"AI-assisted coding changes the game for enterprises by shifting the bottleneck from coding to judgment, impacting software builds and roles."

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AI-assisted coding is reshaping enterprise software development by shifting the bottleneck from implementation to judgment. The author argues that software engineering is splitting into three tiers: tech companies where AI multiplies senior engineers, large enterprises that need platform guardrails and fractional senior expertise, and small businesses now able to afford custom software via 'software plumbers.' Key implications for enterprise leaders include investing in platform engineering, evolving SRE roles, rethinking the talent pipeline for future senior engineers, and shifting consulting models from body-shopping to fractional senior expertise. The buy-vs-build calculus also changes as custom software becomes cheaper, but judgment remains the scarce resource.

Software Engineering Splits in Three