Has the cost of building software just dropped 90%?
3 days ago
- #AI
- #Software Development
- #Productivity
- The cost of building software has dropped significantly due to AI agentic coding tools.
- AI agents reduce labor costs by automating tasks like writing test suites and converting business logic into APIs.
- Projects that previously took a month can now be completed in a week with AI assistance.
- Jevons Paradox suggests that cheaper software production will lead to increased demand for software solutions.
- Domain knowledge remains crucial, as human oversight ensures quality and efficiency in AI-assisted development.
- The combination of business domain experts and developers using AI tools can create highly effective teams.
- AI tools are improving rapidly, with newer models like Opus 4.5 showing better performance and understanding.
- Engineers are encouraged to embrace AI tools to stay competitive, as the industry is expected to change rapidly by 2026.
- AI tools are not just for greenfield projects; they can also help understand and improve legacy codebases.