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AI-Powered Development: The Next Big Evolution in Software

By Matt Seitz

February 18, 2025

TL;DR  Last week’s launch of Wikitok, a Wikipedia scrolling app built in 90 minutes using AI tools like Claude and Cursor, highlighted a transformative moment in software development.  AI coding assistants are boosting productivity and lowering barriers to entry, but they also raise important questions about code quality, learning, and the future of the profession.

The emergence of AI coding assistants marks a significant shift in how software is created. Developers are now “pair-programming” with AI, using these tools to generate, complete, and debug code at unprecedented speeds. Those who can effectively leverage these AI tools are increasingly valued in the market.

Key Dynamics to Watch

A line graph showing that Cursor's  ARR has grown from $1,000,000 to $100,000,000 in about two years, much faster than other tech companies.
Source: Sacra
  • Code Quality: While AI can rapidly generate code, it can also create bugs.  Research shows 27% of AI-generated code contains security vulnerabilities. Developers will need to provide oversight and balance speed with reliability.
  • Impact on New Hires: As AI handles basic programming tasks, we need to reimagine how junior developers learn and grow, possibly rethinking the traditional “apprenticeship model”.
  • Democratization of Coding: AI tools could open programming to those without traditional STEM backgrounds, potentially leading to more innovative solutions.
  • Software Market Evolution: We may see a surge in specialized software for long-tail use cases and personal applications, which could shift the balance between SaaS and in-house solutions.

My Take

I started my career as a programmer in the early 1990s, when the latest rage was 4GLs (Fourth Generation Languages).  4GLs were once expected to eliminate traditional programming, but instead, they integrated into mainstream languages, driving an explosion of new applications.  Today’s AI tools feel remarkably similar; they won’t replace programmers but will redefine what it means to be one.

Going forward, the most successful developers will be the ones who can think critically, solve problems, and guide AI to produce better results.  As AI accelerates software creation, we’ll see a surge of new applications benefiting business and society.

Screenshot of a Tweet/X post from Andrej Karpathy that says "There's a new kind of coding I call 'vibe coding', where you fully give in to the vibes, embrace exponentials, and forget that the code even exists. It's possible because the LLMs (e.g. Cursor Composer w Sonnet) are getting too good. Also I just talk to Composer with SuperWhisper so I barely even touch the keyboard. I ask for the dumbest things like 'decrease the padding on the sidebar by half' because I'm too lazy to find it. I 'Accept All' always, I don't read the diffs anymore. When I get error messages I just copy paste them in with no comment, usually that fixes it. The code grows beyond my usual comprehension, I'd have to really read through it for a while. Sometimes the LLMs can't fix a bug so I just work around it or ask for random changes until it goes away. It's not too bad for throwaway weekend projects, but still quite amusing. I'm building a project or webapp, but it's not really coding - I just see stuff, say stuff, run stuff, and copy paste stuff, and it mostly works."
Source: X post

Articles

New Research Reveals AI Coding Assistants Boost Developer Productivity by 26%

IT Revolution

“The headline 26% increase in completed tasks is a significant finding that could have far-reaching implications for software development teams. This productivity boost could potentially allow companies to deliver software projects faster, reduce time to market for new features, or tackle more complex challenges with existing resources.

Junior-level developers saw productivity boosts of 21% to 40%.  In contrast, long-tenure and senior developers saw more modest gains of 7% to 16%.  This suggests that AI coding assistants could be a powerful tool for onboarding new developers, accelerating the productivity ramp-up for new hires, and potentially narrowing the productivity gap between junior and senior developers.”

The future belongs to idea guys who can just do things

Geoffrey Huntley

“There, I said it. I seriously can’t see a path forward where the majority of software engineers are doing artisanal hand-crafted commits by as soon as the end of 2026. If you are a software engineer and were considering taking a gap year/holiday this year it would be an incredibly bad decision/time to do it.

The 70% problem: Hard truths about AI-assisted coding

Elevate

“This ‘70% problem’ suggests that current AI coding tools are best viewed as:  Prototyping accelerators for experienced developers, learning aids for those committed to understanding development, MVP generators for validating ideas quickly. But they’re not yet the coding democratization solution many hoped for. The final 30% – the part that makes software production-ready, maintainable, and robust – still requires real engineering knowledge.

Despite these challenges, I’m optimistic about AI’s role in software development. The key is understanding what it’s really good for: 

  • Accelerating the known: AI excels at helping us implement patterns we already understand. It’s like having an infinitely patient pair programmer who can type really fast.
  • Exploring the possible: AI is great for quickly prototyping ideas and exploring different approaches. It’s like having a sandbox where we can rapidly test concepts.
  • Automating the routine: AI dramatically reduces the time spent on boilerplate and routine coding tasks, letting us focus on the interesting problems.”

Security Weaknesses of Copilot-Generated Code in GitHub Projects

ACM Digital Library

“We found that out of the 733 generated code snippets, 27.3% of them contained security weaknesses…At the same time, we can see that more than half of the code snippets containing security weaknesses have more than one security issue.