However, our scores and “Verdicts” are based on real testing and community data, not sponsorship.
The AI coding war has officially escalated. For nearly a year, Cursor AI has sat comfortably on the throne, widely regarded as the “VS Code Killer” that made GitHub Copilot look like a toy.
But as we close 2025, the crown is slipping. With challengers like Windsurf and Lovable offering specialized “Agentic” workflows, many SMB founders are asking: “Is Cursor still the best, or just the first?”
Our investigation into the latest Cursor Composer update reveals that while the King isn’t dead, it has changed its strategy. It’s no longer just an autocomplete tool; it’s trying to be your entire engineering department. Here is the honest verdict.
Cursor AI Review: The “Agentic” Shift & Composer Mode
Most people use Cursor as a smarter VS Code. You press Ctrl+K, ask it to write a function, and it does. That was the standard in 2024.
By 2025, the real value lies in “Cursor Composer” (Agent Mode).
By pressing Ctrl+I, you open a workflow where Cursor can edit multiple files simultaneously.
Imagine you want to “Add a Dark Mode toggle to the dashboard.”
- Old Way (Copilot): You ask for the CSS. Then you ask for the React component. Then you ask for the state logic.
- Cursor Composer: You type the request once. It scans your entire codebase, creates the CSS file, updates the Tailwind config, modifies the Navbar component, and adds the context provider—all in one execution.
This “Multi-File Edit” capability is what separates true AI Agents from glorified chatbots.
Cursor AI Pricing: Understanding the “Credit Pool” Shift
Historically, Cursor used a simple “500 Fast Requests” bucket. However, in mid-2025, they began shifting towards a usage-based “Credit Pool” model. This is critical for heavy users to understand.
| Plan Tier | Key Specs & Limits |
|---|---|
| Hobby (Free) | 2,000 Completions (Autocomplete) Limited Premium Requests: Access to Claude 3.5/GPT-4 is heavily capped. Trial: 2-Week Pro Trial usually included. |
| Pro ($20/mo) | New Model: Usage-based Credit Pool (approx $20 value tied to API usage). Slow Requests: After credits deplete, requests are heavily rate-limited and can be very slow (no longer strictly “unlimited”). Feature: Privacy Mode (Must be manually enabled). |
| Business ($40/user) | Centralized Billing, SSO, and Privacy Mode enabled by default (with strict admin controls). |
SMB Tip: With the new credit-based system, the term “Unlimited” is less absolute than before. While casual users won’t notice the difference, power users coding 8+ hours a day may find themselves throttled faster than on the legacy plan.
Showdown: Cursor vs. Windsurf
Windsurf (by Codeium) is the closest competitor. Here is how they stack up for a business user.
| Feature | Cursor AI | Windsurf Editor |
|---|---|---|
| Context Awareness | Indexing (Good, but manual re-index often needed) | Cascade Flow (Deep, constant awareness) |
| Autocomplete | Cursor Tab (Predicts next edit, very accurate) | Standard Fill-in-middle |
| Model Choice | Agnostic (Claude, GPT-4o, Google Gemini) | Primarily focused on GPT-4 & Custom models |
| UX / Polish | Complex, power-user focused | Clean, beginner-friendly |
🕵️ Analyst’s Note: The “Lazy Delete” Risk
Despite its power, Cursor has developed a nasty habit in late 2025 that we internally label the “Lazy Delete.”
(Note: This is not an official error name, but a pattern observed by the community.)
When you ask Cursor Composer to refactor a large file (e.g., a 500-line Python script), it sometimes gets “lazy” to save tokens and outputs code like:
// ... existing code ...
The Danger: If you blindly click “Accept All,” it effectively deletes the rest of your code and replaces it with that comment.
The Fix: Always review the “Diff” view carefully before accepting changes in large files. Never blindly trust the “Apply” button on files >300 lines.
Pros & Cons (Real User Feedback)
✅ PROS (Why It’s King)
- Cursor Tab: The prediction engine is scary good. It knows where you want to go before you type.
- Composer Mode: The ability to edit 5+ files at once is a massive productivity booster for full-stack tasks.
- Model Flexibility: You can switch to Claude 3.5 Sonnet for coding and GPT-4o for logic instantly.
❌ CONS (The Dealbreakers)
- Performance Lag: Heavily reported “typing lag” on Windows machines after long sessions. Needs frequent restarts.
- Steep Learning Curve: The UI is dense with shortcuts (Cmd+K, Cmd+L, Cmd+I). Not for total beginners.
- Privacy Settings: Pro users must manually enable “Privacy Mode” to ensure code isn’t used for training. It is not automatic.
🏁 The SMB Verdict: Cursor AI
9.2/10“Still the undisputed King for professional developers.”
👍 Best For:
- Professional Developers / CTOs
- Complex, multi-file projects
- Teams needing granular model control
🚫 Not For:
- Absolute coding beginners (Try Lovable instead)
- Users with low-RAM laptops (Heavy resource usage)
Note: This score is based on hands-on testing and SMB use-cases, not on global market share.
FAQ: Common SMB Questions
Is Cursor better than GitHub Copilot?
In our testing, yes. For most SMB teams, Cursor felt significantly more capable than Copilot for multi-file and agentic workflows, though Copilot is catching up.
Can I use my own API keys?
Yes. You can input your own OpenAI or Anthropic API keys to keep working if you hit the credit limit. Note that feature availability for “Bring Your Own Key” may change as their infrastructure evolves.
Does Cursor steal my code?
If you enable “Privacy Mode” (available on Pro/Business), your code is not used for model training. However, Cursor may temporarily store encrypted snippets to power specific features, but these are not retained for training.
Does it work with VS Code extensions?
Yes. Cursor is a “fork” of VS Code. This means you can import all your favorite extensions, themes, and keybindings from VS Code in one click.
What is “Cursor Tab”?
Cursor Tab is their proprietary autocomplete model. Unlike standard autocomplete that looks at the current file, Cursor Tab predicts your next “edit” (e.g., jumping the cursor to the next variable needing change) based on your recent activity.
💬 Join the Discussion
Have you experienced the “Lazy Delete” bug in Cursor? Or has Composer saved you hours of work? Share your war stories below!
About the Author
Founder & Editor-in-Chief, MyAIVerdict.com
I am a tech educator and developer passionate about simplifying complex AI tools for small businesses. I approach every software review with a teacher’s mindset: strict grading, clear explanations, and zero fluff.
Disclosure: This review adheres to MyAIVerdict’s strict editorial integrity policy. No payment was accepted for this rating.