Vercel AI SDK Expert

Build production-ready AI applications with streaming, tool calling, autonomous agents, and polished UI components. This skill covers the AI SDK Core (text generation, structured output, tools), AI SDK UI (React hooks), AI SDK RSC (experimental server components), and AI Elements (pre-built UI components).

Installation

# Core SDK + Anthropic provider (recommended)
npm install ai @ai-sdk/anthropic zod

# React hooks for UI
npm install @ai-sdk/react

# AI Elements components (requires shadcn/ui)
npx ai-elements@latest add message prompt-input conversation

Prerequisites:

• Node.js 18+
• Next.js (App Router recommended)
• Anthropic API key:

  ANTHROPIC_API_KEY

  in

  .env.local

• For AI Elements: shadcn/ui, Tailwind CSS 4, React 19

Quick Start: Chat with Tools

// app/api/chat/route.ts
import { anthropic } from "@ai-sdk/anthropic";
import { streamText, tool } from "ai";
import { z } from "zod";

export async function POST(req: Request) {
  const { messages } = await req.json();

  const result = streamText({
    model: anthropic("claude-sonnet-4-5"),
    messages,
    tools: {
      getWeather: tool({
        description: "Get weather for a location",
        parameters: z.object({
          location: z.string(),
        }),
        execute: async ({ location }) => ({
          temperature: 72,
          condition: "sunny",
        }),
      }),
    },
  });

  return result.toDataStreamResponse();
}

// app/page.tsx
'use client';
import { useChat } from '@ai-sdk/react';
import { Message, PromptInput } from '@/components/ai-elements';

export default function Chat() {
  const { messages, sendMessage, status } = useChat();

  return (
    <div>
      {messages.map(msg => (
        <Message key={msg.id} from={msg.role}>
          {msg.content}
        </Message>
      ))}
      <PromptInput
        onSubmit={({ text }) => sendMessage({ content: text })}
        disabled={status === 'streaming'}
      />
    </div>
  );
}

Core Concepts

1. Text Generation

streamText()

- Stream responses for interactive UIs

• Real-time token streaming to client
• Tool calling with automatic execution
• Callbacks:

  onChunk

  ,

  onFinish

  ,

  onStepFinish

• Returns:

  toDataStreamResponse()

  ,

  textStream

  ,

  fullStream

generateText()

- Synchronous generation for non-interactive tasks

• Await full completion (drafts, summaries, agents)
• Tool calling with multiple rounds
• Returns:

  text

  ,

  toolCalls

  ,

  toolResults

  ,

  usage

  ,

  steps

generateObject()

- Structured output with Zod schema validation

• Extract typed data from unstructured input
• Returns:

  object

  ,

  usage

  ,

  warnings

See references/core-api.md for full API reference.

2. Tool Calling

Define tools with

tool()

helper:

tool({
  description: "Present options to user as buttons",
  parameters: z.object({
    question: z.string(),
    options: z.array(z.string()),
  }),
  execute: async ({ question, options }) => {
    return { selected: null }; // UI-only tool
  },
});

Key Patterns:

• Multi-step: Use

  maxSteps

  or

  stopWhen

  for tool loops
• UI-only tools: Return minimal data, render in client
• Programmatic tools (Anthropic): Tools callable from code execution

See references/agents.md for workflow patterns.

3. Autonomous Agents

ToolLoopAgent

- Multi-step autonomous agent

import { ToolLoopAgent } from "ai/agents";

const agent = new ToolLoopAgent({
  model: anthropic("claude-sonnet-4-5"),
  instructions: systemPrompt,
  tools: { searchDocs, updateSpec, scheduleCall },
  stopWhen: (result) => {
    // Stop when UI-only tool called
    return result.steps.some(
      (step) =>
        "toolCalls" in step &&
        step.toolCalls.some((tc) => tc.toolName === "scheduleCall"),
    );
  },
});

const result = await agent.execute({ messages });
return createAgentUIStreamResponse({ result }).toUIMessageStreamResponse();

See references/agents.md for loop control and oyster patterns.

4. React Hooks (AI SDK UI)

useChat()

- Complete chat interface state management

• Messages: Array of

  UIMessage

  with parts (text, tool-call, tool-result)

• sendMessage()

  : Send with optional files, metadata
• Status:

  'ready' | 'submitted' | 'streaming' | 'error'

• Transports: DefaultChatTransport (HTTP), DirectChatTransport (in-process)

const { messages, sendMessage, status, stop, reload } = useChat({
  api: "/api/chat",
  onToolCall: ({ toolCall }) => {
    if (toolCall.toolName === "updateSpec") {
      setSpec(toolCall.input);
    }
  },
});

See references/ui-hooks.md for full hook APIs.

5. AI Elements Components

Pre-built, customizable components built on shadcn/ui:

• <Message>

  - Container with role-based styling (

  from="user" | "assistant"

  )

• <MessageResponse>

  - Markdown rendering with syntax highlighting

• <PromptInput>

  - Input with file upload, voice, submit button

• <Conversation>

  - Auto-scrolling container with empty states

• <Reasoning>

  - Collapsible thinking/reasoning display

• <Tool>

  - Tool execution visualization

Install:

npx ai-elements@latest add <component-name>

See references/elements-components.md for full component APIs.

6. React Server Components (Experimental)

⚠️ Not production-ready - Use AI SDK UI for production apps.

streamUI()

- Stream React components from server

const result = streamUI({
  model: anthropic('claude-sonnet-4-5'),
  prompt: 'Show me a chart',
  tools: {
    showChart: tool({
      parameters: z.object({ data: z.array(z.number()) }),
      generate: function* ({ data }) {
        yield <Spinner />;
        return <Chart data={data} />;
      },
    }),
  },
});

return result.value; // ReactNode

See references/rsc-api.md for RSC APIs.

Anthropic-Specific Features

While AI SDK is provider-agnostic, Anthropic Claude offers unique capabilities:

Extended Thinking

Models reason through complex problems before responding:

streamText({
  model: anthropic("claude-sonnet-4"),
  providerOptions: {
    anthropic: {
      thinking: { type: "enabled", budgetTokens: 12000 },
    },
  },
});

Render in UI with

<Reasoning>

component or access

reasoningText

in results.

Prompt Caching

Cache system prompts, long contexts, or tool definitions:

const systemMessage: CoreSystemMessage = {
  role: "system",
  content: largeContext,
  experimental_providerMetadata: {
    anthropic: { cacheControl: { type: "ephemeral", ttl: "1h" } },
  },
};

Reduces cost and latency for repeated contexts (>1024 tokens).

Code Execution

Run Python in sandboxed containers:

import { anthropic } from "@ai-sdk/anthropic";

streamText({
  model: anthropic("claude-sonnet-4-5"),
  tools: {
    codeExecution: anthropic.tools.codeExecution_20250825(),
    // Programmatic tools - callable from code
    searchDocs: tool({
      parameters: z.object({ query: z.string() }),
      execute: async ({ query }) => searchResults,
      experimental_allowedCallers: ["code_execution_20250825"],
    }),
  },
  providerOptions: {
    anthropic: {
      forwardAnthropicContainerIdFromLastStep: true, // Persist container
    },
  },
});

See references/anthropic-features.md for provider-defined tools, MCP connectors, context management, and more.

Error Handling

AI SDK provides robust error handling patterns:

try {
  const result = await streamText({ model, messages });
} catch (error) {
  if (error instanceof APICallError) {
    console.error("API Error:", error.statusCode, error.message);
  } else if (error instanceof InvalidToolArgumentsError) {
    console.error("Tool Error:", error.toolName, error.cause);
  }
}

Patterns:

• Retries: Wrap calls with exponential backoff
• Partial results: Handle

  toolResults

  even on errors
• Tool fallbacks: Catch in

  execute()

  , return error state
• Stream interruption: Use

  stop()

  from useChat

See references/error-handling.md for comprehensive patterns.

Common Workflows

1. Simple Chat:

   useChat()

   +

   streamText()

   with message API
2. Chat with Tools: Add

   tools

   object, render with custom UI
3. Autonomous Agent:

   ToolLoopAgent

   with

   stopWhen

   control
4. Structured Extraction:

   generateObject()

   with Zod schema
5. UI Streaming:

   createAgentUIStreamResponse()

   for tool streaming
6. File Upload:

   PromptInput

   with file handling, multi-modal messages

Architecture Patterns

Server-Side (API Route)

// app/api/chat/route.ts
import { anthropic } from "@ai-sdk/anthropic";
import { streamText } from "ai";

export async function POST(req: Request) {
  const { messages } = await req.json();

  const result = streamText({
    model: anthropic("claude-sonnet-4-5"),
    messages,
    system: buildSystemPrompt(),
    tools: createTools(),
  });

  return result.toDataStreamResponse();
}

Client-Side (React)

// components/chat.tsx
'use client';
import { useChat } from '@ai-sdk/react';
import { Message, PromptInput, Conversation } from '@/components/ai-elements';

export function Chat() {
  const { messages, sendMessage, status } = useChat({ api: '/api/chat' });

  return (
    <Conversation>
      {messages.map(msg => (
        <Message key={msg.id} from={msg.role}>
          <MessageResponse>{msg.content}</MessageResponse>
        </Message>
      ))}
      <PromptInput onSubmit={({ text }) => sendMessage({ content: text })} />
    </Conversation>
  );
}

Progressive Disclosure

• Start here: Quick start example, core concepts
• Deep dive: Reference files for specific APIs
• Real examples:

  examples/

  folder with production patterns
• Anthropic features: When you need advanced capabilities

Reference Files

Load as needed for detailed documentation:

• core-api.md - generateText, streamText, generateObject, tool definitions
• ui-hooks.md - useChat, useObject, transports, message handling
• agents.md - ToolLoopAgent, stopWhen patterns, oyster workflows
• rsc-api.md - streamUI, state management (experimental)
• elements-components.md - Full component prop tables
• anthropic-features.md - Thinking, caching, code execution, provider tools
• error-handling.md - Retry patterns, fallbacks, validation

Examples

See examples/ for complete implementations:

• tool-registry.tsx - Custom tool UI rendering
• chat-with-tools.tsx - Full chat with tool calling
• streaming-object.tsx - Structured data extraction
• elements-chat.tsx - Chat with AI Elements
• anthropic-thinking.tsx - Reasoning display
• agent-workflow.tsx - Multi-step autonomous agent

Best Practices

1. Use

   streamText()

   for UIs,

   generateText()

   for non-interactive tasks
2. Define tools clearly - Descriptive names, precise parameter schemas
3. Control loops - Use

   stopWhen

   or

   maxSteps

   to prevent runaway agents
4. Cache aggressively - System prompts, tool definitions, long contexts (Anthropic)
5. Handle errors gracefully - Retries, fallbacks, partial results
6. Throttle UI updates -

   experimental_throttle

   for smooth rendering
7. Type everything - Use Zod for tool parameters and structured output
8. Test tools independently - Mock

   execute

   functions for reliability
9. Monitor usage - Track tokens, costs, errors in callbacks
10. Progressive enhancement - Start simple, add tools/agents as needed

Resources

• Docs: https://ai-sdk.dev/docs
• AI Elements: https://ai-sdk.dev/elements
• Examples: https://github.com/vercel/ai
• Anthropic: https://docs.anthropic.com