The "must-haves" for AI automation โ when to use what, explained with analogies and real scenarios
Click any layer to learn what it does, when to use it, and see the analogy.
The 4 layers work together as a stack. Click any node to see how data flows through the system.
Click any scenario to see which layers you need and why.
Quick reference โ what each layer does, who owns it, and the analogy.
| Layer | What It Does | Analogy | Who Owns It | Effort | |
|---|---|---|---|---|---|
| ๐ | Steering | Global rules โ currency, PII, format, escalation thresholds | House rules for every guest | You (business) | 5 minutes |
| ๐ | Skills | Task-specific instructions โ your prompt template + activation rules + guardrails | Recipe card for a specific dish | You (business) | 15-30 minutes |
| ๐ | Hooks | Auto-triggers โ "when X happens, run Y" | Doorbell โ someone arrives, action starts | You + tech team | 5-10 minutes |
| ๐ | MCP | Connections to databases, APIs, file systems | Kitchen equipment โ oven, fridge, mixer | Tech team | Hours-days |
The exact steps to go from "I have a good prompt" to "I have a working agent."
Here's exactly how each layer translates to the tool you're using today.
| Layer | In Claude Cowork | How To Do It | Available? |
|---|---|---|---|
| ๐ Steering | Project Instructions | Write your global rules in the "Custom Instructions" field when you create a Project | โ Today |
| ๐ Skills | Project Knowledge + Structured Prompts | Upload your prompt template as a Knowledge file, or add structured instructions ("When asked about X, follow these steps...") | โ Today |
| ๐ Hooks | Scheduled Tasks | Set a recurring schedule (daily/weekly/monthly) and Claude runs your prompt automatically. Time-based, not event-based โ think "every Monday at 9am" rather than "when a file arrives." | โ Partial |
| ๐ MCP | Connectors + Computer Use | Connectors link to Microsoft 365 (Outlook, OneDrive, SharePoint, Teams). Computer Use lets Claude interact with desktop apps directly. For live database/API access, your tech team uses Kiro IDE or Claude Code. | โ Partial |
The same concept โ "make AI run without me asking" โ shows up differently across tools. Here's how hooks translate.
| Concept | Claude Cowork | Kiro IDE / Claude Code | Key Difference |
|---|---|---|---|
| ๐ Auto-trigger | Scheduled Tasks Time-based: "Every Monday at 9am, generate my report" |
Hooks Event-based: "When a file is saved, run lint" |
Clock vs Event. Cowork runs on a schedule you set. Hooks react to things that happen in real-time. |
| ๐ Global rules | Project Instructions Custom instructions per project |
Steering files .md files in .kiro/steering/ |
Same idea, different format. Both set "always-on" rules. Steering files can be conditional (only apply to certain file types). |
| ๐ Task instructions | Knowledge files + Prompts Upload docs, write structured prompts |
Skills Reusable prompt packages with activation rules |
Same idea, more structure. Skills add "when to activate" and "what NOT to do" on top of the instructions. |
| ๐ External access | Connectors (M365, Google) Computer Use (desktop apps) |
MCP servers Custom API/database connections |
Pre-built vs custom. Cowork has ready-made connectors. MCP lets developers build connections to anything. |
Context windows, when to start fresh, memory hygiene, and team collaboration. The practical guide to using Claude Cowork efficiently every day.
All prices in USD per 1M tokens. Verified 2026-06-16 against Anthropic's authoritative pricing data and AWS docs. Cache write/read multipliers cross-verified on the Bedrock pricing page (1.25ร / 2ร / 0.1ร).
aws bedrock list-foundation-models): Claude 4.x models are NOT available for direct in-region inference in ap-southeast-1. They route only via cross-region inference profiles like global.anthropic.claude-opus-4-7. Claude Opus 4.7 is hosted in US East (N. Virginia), Asia Pacific (Tokyo), Europe (Ireland), and Europe (Stockholm) โ Singapore calls cross to one of these. Pricing applies at the source region rate; no surcharge for cross-region routing. For data-residency-sensitive workloads, this matters.
Anthropic Claude models on Bedrock support only Standard, Reserved, and Batch. Flex (50% off) and Priority (75% premium) tiers are not available for Claude โ they apply to OpenAI, DeepSeek, Qwen, and Amazon models only.
Cowork's "Effort" setting (Low / Medium / High / Max in the conversation footer) controls Claude's extended thinking โ how many tokens Claude uses for internal reasoning before answering. Verified from the Anthropic SDK source: thinking tokens are billed as output tokens at the standard model rate. There is no surcharge for thinking โ but on Opus 4.7 at $25/M output, the cost adds up fast.
thinking.type: "enabled" + budget_tokens API returns a 400 error on Opus 4.7. Cowork's Effort slider uses the new thinking.type: "adaptive" + output_config: {effort: "low|medium|high|max"} API. Most users won't notice โ but if your tech team is migrating production code from Opus 4.6, they'll hit this.
Verified from AWS Bedrock docs: for all Claude 3.7 and later models (which means all Claude 4.x โ Opus 4.5/4.6/4.7, Sonnet 4/4.5/4.6, Haiku 4.5), every output token deducts 5 tokens from your TPM/TPD throttle quota. Your bill is unchanged โ but you'll hit ThrottlingException 5ร sooner than naive math suggests.
max_tokens deliberately โ it's reserved upfront against the quota, so leaving it at the default cap reduces concurrency. (2) Cache reads do NOT count against TPM/TPD quotas. Combined with the 5ร output burndown, prompt caching is disproportionately valuable on Claude 4.x โ both saves money AND saves throttle headroom.
If your team repeatedly sends the same context (a long Project Instructions block, a frequently-referenced policy document, a Skill definition), prompt caching slashes the per-message cost dramatically. Configured by your tech team via the Bedrock API; you benefit transparently.
Pricing data verified 2026-06-16. Source: bedrock-pricing-research.md (project root) โ full sources include AWS Bedrock pricing page, per-model docs, Anthropic SDK, and live aws bedrock list-foundation-models output for ap-southeast-1.
Starting fresh resets the context window. Project Instructions and auto-memory still load โ they're persistent. Two reasons to do it even on Opus 4.7: cost (every token is resent on every message) and task hygiene (mixed threads hurt quality).
Monthly memory habit: Ask Claude: "Summarise what you know about me and my projects from memory. Is anything outdated?" Fix stale entries. Ask Claude to "consolidate my memory โ merge duplicates, remove outdated entries."
Auto-memory is per account. Your colleague's Claude won't know what you decided โ unless it's in a shared file in the mounted folder. Create these three files so both Claude instances work from the same picture: