VS Code extensions 2026: What CTOs need to know
VS Code continues its dominance with over 70% developer adoption, but the extension landscape is shifting. AI coding assistants are no longer optional additions - they're becoming primary workflows.
What's changed
Roo Code, a newcomer challenging GitHub Copilot's lock on AI-assisted development, offers bring-your-own API key models and built-in PR review tools. This matters for APAC enterprises navigating data residency rules: unlike Copilot's Microsoft-hosted approach, Roo Code's flexibility lets teams route through compliant providers.
The extension enables codebase indexing and context management directly in the IDE. That's useful. Whether it justifies another AI tool in the stack depends on your team's existing commitments.
The persistent favorites
Utility extensions like Peacock (color-coding multiple workspace windows) and WakaTime (coding time analytics) remain popular for workflow organization. Console Ninja brings runtime logs inline with code, cutting context-switching during debugging sessions.
Code Spell Checker continues to catch typos that slip past reviewers. Unsexy, effective.
The enterprise angle
Three things to watch:
Extension sprawl is real. The Marketplace now exceeds 30,000 extensions with 30M+ monthly installs. Teams are loading 15-20 extensions per developer. That's configuration debt and potential security surface.
AI tools raise data questions. GitHub Copilot reaches 1M+ paid subscribers, with studies showing 55% productivity gains. But regulated sectors in APAC are still working through code exposure policies. Roo Code's multi-provider approach offers more control - at the cost of more configuration.
Native features improve. VS Code's built-in debugging and testing support reduces extension dependency for basic workflows. Worth auditing whether your teams actually need that extension bundle.
What this means in practice
For CTOs: Standardize your extension stack. Too many teams are running different productivity setups, creating onboarding friction and inconsistent development environments. The right 8-10 extensions beat 25 random installs.
The AI coding assistant question isn't if, but which - and under what data handling terms. That's a legal conversation as much as a technical one.
History suggests: Extensions that solve real workflow pain (GitLens, Prettier) stick around. Extensions that try to do everything get replaced by native features or better-focused alternatives. We'll see which category these AI tools fall into.