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Understanding Markdown

The simple skill that makes AI understand you better

Chris Boden
AI Skills Markdown Productivity

Markdown is the language AI speaks most fluently. It’s a simple way of formatting plain text using symbols like # for headings, * for emphasis, and - for lists. You’ve probably never needed it before, and that’s fine. But here’s why it matters now: every major AI assistant, including ChatGPT, Claude, and Gemini, reads and writes Markdown natively.

When you structure your prompts using Markdown, you’re communicating in a format the model already understands. That means clearer instructions, better-organised responses, and more control over what you get back. Learning the basics takes about fifteen minutes. The payoff lasts the rest of your AI-assisted working life.

Your Formatting Carries Meaning

When you write a document in Word or Google Docs, you make things look organised. Big headings. Bullet points. Tables. You can glance at the page and instantly see what’s important.

But here’s the thing: that organisation isn’t just for looks. It carries meaning.

Think about what you’re actually communicating when you format a document:

  • Headings tell readers “this is a new topic” and “this bit is less important than that bit”
  • Bullet points say “here’s a list of related things”
  • Tables say “compare these items across these categories”
  • Bold text says “pay attention to this”

You probably do this automatically. It’s how we make documents scannable and clear.

Project Report.docx

Project Report

Executive Summary

Key findings from our Q3 analysis indicate strong growth across all sectors.

  • Revenue increased 23%
  • Customer retention at 94%
  • New markets opened in APAC
MetricQ2Q3
Revenue$1.2M$1.5M
Users45K58K

Hover over any element to see its hidden formatting rules

The Problem: AI Can’t See Your Formatting

Here’s where it gets interesting. When you copy text from Word and paste it into ChatGPT, Claude, or any AI chat…

All that formatting disappears.

The AI doesn’t see your nice headings. It doesn’t see your bullet points as a list. It doesn’t see your table as a table. It just sees a blob of text.

Try it yourself. Copy the formatted content below, then paste it into the plain text area on the right.

Formatted Document

Project Overview

Key deliverables for the quarter:

  • Budget: $50,000
  • Timeline: 6 months
  • Team size: 4 people
Phase Cost
Planning $10,000
Development $30,000
Paste
Plain Text / AI Chat

This Is Why Markdown Exists

Markdown solves this problem in a beautifully simple way: it puts the structure into the text itself.

Instead of relying on invisible formatting that gets stripped away, Markdown uses simple characters that anyone can read:

  • A # at the start of a line means “this is a heading”
  • A - at the start means “this is a bullet point”
  • **text** means “this is bold”
  • A line of |---|---| means “this is a table”

The clever part? These symbols are just plain text. They don’t disappear when you copy and paste. They work everywhere.

# Project Overview

## Key Metrics
- **Budget**: $50,000
- **Timeline**: 6 months
- **Team size**: 4 people

| Phase | Cost |
|-------|------|
| Planning | $10,000 |
| Development | $30,000 |

> This project is **critical** for Q2 goals.
# Heading level
**text** Bold
- List item
|---| Table
> Blockquote

Notice something? You can read the raw Markdown without any trouble. It’s not confusing code. The # clearly signals “heading”. The - clearly signals “list item”. Even before it’s displayed nicely, you can see the structure.

Why It’s Called “Markdown”

The name is a deliberate play on words.

Markup is the general idea: adding symbols to plain text to show structure and meaning. HTML (what websites are made of) is a markup language. So are XML and LaTeX. They all use tags to describe what the text is.

Markdown is a deliberately simplified form of markup.

Markup formats like HTML wrap text in tags that look like code:

<h1>Heading</h1>

Markdown uses simple shortcuts that are easy to read:

# Heading

Same result. Much simpler to write and read.

The key difference:

  • Markup languages are designed for computers first, people second
  • Markdown is designed for people first, computers second

This is exactly why Markdown works so well with AI. It keeps the structure visible and readable, without cluttering the text with complicated code.

The simple way to remember it:

Markup is for machines. Markdown is for humans and machines.

Raw vs Rendered: Two Ways to See the Same Thing

When we talk about Markdown, there are two ways to look at it:

  1. Raw Markdown - the plain text with symbols like # and - and **
  2. Rendered Markdown - the pretty version where headings look like headings, bullets look like bullets, and bold text looks bold

They’re the same content. “Rendering” just means displaying the Markdown in a prettier way - turning those # symbols into actual big headings, and those - into proper bullet points.

Here’s what matters: AI reads the raw version (with all the symbols), and you see the rendered version (the pretty one).

Most tools give you both. ChatGPT and Claude show you rendered Markdown in their responses. Code editors like VS Code and Cursor let you preview rendered Markdown with a single click. Google Docs can even import and export Markdown.

Try It: Write Some Markdown

The best way to learn is to try it yourself. Type some Markdown in the left box below and watch it turn into formatted text on the right.

Try these:

  • Type # My Heading to create a heading
  • Type - Item one on a new line for a bullet point
  • Type **important** to make text bold
Raw Markdown (what you write)
Rendered (what humans see)

Start typing to see your Markdown rendered...

This is exactly what happens when you send Markdown to an AI - it reads the raw version (left) and understands the structure. When it responds, you see the rendered version (right).

Now Try It With Markdown

Let’s do that copy-paste exercise again, but with Markdown this time.

Copy the Markdown below and paste it into the text area. Notice how it stays exactly the same.

Markdown Document
# Project Overview

## Key Metrics
- **Budget**: $50,000
- **Timeline**: 6 months
- **Team size**: 4 people

| Phase | Cost |
|-------|------|
| Planning | $10,000 |
| Development | $30,000 |
Paste
AI Chat Input

Working with Markdown Files

When you start using AI coding tools like Claude Code, Cursor, or GitHub Copilot, you’ll notice something: instead of .docx files, you’ll be working with .md files.

What’s a .md file?

A .md file is just a plain text file with a different extension. That’s it.

Just like .txt files are plain text, .md files are plain text that happens to contain Markdown formatting. You could rename notes.md to notes.txt and it would still open and work exactly the same way - you’d just lose the hint that it contains Markdown.

The .md extension tells your computer and your code editor: “Hey, this file contains Markdown - you might want to render it nicely.”

Why do AI tools use .md files?

Because Markdown hits the sweet spot:

  • You can read it even with all the symbols showing
  • AI can understand it because the structure is clear
  • It looks nice when tools display it properly
  • It works everywhere - no special software needed

When you’re working in VS Code, Cursor, or similar editors, you can:

  1. Write Markdown in the raw text view
  2. Preview the rendered version with one click
  3. Switch between them as needed

Working with markdown files

Google Docs and Markdown

Here’s something many people don’t know: Google Docs can work with Markdown too.

You can paste Markdown into Google Docs and have it convert automatically to formatted text. You can also copy formatted text from Google Docs as Markdown. This makes it easy to switch between the familiar Google Docs experience and Markdown when you need it.

Using Markdown in Google Docs

What This Means for Working with AI

When you write in Markdown and send it to an AI:

  • The AI knows which bits are headings
  • The AI knows which bits are list items
  • The AI knows which bits are table data
  • The AI can give you back structured responses in the same format

And when the AI responds in Markdown (which most do by default), you can copy that response and use it anywhere - in documents, emails, notes - and the structure stays intact.

The Practical Takeaway

You don’t need to become a Markdown expert overnight. Start with just three things:

  1. Use # for headings - # Big heading, ## Smaller heading
  2. Use - for bullet points - just like you’d naturally write a list
  3. Use **text** for bold - wrap important words in double asterisks

That’s enough to make a real difference in how well AI understands what you’re asking for.

Word and Google Docs are great for documents that will be printed or shared as-is. But when you’re working with AI, Markdown is what actually gets through clearly.

Test Your Understanding

Before you move on, let’s check that you’ve got the key concepts.

1. When you copy formatted text from Word and paste it into an AI chat, the formatting is preserved exactly as you created it.
2. In Markdown, what does a # symbol at the start of a line create?
3. Why is Markdown particularly useful when working with AI?

Practice

We have a created a Markdown playground for you to practice and learn how to write Markdown.

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