
Anthropic just launched Claude Cowork. It’s their attempt to bring the power of AI coding to non-technical people.
But within hours of the launch, the risks of this new "friendly" interface were exposed almost immediately by developer James McAulay (virgildotcodes). In a viral review of Claude Cowork, he demonstrated a catastrophic failure mode: he asked the AI to simply "clean up" a directory, but because Cowork abstracts away the specific command approvals found in the terminal, it interpreted the request as a license to purge. The result was the permanent deletion of 11GB of critical data, including his entire folders of YouTube footage and LinkedIn assets, before he could stop it.
In our software agency with 20 engineers, we use Claude Code (the terminal-based tool) not just for coding, but to run our entire "Agency OS", sales, marketing, and delivery. Naturally, we were excited to see if Cowork could replace our terminal setup.
After testing it and comparing it to our current workflow, the answer is: Not yet.
In this guide, I'll break down the differences between Claude Cowork and Claude Code, show you exactly how I run an agency using AI in the terminal, and help you decide which tool is right for you.
Watch the video guide here:
Conceptually, Cowork is Claude Code wrapped in a nicer interface.
Claude Code unlocked something massive: for the first time, we could give an AI a task, walk away, and come back 10 minutes later to find real work done on files. But it required using the command line (Terminal), which scares a lot of people.
Cowork is Anthropic’s answer to that fear. It gives you file access, tool access, and agents working together in a visual UI.
The Problem: The "Fuzzy Middle"
Right now, Cowork sits in an awkward spot.
Reality Check: The power of Claude Code isn't that it runs in a terminal. The power is Context Control. Cowork tries to give you the outputs without giving you the precise control over what context is loaded, and that is where it struggles for professional use.
To run a professional agency, you need precision. You need to control exactly which files are read, which tools are triggered, and how the context is managed.
We use a specific folder structure I call Agency OS. We have different directories for Sales, Marketing, and Delivery.
Because we use the terminal (Claude Code), we can switch "modes" by simply changing directories. The AI knows that when we are in the Marketing folder, it should behave like a content strategist, and when we are in Delivery, it acts like a project manager.
Here is how this looks in practice across three key business functions.
When we create a video (like this one), we don't just ask a chatbot to "write a script." That produces generic garbage.
In Claude Code, we load a very specific stack of context:
We feed this context to Claude Code and ask it to generate the brief and script. Because we have granular control over the files, the output is 95% ready to go. Cowork currently struggles to handle this level of multi-file, specific referencing without getting confused.
This is where it gets crazy. I use MCP servers to connect Claude Code to my external tools without ever opening a browser.
The Scenario: A developer asks a clarifying question about a feature scope during a standup. We couldn't remember exactly what was agreed upon.
The Workflow (Time: 2 minutes):
I didn't open Fireflies. I didn't open ClickUp. I didn't break my flow.
I recently had a call with a lead who wanted a security audit on their hard-coded app. It was a simple job, not requiring a full proposal.
The Workflow:
The prospect had the follow-up in their inbox in seconds. That speed wins deals.
Cowork is the future of how normal people will interact with computers, but today, it is an early beta product with risks (like deleting 11GB of files).
Here is the decision framework:
Use Claude Cowork if:
Stick with Claude Code if:
Reality Check: Anthropic knows that Claude Code isn't just for coding. They are moving toward an OS that runs your business. But for now, if you want the superpower of an AI workforce, you still need to be comfortable in the command line.
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