tools. Kiro powers formalizes these advanced practices, making them accessible to all developers. As Deepak Singh, VP of developer agents and experiences at Amazon, explains, the goal is to allow anyone to benefit from the optimal context configurations built by experts at companies like Supabase and Stripe.

Dynamic Loading vs. Fine-Tuning: A Cost-Effective Alternative

Kiro powers also presents a compelling alternative to fine-tuning, the process of training AI models on specialized data. Fine-tuning is expensive and often impossible with closed-source models from Anthropic, OpenAI, and Google. Dynamic loading, on the other hand, is significantly cheaper and allows developers to leverage the power of existing frontier models without the need for costly retraining.

The Bigger Picture: Agentic AI and the Future of Development

Kiro powers is part of a broader AWS push into “agentic AI” – AI systems capable of autonomous operation. Alongside Kiro powers, AWS announced “frontier agents” designed for complex, multi-day projects. These two approaches are complementary: Kiro powers provides precise, efficient tools for everyday tasks, while frontier agents tackle larger, more ambiguous challenges. AWS is betting that developers need both to maximize productivity.

The launch of Kiro powers reflects a maturing AI development landscape. Early tools like GitHub Copilot introduced AI-assisted coding to the masses, but subsequent tools have become increasingly complex. AWS is positioning itself as the provider that understands the nuances of production software development at scale, leveraging its 20 years of experience running AWS and its massive internal engineering organization.

What’s Next: Cross-Platform Compatibility and a Collaborative Ecosystem

Currently, Kiro powers is integrated within the Kiro IDE. However, AWS is actively working towards cross-compatibility with other popular AI development tools, including command-line interfaces, Cursor, Cline, and Claude Code. The vision is a future where developers can “build a power once, use it anywhere,” creating a collaborative ecosystem where specialized expertise can be easily shared and reused. This interoperability will be crucial as the AI coding assistant market continues to expand.

The underlying principle driving Kiro powers – and the future of AI-assisted development – is simple: the most successful tools won’t be those that try to do everything, but those that are intelligent enough to know what to forget. What are your predictions for the evolution of AI-powered development tools? Share your thoughts in the comments below!

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