Pulumi's integration with AI assistants through the Model Context Protocol (MCP) represents a significant advancement in Infrastructure as Code (IaC), streamlining the management of cloud resources by embedding AI directly into the development process. This integration allows AI assistants to interact with Pulumi's CLI and registry, facilitating real-time access to resource information and infrastructure management within the development environment, thereby minimizing context switching and speeding up workflows. In a practical demonstration using the AI-first code editor Cursor, the integration enabled the efficient provisioning of an Azure Kubernetes Service (AKS) cluster by automating tasks such as resource discovery, code generation, validation, and deployment, all within the editor interface. This approach eliminates the need for manual documentation searches and reduces the likelihood of errors, while the AI assistants assist with debugging and adapt to real-time developer inputs. The result is an accelerated development process that enhances productivity by keeping the workflow contained within a single, interactive environment, highlighting the potential of AI-enhanced IaC tools to transform the developer experience.