Tech Chiefs Curb AI Token Costs to Protect Software Margins
Ai4
Enterprise leaders are shrinking development teams and shifting workloads to self-hosted AI models after unmonitored coding agents triggered severe expense overruns.
## Background
Published on YouTube by Ai4 on August 21, 2026, this panel discussion explores how business and technology leaders are reimagining software strategies amidst the rapid rise of coding automation. Featuring executives from eXp Realty, Piper Sandler, Nutanix, and Digital.ai, the session focuses on adopting AI tools, adapting team roles, and redesigning development workflows.
## TL;DR
Industry executives share real-world insights on implementing AI-driven coding tools and decentralized citizen developer programs that streamline workflows and cut software costs. The panel discusses shifting to compact "one-pizza teams," managing token expenses through two-tier model routing, and overcoming process bottlenecks with robust governance. Looking ahead, the speakers highlight autonomous bug-fixing loops, the necessity of an "Agent Ops" framework, and how domain expertise is becoming more crucial than traditional engineering backdrops in driving business value.
## Atmosphere & style
The panel is fast-paced, pragmatic, and highly collaborative, jumping straight into actionable executive insights without fluff. The speakers converse with a candid, peer-to-peer dynamic, combining humorous banter about shrinking team sizes with sharp, cautionary tales regarding token bill shock and organizational friction. The atmosphere feels forward-thinking yet grounded in enterprise reality, balancing excitement for automated coding loops with a sober focus on governance and change management.
## Key takeaways
- [01:40](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=100s) Citizen developer initiatives allow domain experts to build tailored internal tools while enabling organizations to sunset millions in annual SaaS software spend.
- [01:40](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=100s) Design and generative AI tools are compressing repetitive, high-volume tasks—such as creating multi-slide presentation decks—from weeks down to minutes.
- [05:17](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=317s) Specialized security agents like the Quick Protect Agent allow non-security professionals to harden mobile apps and web endpoints against offensive AI attacks.
- [05:17](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=317s) To prevent runaway compute costs, enterprises should adopt a two-tier model strategy: self-hosting 80% of tokens while reserving expensive third-party LLMs for 10–20% of workloads.
- [10:00](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=600s) Enterprise AI rollouts stall mainly due to unchanged legacy human processes, requiring smaller team sizes, updated testing, and revised governance frameworks.
- [10:00](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=600s) AI-assisted development is shrinking optimal software engineering team sizes from Amazon's traditional two-pizza teams down to three-to-four person 'one-pizza teams'.
- [17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) Successful internal AI transformations rely on a 'three-legged stool' team model consisting of an AI forward-deployed engineer, a subject matter expert, and a change management specialist.
- [20:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1222s) Subject matter expertise and domain context are increasingly taking precedence over classical software engineering backgrounds when driving practical AI solutions.
- [23:36](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1416s) Measuring developer output by line count is obsolete; leaders must focus on developer velocity through pull requests and resolved stories, while actively managing token usage to avoid cost overruns.
- [23:36](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1416s) Intelligent model routing between cost-effective on-premise hardware and premium frontier LLMs protects both corporate margins and proprietary IP.
- [28:10](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1690s) Autonomous bug-fixing loops that triage issues and automatically submit pull requests for human review are poised to become standard industry practice.
- [28:10](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1690s) As hundreds of millions of knowledge workers gain access to automated logic tools, a dedicated 'Agent Ops' governance layer becomes essential to prevent widespread software fragmentation.
- [31:52](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1912s) According to Jevons' paradox, cheaper computational intelligence will dramatically increase overall demand for software creation rather than reduce it.
- [31:52](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1912s) Direct app creation by frontline employees eliminates intermediate communication bottlenecks, but requires ten times stricter centralized governance to manage security risks.
- [34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) While safe code deployment is an operational necessity, the ultimate value of automated coding lies in the strategic business impact and user value created.
## Detailed walkthrough
### [00:04](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=4s) Panel Introduction and Executive Introductions
The panel opens with four industry leaders coming together for a concise, 30-minute discussion on coding automation and software strategy. To maximize the time available for actionable insights, the speakers jump straight into brief introductions around the room:
- **Debojyoti Dutta (Debo)**, Chief AI Officer at Nutanix, explains his dual focus: building Nutanix's multi-cloud platform to run AI agents seamlessly across private and public clouds, while simultaneously leveraging that same infrastructure internally to drive employee productivity.
- **Derek Holt**, CEO of Digital.ai, shares that his company works with over half of the Fortune 100, focusing on upstream and downstream AI solutions—from coding agents to full delivery acceleration—to unlock enterprise value.
- **Kenny Vargas**, Managing Director and Head of Software & Data Engineering at Piper Sandler, oversees the deployment of AI, data, and technology solutions across investment banking sectors.
- **Seth Siegler**, Chief Innovation Officer at eXp Realty, highlights his role in guiding AI transformation for the world's largest single real estate brokerage, supporting over 80,000 agents across 29 countries.
---
[01:40](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=100s) Real-World AI Initiatives: Citizen Developers and Pitch Decks
The panelists share concrete, high-impact AI coding and workflow initiatives currently deployed within their organizations:
- **eXp Realty's Citizen Developer Program**: Seth Siegler describes partnering a year and a half ago with Lovable—when it was still a tiny startup—becoming their first enterprise customer. eXp Realty granted non-technical staff access to the "vibe coding" platform, building upon prior initiatives with OpenAI Enterprise ChatGPT and custom GPTs. By encouraging domain experts to build tools directly for their day-to-day workflows, eXp saw an explosion of hyper-focused internal applications that executive leadership wouldn't have even known to build. Beyond solving operational friction, this decentralized innovation allowed eXp Realty to sunset several million dollars in annual SaaS software spend in favor of in-house solutions, complete with safety and security guardrails.
- **Automating Investment Banking Decks at Piper Sandler**: Kenny Vargas highlights how investment bankers historically churned through repetitive work across PowerPoint, Excel, and Outlook. Putting together a Confidential Information Presentation (CIP)—an 80 to 100-slide deck—used to consume weeks of work for analyst and associate classes. By piloting design platforms like Gamma and Canva, bankers can now click a button, instantly generate four or five layout variations, and shift their focus toward storytelling and strategic positioning, compressing preparation cycles from weeks to minutes.
---
[05:17](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=317s) Security Agents and the Shift to Agentic SDLC
The discussion transitions to enterprise-grade AI tools applied outside simple code generation:
- **Digital.ai's Quick Protect Agent**: Derek Holt points out that in large enterprises, developers spend roughly 90% of their time on decision-making, governance, compliance, security, and quality control rather than writing raw code. Highlighting recent cybersecurity trends, Derek notes that while backend cloud infrastructure is typically secure, the vast majority of mobile apps and websites in public app stores remain unprotected endpoints, vulnerable to offensive AI attacks. Because specialized security skills are scarce, Digital.ai introduced the "Quick Protect Agent," enabling non-security experts to harden apps and web endpoints up to 90–95% of what senior security professionals achieve.
- **Nutanix's Agentic Journey and "Owning Your Intelligence"**: Debo Dutta outlines Nutanix's evolution over the past two years from "AI assist" mode into fully autonomous "agentic" workflows across the Software Development Life Cycle (SDLC). To prevent runaway compute costs and manage security, Nutanix developed *Nutanix Enterprise AI*. This solution features an enterprise gateway that governs model and Model Context Protocol (MCP) server access while enabling execution of open/local LLMs alongside frontier models. Debo advises enterprises to adopt a two-tier intelligence strategy: "Own your intelligence, don't just rent all of it."
- Enterprises should rely on expensive third-party foundation models for only 10–20% of workload tokens.
- The remaining 80% of tokens should run on locally owned or self-hosted models to avoid unbounded per-token pricing.
---
[10:00](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=600s) Rethinking Team Sizes, Processes, and Governance
The panel explores the operational friction encountered when moving AI coding experiments into production, drawing parallels to past technology shifts:
- **Team Dynamics and Process Bottlenecks**: Derek Holt observes that enterprise rollouts stall not because AI models lack capability, but because legacy human processes and organizational structures remain unchanged. Reflecting on the early days of cloud computing, Derek notes that simply rehosting data center workloads to the cloud resulted in massive bill shock until companies re-architected applications into microservices. Similarly, AI-driven development demands smaller team structures, updated testing schedules, automated security checks, and revised governance frameworks.
- **The "One-Pizza Team"**: The speakers reflect on Amazon's classic "two-pizza team" rule, noting that AI-assisted engineering is shrinking optimal team sizes even further down to "three-to-four person teams" or "one-pizza teams." Kenny Vargas and Derek Holt banter that beneath the marketing buzz, AI agents calling other agents are conceptually similar to microservices executing code calls.
- **Managing Application Explosion**: As Seth Siegler begins to address how eXp Realty manages the rapid sprawl of citizen-developed software, he notes that an unmanaged explosion of web applications required pulling back slightly to enforce centralized governance and security oversight.
[17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) Talent Strategies: Reskilling, New Grads, and Change Management
Debojyoti Dutta outlines a two-pronged strategy for adapting to automated coding: upskilling existing staff to create efficient "one-pizza teams" where every member engages in higher-level thinking, alongside hiring new college graduates who are already being trained in AI-native paradigms. While university curricula are racing to keep pace with these shifts, Dutta predicts a vastly different talent pool within two years. Moderator Joe Olsen references a poignant LinkedIn post by Sarah Franklin, former CMO of Salesforce, who advised enterprise leaders to "either invest in training or invest in severance."
Derek Holt adds that while Digital.ai is actively hiring, the industry has always evolved through major paradigm shifts. Rather than forcing universal AI training, his company deploys a "three-legged stool" team structure for internal AI transformations: a forward-deployed AI engineer, a domain-specific subject matter expert, and a change management expert. Holt stresses that non-technical change management is often what prevents projects from failing or reverting to legacy workflows.
- **Talent Strategy:** Blends internal reskilling with targeted hiring of AI-native new graduates.
- **Three-Legged Stool Model:** Combines an AI forward-deployed engineer, a subject matter expert (e.g., billing expert), and a change management specialist.
- **Key Takeaway:** Unmanaged organizational resistance and lack of change management are the primary drivers of failed AI transformations.
---
[20:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1222s) The Rise of the Subject Matter Expert and Embedded Pods
Seth Siegler highlights the emergence of the generalist and subject matter expert, observing how accessible tools allow non-technical employees to directly solve domain problems. At eXp Realty, the international division built an AI-first operating system by pairing forward-deployed engineers with business experts. Similarly, their historic *SUCCESS* magazine division was transformed into an AI-first operation led by subject matter experts like Rachel and founder Glenn Sanford, proving that domain context has become more crucial than traditional engineering backgrounds.
Kenny Vargas echoes this shift in the heavily regulated financial sector at Piper Sandler, describing small embedded pods where engineers and business leaders work side by side. Because coding costs have plummeted, teams can instantly generate and iterate on three distinct UI options using tools like Claude or Codeium, gathering immediate feedback from bankers or clients rather than spending months building unused features.
- **Domain-First Approach:** Subject matter expertise is overtaking traditional classical software engineering backgrounds in driving practical AI solutions.
- **Rapid Prototyping:** Embedded pods leverage Claude or Codeium to present multiple live dashboard variations to end-users on the fly.
- **Organizational Impact:** eXp Realty successfully retooled its legacy *SUCCESS* magazine brand into an AI-first operation.
---
[23:36](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1416s) Token Costs, Measurement, and Model Routing
Addressing the economic realities of AI, Siegler shares a cautionary story about deploying Claude Code across eXp Realty's core engineering organization. Following widespread adoption, the team was stunned by the first month's bill—costs escalated dramatically without a corresponding surge in completed tickets, because developers were re-writing code or failing to delegate tasks to the model properly. Measuring success by line count is obsolete ("That's a robot's problem"); instead, leaders must track developer velocity through pull requests and resolved stories.
Holt points out that measuring software delivery has historically been an imprecise science, but rising CFO scrutiny is turning Software Engineering Intelligence into a top investment priority. He advocates for intelligent model routing—balancing expensive frontier LLMs with cost-effective on-premise models—to protect both proprietary IP ("alpha") and company margins. Dutta adds that Nutanix tracks three fundamental factory metrics regardless of the domain: *how much*, *how good*, and *how often*.
- **Cost Management:** Unmonitored token consumption can cause extreme cost overruns if developers fail to adapt their workflows to AI tools.
- **Model Routing Strategy:** CFOs and technical leaders are pushing for intelligent routing between on-premise hardware and premium frontier models.
- **Factory Performance Metrics:** Evaluates software automation through three baseline pillars: throughput (*how much*), quality (*how good*), and frequency (*how often*).
---
[28:10](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1690s) Automated Coding Loops and the Future of Agent Ops
Looking ahead to the coming year, Siegler describes eXp Realty's experiments with fully automated coding loops. When a bug report is logged, an automated routine triggers Claude Code to triage the issue and submit a pull request, leaving human developers only to review and approve the final code. Siegler predicts that these autonomous bug-fixing loops will become standard industry practice within six months. Vargas agrees, noting that the pace of agent development is parabolic and will soon move beyond manual context-feeding to concurrent multi-workflow execution.
Holt warns that as the broader workforce—nearly one billion knowledge workers compared to 50 million developers—begins creating custom business logic, enterprise software risks widespread fragmentation. Unchecked deployment will require a dedicated "Agent Ops" governance layer, mirroring what DevOps accomplished for classical software delivery.
- **Autonomous Bug Fixing:** Automated loops triage bug tickets, formulate solutions via Claude Code, and submit pull requests automatically.
- **DevOps to Agent Ops:** The democratization of AI tools among knowledge workers makes governing, testing, and maintaining autonomous agents an urgent enterprise priority.
- **Scale Contrast:** ~50 million global developers versus ~1 billion knowledge workers gaining access to automated logic tools.
---
[31:52](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1912s) The 18-Month Outlook: The Human-Led Software Factory
Dutta synthesizes the panel's predictions for the next 18 months across three core dimensions:
1. **People:** Compact "one-pizza teams" staffed by reskilled employees and universities producing AI-fluent graduates.
2. **Process:** Widespread adoption of automated "loop engineering" workflows.
3. **Technology:** Jevons' paradox taking effect, as cheap, high-powered intelligence dramatically scales up total demand for software creation.
Addressing concerns about non-technical employees automating the wrong business processes, Siegler and Dutta agree that frontline staff understand operational nuances better than intermediate management or engineering layers, eliminating traditional "lost in translation" disconnects. However, empowering non-engineers makes rigorous centralized governance ten times more essential to ensure security and quality across the enterprise.
- **Jevons' Paradox in AI:** Dramatically cheaper computational intelligence will drive exponential growth in software creation rather than reducing overall demand.
- **Bypassing Intermediaries:** Direct app development by frontline staff eliminates multi-layered communication bottlenecks between business analysts and product managers.
- **Centralized Governance:** Empowering business users requires 10x stricter governance models to manage decentralized software creation.
[34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) Productionizing Software vs. Unlocking Business Value
The panel emphasizes that while technical teams must remain vigilant and careful regarding the productionizing and deployment of software, the true value lies within the business implications. Getting code into production safely is a fundamental operational necessity, but the real "gold" and magic happen when that software directly drives business strategy, solves user problems, and creates tangible value for the organization.
- The ultimate measure of success for automated coding tools is not just technical output, but the business value and magic unlocked for the end user.
## Notable quotes
> [05:17](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=317s) Own your intelligence, don't just rent all of it. — Debojyoti Dutta
> [17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) either invest in training or invest in severance. — Sarah Franklin (referenced by Joe Olsen)
> [23:36](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1416s) That's a robot's problem — Seth Siegler
> [23:36](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1416s) how much, how good, and how often — Debojyoti Dutta
## Video description
Seth Siegler - Chief Innovation Officer, eXp Realty
Kenny Vargas - Managing Director, Head of Software and Data Engineering, Piper Sandler
Debojyoti Dutta - Chief AI Officer, Nutanix
Derek Holt - CEO, Digital.ai Software, Inc.
Joe Olsen - Managing Partner, Olsen Capital
The rapid rise of coding automation is forcing business and technology leaders to reimagine their software strategies. In this panel, senior executives from top enterprises will share how they are navigating this shift—adopting AI tools, rethinking team roles, and redesigning development workflows. Learn how they’re prioritizing investments, measuring outcomes, and preparing their organizations for the next generation of software development. Whether you're piloting AI copilots or scaling automated delivery, this panel will offer strategic insights on how to lead through change and build a more agile, efficient engineering organization.
Industry technology executives report that coding automation is shifting software development from manual syntax writing to domain-driven, agentic workflows, though realizing business value requires restructuring teams, managing token costs, and enforcing strict governance.
Domain Experts Replacing Classical Engineering Bottlenecks (1:40)
Accessible AI tools are enabling non-technical staff and domain specialists to build applications directly, bypassing traditional intermediate layers of product managers and business analysts. Seth Siegler notes that eXp Realty partnered with Lovable to launch a citizen developer program, allowing frontline domain experts to create custom internal tools that eliminated several million dollars in annual SaaS expenditures. At Piper Sandler, Kenny Vargas explains that investment banking analysts use design platforms like Gamma and Canva to compress Confidential Information Presentation deck creation from weeks down to minutes.
Because coding costs have decreased sharply, organizations are shifting toward embedded pods where engineers and business practitioners collaborate directly. At Piper Sandler, cross-functional pods use tools like Claude or Codeium to prototype live dashboard variations for real-time client feedback. Siegler similarly observes that eXp Realty retooled its international division and its historic SUCCESS magazine brand by pairing subject matter experts directly with forward-deployed engineers, emphasizing that domain context has become more decisive than classical engineering backgrounds.
Shrinking Teams and Change Management Friction (10:00)
Adopting AI in production exposes organizational bottlenecks rather than model limitations. Derek Holt of Digital.ai notes that developers spend roughly 90% of their time on governance, compliance, security, and decision-making rather than writing code. Paralleling the shift from legacy data centers to cloud microservices, Holt argues that AI requires companies to restructure around smaller 'one-pizza teams' of three to four people. To prevent transformation failures, Digital.ai deploys a three-part team model comprising a forward-deployed AI engineer, a domain subject matter expert, and a change management specialist.
Debojyoti Dutta of Nutanix outlines a talent model that couples internal upskilling with hiring new college graduates trained in AI-native paradigms, predicting a fundamentally altered talent pool within two years. Panelists warn that unmanaged organizational resistance remains a primary obstacle, citing Sarah Franklin's recommendation that enterprise leaders must either invest in training or prepare for severance.
Economic Realities, Model Routing, and Measurement (23:36)
Unmonitored agent usage can cause severe cost inflation without proportional output gains. Siegler highlights that eXp Realty experienced severe bill shock after deploying Claude Code across its engineering team because developers repeatedly rewrote code rather than delegating tasks effectively. Traditional productivity metrics like line count are obsolete; executives are shifting toward software delivery metrics such as pull requests, resolved stories, and Nutanix's baseline factory measures: throughput, quality, and frequency.
To balance operational expenses against proprietary IP protection, technical leaders advocate hybrid model routing. Dutta recommends that enterprises 'own your intelligence' by running roughly 80% of workload tokens on local or self-hosted models, reserving expensive third-party frontier models for only 10% to 20% of tokens. Nutanix implements this through an enterprise gateway governing access across both frontier models and Model Context Protocol servers.
Autonomous Loops and Agent Ops Governance (28:10)
Automated coding workflows are advancing toward autonomous maintenance. Siegler forecasts that fully automated bug-fixing loops—where routines trigger Claude Code to triage incoming tickets, write fixes, and submit pull requests for human review—will become standard practice within six months. Vargas corroborates this trajectory, noting that agent capabilities are compounding quickly toward concurrent multi-workflow execution.
However, the proliferation of decentralized application development introduces major governance and security risks. Holt notes that approximately one billion knowledge workers will gain access to automated logic tools compared to 50 million professional developers, necessitating an 'Agent Ops' framework equivalent to DevOps. Furthermore, Holt points out that non-security staff can use tools like Digital.ai's Quick Protect Agent to harden mobile and web endpoints to 90–95% of senior security expert performance, addressing vulnerabilities exposed to offensive AI.
Looking out 18 months, panelists predict Jevons' paradox will take hold: dramatically cheaper computational intelligence will increase total software demand rather than decrease it. However, unlocking tangible business value depends on whether enterprises can implement centralized governance strong enough to safeguard security and maintain quality across rapidly multiplying autonomous applications.
## Background
本视频由 Ai4 于 2026 年 8 月 21 日在 YouTube 平台发布。视频记录了一场由 Olsen Capital 管理合伙人 Joe Olsen 主持的高管研讨会,邀请了来自 eXp Realty、Piper Sandler、Nutanix 和 Digital.ai 的多位企业高管,共同探讨编码自动化浪潮下企业如何重塑软件战略、调整团队角色与交付流程。
## TL;DR
研讨会围绕企业如何应对编码自动化与 AI 技术的崛起展开。与会高管分享了在私有云与多云环境下部署 AI Agent 的实践,以及如何利用 AI 原生工具提升企业内部生产力。针对人才与团队重塑,专家们提出了“技能重塑(Reskilling)”与精准招聘的双轨策略,旨在打造具备高阶思维能力、能独立承担更多职责的“单披萨团队”。最后,与会者强调虽然软件部署与运维的生产化至关重要,但对业务问题的深刻理解与解决始终是创造核心价值的关键。
## Atmosphere & style
整场研讨会节奏明快、高效紧凑,高管们在有限的时间内抛出大量干货与行业洞察。对话风格专业且务实,主持人的有效引导与嘉宾们的经验分享形成了良好的互动,展现出面对技术变革时既审慎又前瞻的领导者视角。
## Key takeaways
- [00:04](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=4s) Nutanix 的 AI 策略包含对外构建能够运行 AI Agent 的多云平台,以及对内利用该平台全面提升员工生产力。
- [00:04](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=4s) Digital.ai 专注于代码生成的前后流程管理与软件交付过程中的自动化落地。
- [17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) 企业应对代码自动化浪潮的核心策略在于重塑现有员工技能(Reskilling),培养具备综合思维能力与独立高阶职责的“单披萨团队”。
- [17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) 应届毕业生和初级人才正在快速掌握 AI 原生开发模式,企业可以通过精准招聘引入适应新型 AI 工具的新鲜血液。
- [17:22](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=1042s) 高校针对 AI 时代软件工程的课程体系改革尚处于起步阶段,预计将在未来两年内输出更多全新的 AI 原生人才。
- [34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) 在推动软件自动化与生产化(productionizing)的过程中,审慎落地的同时必须将焦点放在理解与解决实际业务问题上。
- [34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) 编码自动化时代真正的核心价值与竞争壁垒在于深入解决业务需求,而非单纯的代码生成。
## Detailed walkthrough
这里是为你整理的视频第 1 部分(00:04 至 17:20)的详细实录与内容梳理:
### [00:04](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=4s) 研讨会开场与嘉宾自我介绍
会议由主持人 Joe Olsen 主持,共有 30 分钟的时间供 4 位行业领袖分享他们在软件开发自动化策略方面的经验。与会嘉宾依次进行了自我介绍:
* **Debojyoti (Debo) Dutta**:Nutanix 首席 AI 官(Chief AI Officer)。他负责多项业务:一方面主导构建 Nutanix 的多云平台,以高效运行 AI 智能体(AI agents),并确保其在私有云和公有云等各种环境下的一致性;另一方面,利用该平台推动内部员工生产力的提升。
* **Derek Holt**:Digital.ai 的 CEO。Digital.ai 专注于在代码生成上下游### 研讨会开场与嘉宾介绍
研讨会主持人 Joe Olsen(Olsen Capital 管理合伙人)拉开序幕,指出本次研讨会时间紧凑,仅有 30 分钟,却聚集了四位重量级嘉宾。为了让每位嘉宾能够分享尽可能多的干货,他引导大家快速进行自我介绍。
首先发言的是 Nutanix 的首席 AI 官(Chief AI Officer)Debojyoti Dutta(简称 Debo)。他表示自己的职责涵盖多个维度:一方面,团队致力于打造 Nutanix 的下一代多云平台,以极高的性能运行 AI Agent,并保证其在私有云、公有云等各种环境下的一致性;另一方面,他们也在企业内部使用同一套平台,全面推动员工生产力的提升。
接着是 Digital.ai 的 CEO Derek Holt。他介绍
### [017:22] 重塑人才与团队:重塑技能、精准招聘与“三足鼎立”转型模式
在探讨如何应对代码自动化浪潮时,针对“如何重塑团队与技能”这一核心问题,Debojyoti Dutta (Nutanix) 提出了两手抓的双轨策略:一方面通过重塑现有员工技能(Reskilling),让他们掌握 AI 原生工具,从而打造具备更高阶思维能力、能独立承担更多职责的“单披萨团队”(One-pizza team);另一方面,进行精准的高质量招聘。Dutta 特别提到,如今的应届毕业生在大学阶段就已经开始学习并掌握这些 AI 构建软件的新模式,这与两年前大不相同,这让企业能从应届生和初级人才中挖掘出非常优秀的人选。他透露,自己与多所大学教授交流时发现,高校### AI时代的企业人才重塑与“三足鼎立”转型团队
Debojyoti Dutta(Nutanix)指出,公司正在采取“双管齐下”的策略来推进自动化:一方面对现有员工进行技能重塑(Reskilling),提升其综合思考能力以打造能够承担更多高阶职责的“单披靡团队”(One-Pizza Team);另一方面进行精准招聘。有趣的是,两年前的新毕业生可能还不懂这些 AI 工具,但如今的应届生在校期间就已经掌握了 AI 原生开发方式。然而,与高校教授交流会发现,大学课程体系的改革才刚刚起步,预计两年后市场上才会涌现出全新的 AI
由于本次提交的转录文本片段极短(仅包含视频尾声的最后两句总结与对提问者的致谢),面板讨论的主体内容已在前两部分结束。
### [34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) 生产化与业务价值的平衡
在研讨会的尾声,发言者对软件工程的未来走向作出了总结性的升华。发言者强调,虽然团队必须对软件的“生产化”(productionizing,即部署、运维与上线落地)保持高度审慎与关切,但整个过程中最核心、最具有“金子般价值”的部分,始终在于对业务问题的理解与解决。这才是编码自动化时代里真正带来奇迹与竞争壁垒的“魔力”所在。发言者随后向提问者表达了诚挚的感谢,为整场关于编码自动化与软件策略重塑的讨论画上了句号。
## Notable quotes
> [34:57](https://www.youtube.com/watch?v=7d0z8wWH_hg&t=2097s) 整个过程中最核心、最具有“金子般价值”的部分,始终在于对业务问题的理解与解决。这才是编码自动化时代里真正带来奇迹与竞争壁垒的“魔力”所在。 — 发言者
## Mentioned
Seth Siegler, Kenny Vargas, Debojyoti (Debo) Dutta, Derek Holt, Joe Olsen, eXp Realty, Piper Sandler, Nutanix, Digital.ai, Olsen Capital, Ai4
## Video description
Seth Siegler - Chief Innovation Officer, eXp Realty
Kenny Vargas - Managing Director, Head of Software and Data Engineering, Piper Sandler
Debojyoti Dutta - Chief AI Officer, Nutanix
Derek Holt - CEO, Digital.ai Software, Inc.
Joe Olsen - Managing Partner, Olsen Capital
The rapid rise of coding automation is forcing business and technology leaders to reimagine their software strategies. In this panel, senior executives from top enterprises will share how they are navigating this shift—adopting AI tools, rethinking team roles, and redesigning development workflows. Learn how they’re prioritizing investments, measuring outcomes, and preparing their organizations for the next generation of software development. Whether you're piloting AI copilots or scaling automated delivery, this panel will offer strategic insights on how to lead through change and build a more agile, efficient engineering organization.
[Source](https://www.youtube.com/watch?v=7d0z8wWH_hg)
[5:17] Debojyoti Dutta: Own your intelligence, don't just rent all of it.
[17:22] Sarah Franklin (referenced by Joe Olsen): either invest in training or invest in severance.
[23:36] Seth Siegler: That's a robot's problem
[23:36] Debojyoti Dutta: how much, how good, and how often
Original transcript
[0:04] Well, thank you guys for for joining us this
afternoon. We've we've got 30 minutes and
[0:08] uh and four people. So, I'm going to try to uh
keep this moving so that these folks can share as
[0:14] much knowledge as possible with you guys. Um why
don't we start with quick intros? Uh do maybe you
[0:19] want to start and we'll just run down the line.
So, hi, I'm Debo Duta, chief officer at Nutanix,
[0:24] which means I do multiple things. One of them
is we build the cloud platform next multi cloud
[0:29] platform to run AI agents very well and this
can it's a and it runs consistently across all
[0:36] um you know private cloud public cloud elsewhere
and all the on the other side I you we use the
[0:43] same platform to drive down productivity increases
for our employees right uh Derrick Holtz CEO
[0:50] of digital.ai uh digital.ai AI focuses on uh
bringing AI solutions upstream and downstream
[0:56] from coding agents to unlock the true value
of accelerated delivery particular in the in
[1:02] the enterprise working with a little over half
of the Fortune 100 to help them take advantage
[1:06] of this new opportunity. Uh Kitty Vargas, I'm
a managing director at Piper Sandler. My role
[1:13] entails deploying AI, data, any type of solution
across our investment banking sectors. and uh
[1:20] Seth Seagler from a company called EXP Realy, the
largest single real estate brokerage in the world
[1:26] uh with more than 80,000 real estate agents in 29
countries. Um yeah, and my role is uh is focused
[1:33] on our our AI transformation um finding ways any
way possible for it to help us. Yeah. Awesome.
[1:40] Thanks, guys. So, uh, we're here to talk about
automation as it relates to software development
[1:46] strategy or, um, and so maybe Seth, why don't we
start with you and we'll work our back or work our
[1:51] way back the other way. Maybe walk through one
specific AI assisted coding initiative that you
[1:56] guys have deployed or actively building. Um,
and maybe start with the business problem you
[2:01] guys were solving and what the measurable
impact was on the end. Yeah, I think um,
[2:06] I think our most interesting one is uh, what we
call our citizen developer program. Um, so what
[2:11] we did was partner uh with a company called
Lovable uh a couple year and a half ago now.
[2:17] Tiny little company. Yeah, tin. Well, they were
tiny when we getting any press at all. So, yeah,
[2:22] we're our first enterprise customer. Um, but uh
but we extended access to that that platform. It's
[2:29] a you know what's known as a vibe coding platform.
We extended access to that to our non-technical
[2:34] staff, anybody that wanted um to get in on it. And
um and it was sort of a continuation of what we
[2:40] were doing with OpenAI and uh enterprise chat GBT
and custom GBTs where we incentivized people to
[2:47] um nontechnical staff to leverage their subject
matter expertise to build solutions for just
[2:54] exactly what they were doing dayto-day or what
their team does day-to-day. So what we saw was
[3:01] um an explosion of solutions built that solved
really focused problems that our upper management
[3:11] uh seuite anybody in leadership wouldn't even have
known about in many cases but was an actual pain
[3:17] point for the team and the people doing the
work in the trenches. Um not only that we saw
[3:22] uh a replacement of a huge number of uh of
SAS solutions. So, we ended up being able
[3:28] to sunset several million dollars in SAS spend
in favor of uh of in-housebuilt non-technical
[3:37] staff subject matter expertise leveraged
decentralized innovation uh is what we saw. So,
[3:42] we built a whole process around that to actually
productionize uh ensure safety, security, privacy,
[3:50] everything else. Um and it's been a huge success.
Cool. Okay. So my example is similar but not quite
[3:58] the same. Right? So if you look at the life of a
banker, their life is spent in PowerPoint, Excel,
[4:05] Outlook, right? So a lot of it is there's a
lot of churn in their process or day-to-day
[4:10] workflows. So one of the items that we built to
unblock bankers because if you think of a it's
[4:16] called a confidential information presentation. So
it's a deck that's like 80 to 100 slides. You know
[4:20] bankers spent significant amount of time putting
them together and where AI is today if you look at
[4:27] cloud design as a good example it's a beautiful or
an amazing tool to build slides or to build decks
[4:32] right so it takes away the process of identifying
which images or which icons or what's the flow of
[4:39] my presentation and as a banker you can focus more
on the storytelling positioning compon you know
[4:45] component of it which eventually compresses
cycles so for us it's been transformational
[4:50] We piloted Gamma, Canva, everything that's in the
marketplace to identify what was the best tool,
[4:55] right? Because it allowed allowed us to take weeks
from, you know, the analysts and associate classes
[5:01] that would spend, you know, putting together these
decks, going back to their MDs to ultimately just
[5:06] hitting a button, getting like four or five
different versions of the deck, and then saying
[5:11] this is the go forward and ultimately mechanize
the whole process. That's great. So one uh example
[5:17] that I'll give so as I mentioned we uh help build
tools and agents sort of upstream from coding and
[5:21] downstream from from coding uh in in the delivery
space. And the main reason for that is in most
[5:26] enterprises about 90% of the time is actually
spent not coding. It's around decision-m and then
[5:31] all the governance and compliance and security
and and quality work that needs to be done. And
[5:35] so in some ways writing more code was not ever
their bottleneck. A little different story for a
[5:40] startup but but but that that is uh certainly the
case. And so um one that I'll focus on and this
[5:45] is timely given the the news over the last few
weeks. Um if you look at mobile apps and websites
[5:50] the overwhelming majority are not protected.
Those endpoints are not protected. Sure the the
[5:55] uh infrastructure side is for the most part
protected. But if you go out to the app store and
[5:59] download an app, most of those are not protected.
And thus they are a new attack vector. And if we
[6:03] were any everybody's reading the news, uh there is
a massive increase in in in obviously offensive AI
[6:10] um attacking applications. So, one of the big
bottlenecks, we have a product that allows you
[6:14] to harden mobile apps and websites, right? Uh, one
of the bottlenecks has been that there's not as
[6:19] many skills as you think there there needs to be
in order to protect every app that is out there.
[6:24] And it's required a level of sophistication um and
training to be able to use the tools, ours, ours
[6:29] included historically. And so, what we introduced
was what we call the quick protect agent.
[6:34] This allows anybody, even if you're not a security
expert, to take your app, run it through an agent,
[6:39] and we will protect it nearly to about 90 to 95%
of what we see most security professionals able
[6:44] to do. And we'll continue to raise that raise
that bar. So, I think it's a good example of
[6:48] like not necessarily replacing a job, but in fact
doing work that wasn't able to be done because of
[6:53] of lack of security expertise, right? Yep. Yep.
Yeah. So um I think uh last year or um I last
[7:02] two years we were in AI assist mode. So we across
the company we've helped build and also use agents
[7:10] to help a particular persona do their job better
whether it's customer support agent whether it's
[7:16] software engineers we're a technology company and
we saw the huge wave in since cloud code basically
[7:22] uh about last year where things were becoming
quite autonomous and of course with open cloud
[7:28] it's gone crazy so what we've we are now in
the middle of that journey from to go from AI
[7:34] ist to like agentic with a little with human
intervention. So in in order to do that so
[7:41] what we've done is of course we we've looked at
every I'll just talk about our engineering for
[7:46] now because the topic is coding automation. So
again we saw that uh to the point uh that coding
[7:53] is not the most important I mean it's not the most
uh intense uh part of the journey it's like 7030
[7:59] or something right so we are looking at every uh
part of the software development life cycle and
[8:05] we're trying to see how we can make it agentic so
that's point one point two um now when we look at
[8:12] uh coding tools I mean everybody has a choice on
you know which coding tool they like developers
[8:18] you know it's back in my school days like it was
Vim or Emac. So it's still the same and it's not
[8:23] going to change. What we realized is that we need
to make sure this agentic SDLC or whatever we want
[8:29] to call it eventually will need to be guardrail
governed and co and costgoverned actually. So in
[8:37] order to do that so we all built an in just to
help ourselves we built our nutanics enterprise
[8:43] AI part of our nutanics agent uh AI solution which
actually does again two things one is it helps you
[8:50] run local models locally so you can run LLMs near
frontier LLMs locally the second thing is it helps
[8:57] you we have a gateway which helps you protect both
model access and MCP server access so that you
[9:04] can actually run a coding agent without having
to worry about bringing the house down. Uh and
[9:12] with this uh internal innovation so basically
drinking the champagne while bottling it,
[9:17] we can I feel we are very confident we are making
strong progress in our agentic AI journey rather
[9:23] AI assist is done. It's already a done deal. We
we've gotten the similar kinds of benefits that
[9:29] all of us are talking about. And so my strategy
is is that you know own your own intelligence.
[9:35] Don't just rent it. Don't rent all of it. And
think about a two-tier intelligence where you
[9:40] have to use your foundation models for about 20%
10 20 dependence on your use case and there's no
[9:47] way around it but 80% of your tokens should
come from something that you own and perhaps
[9:53] not per token not price per token. Well, uh, you
know, I think when we think about, uh, Agentic,
[10:00] uh, or AI supported coding or automation, I
think one of the things we think about is you,
[10:05] it's a lot of trial and error. Um, and so maybe
Derek, you can start with you, but where where
[10:10] have you seen, you know, an instance where you've
pushed something down the line and decided, hey,
[10:16] we're running into roadblocks. This isn't working.
We need to go backwards. um and how do you handle
[10:21] um those initiatives when you have to decide you
know what to kill, what to roll back etc. I mean
[10:26] I think in in the context of the enterprise um uh
you find that very quickly the moment you go from
[10:31] pilot to like trying to do something in production
right because there are so many requirements from
[10:36] a regulatory perspective from a compliance
perspective um etc. I think one of the things
[10:40] that's probably and I'm as guilty as this as
anybody is we like to talk about what's the next
[10:44] version of the model and how much better that next
version of the model but I've been through enough
[10:48] of these big transformations to kind of always
fall back to the fact that the people and process
[10:53] part is often overlooked and so one of the things
that I think is really compelling and there's
[10:57] been some really good discussions here which is
what is the optimal team size for a development
[11:01] team in the AI age right I think most are saying
much much smaller than what we're we're used to
[11:06] uh number two is what are the right processes
and I think that's the number one thing that
[11:10] I think is holding a lot of organizations
back. Um there's a lot of differences here,
[11:13] but like I remember the early days of cloud and
the first move was like take what we used to do in
[11:18] our data center and move it to the cloud. And that
failed really badly, right? The bills came in,
[11:22] they were really high and we all looked at each
other like why did we do this? And it wasn't
[11:26] until we changed the architecture. We we changed
uh more kind of microservices and the way that we
[11:31] would deliver things that we started to see the
benefit. I think we're right at that injunction
[11:34] point with with with uh AIdriven coding. We need
to rethink how the teams are organized. We need to
[11:40] rethink the processes and that includes when
we test, how we test, when we secure, how we
[11:45] secure and what does governance look in a world
where uh it's a combination of humans and agents,
[11:50] right? Um, and so it's probably not a direct
answer, but I I really do think this next wave
[11:56] will be maybe a little bit less about uh the the
models getting incrementally better and a little
[12:00] bit more about how do we do this at scale uh in in
the realities of of banks and insurance companies
[12:05] and governments and and others. Yeah. You know,
real quick, you you hit on uh I've heard uh
[12:10] Bezos's two pizza team come up quite a bit during
this event. Um which I think is just interesting
[12:15] is we're going back. We're in like a three to four
person team right now. One pizza team. Yeah. to be
[12:20] team. Yeah, it's a one piece of team to uh and we
have some that are still legacy, but but but um I
[12:25] think it's a lot of experimentation right now. And
the good news is we can do quick iterations and
[12:28] determine what works and what doesn't work. And
microservices, it's funny that you bring that up.
[12:31] You know, you hear this word agent thrown around
and you'll see it all over the expo hall, too. But
[12:35] as an engineer, you look at it and you're like,
it's just it's microservices calling code calling
[12:38] code, which is just a funny thing to think about.
But Seth, what what do you think? When have you
[12:42] had to roll something back or um we had to pump
the brakes a little bit uh on that same program?
[12:47] Um once we started seeing just like an explosion
of of pieces of software of web applications
[12:52] getting launched um and then by the way it grew
past that too grew we uh started working with a
[12:58] company called SIM AI uh we're using it for all
different things and you know building workflows
[13:02] and and different uh even smaller orchestrated
aentic systems. All of that stuff had to flow into
[13:09] our review process um to ensure we're a publicly
traded company. uh we have quite a bit to ensure
[13:16] uh is is good to go before it goes into production
and our review process became the bottleneck. So
[13:22] uh we started seeing at one point we had like
a hundred submissions just waiting for me to go
[13:26] through and do a code review and uh our security
people our privacy people everything else to kind
[13:32] of like jump in there and review it. So we had
to go about audit, you know, automating that with
[13:37] um with cloud routine, cloud code routines and
yet another sim uh automation um for auto um
[13:44] initial code reviews to bounce back just real the
the sort of the lowerhanging fruit right off the
[13:49] bat to the builder um and just saved us a ton of
time. And then but as we've done that right as the
[13:55] velocity is otherworldly now for creating code and
creating software it just moves like we never had
[14:02] to we never had a bottleneck with DevOps before.
We never had a bottleneck with like security being
[14:07] able to take a look at a piece of software but
we have that and we had to kind of keep coming up
[14:12] with new solutions in this totally new paradigm.
But uh yeah, a few times we had to you know to
[14:17] pause things you know communicate new ways of uh
of you know of what to expect in the review portal
[14:23] and and things like that and even think about yeah
the who is creating software now like you said is
[14:31] very very different you know what does that team
look like the roles you know are collapsing some
[14:37] new roles are being created right um and maybe it
makes sense to yeah I'll invest a little bit more
[14:42] now in infrastructure you know few people all
kinds of different things like that. It's a new
[14:46] way of thinking about it though and we've run into
a ton of pitfalls and totally uncharted territory
[14:51] but yeah um each time we apply AI to fix it to
be honest. Kenny in your business there's got
[14:57] to just be a ton of regulation wrapped around this
stuff. So I would imagine you're constantly trying
[15:01] to figure out frameworks that you can try to do
to scale to solve some of those DevOps problems
[15:05] that Seth talked about. Maybe maybe talk to us a
little bit about your guys' process. That's a good
[15:11] one. I wasn't ready for that question, but I'll do
my best to answer it. Organic response. Exactly.
[15:17] No. So the the the theme here is is speed or time
to market, right? So all that has compressed. So
[15:23] in a regulated industry, you have all these gates
and all these mechanisms and audits and controls,
[15:28] right? That ensure that software is deployed
especially if it's client-f facing in a secure and
[15:33] governed way. Right? when you have AI and to your
point you have people in the business that are bip
[15:38] coding apps you know people producing artifacts
distributing to clients that whole paradigm shifts
[15:43] completely right so ultimately what we had to
build and I I have to smile or laugh a little bit
[15:48] because it was an interesting approach was to use
AI to basically aggregate all the telemetry from
[15:54] all of our systems everything that's available
firmwide to have a clear view not only as to what
[16:00] people are doing on their workstations doing with
our market data with their emails etc. but also
[16:06] how models are being utilized, right? Because
you have the notion of people believing that
[16:11] an Opus 5 can do everything or why can't I use
Fable, right? And at the end of the day, it comes
[16:16] down to right model, context, skills, you know,
utilizing the constructs that are present for you
[16:21] to be effective at your job. But to your point, we
can't give everything to everybody because skills
[16:26] is a is a good pattern, right? If you think about
making AI work for you, but then you start into
[16:32] people wanting to share them, right? and people
having 30 skills, you know, and that explosion of
[16:38] 30 times 5,000 bankers, you know, what does that
mean? So, there's some interesting problems. Yeah.
[16:43] Um I think Demo maybe maybe just to shift out of
that for a second and talk about talent because
[16:48] I think that's um one of the most interesting
trends over the last 12 months even has been,
[16:53] you know, two and a half years ago, people were
afraid AI was going to take all of their jobs.
[16:56] And now I think we're realizing that human beings
are quite important in the process and most of the
[17:02] enterprises I talk to spend more money on the
business problem and trying to figure out the
[17:07] cultural adoption all these other things than they
actually do writing code and all those things. So
[17:10] I'm curious um in in in you know at Nanix are you
guys are you guys hiring less people? Do you share
[17:18] the same view? How do you look at kind of the
human process laid out over the top of of software
[17:22] automation? Yeah. So that's a great question and
we've um I mean there's no right answer but I can
[17:27] I'll tell you we have a two-prong strategy. One is
we upscale our people. We give them the AI tools
[17:33] uh to basically be AI native in order to be a one
pizza team because we were just talking about one
[17:40] pizza teams. Each team member needs to do um
more higher level thinking. So that can be done
[17:47] through resklling. And what we've noticed is that
our new college grads, they are kind of learning
[17:52] this in school right now. So there was maybe
two years ago it was not the case. But I think
[17:57] uh so we've had amazing uh luck finding really
good talent from new college grads and junior
[18:06] candidates who actually know this how to do this.
So we are doing a mix of both reskilling and smart
[18:13] hiring and actually I'm hiring. Yeah. I mean the
hard part is to find uh people who understand this
[18:20] new way of building software and when I talk to
uh professors in different universities I mean
[18:26] everybody's trying to retrain to change the
curriculum and train people how they actually
[18:31] do this but so I think in about a couple of
years you'll see a very new talent pool than
[18:36] you see today. I thought uh Sarah Franklin,
you know, who's a former CMO of Salesforce,
[18:40] uh likes to post uh little kind of one or two
liners on LinkedIn and she had one about a month
[18:45] ago that was to enterprise executives that said
either invest in training or invest in severance
[18:50] and I thought that that was a really interesting
sort of HR perspective, but um Derrick,
[18:55] you got anything to add or I mean we're hiring as
well. I mean it's evolving, but the reality is it
[19:00] was evolving before AI as well. I mean this is
not the first time we've evolved as an industry.
[19:04] Um I think the other thing that maybe I would just
throw out is hopefully this is like interesting is
[19:09] um we like every other company yes we build
software to help people use AI to build
[19:13] software but we also run a company and so we
have been making the same transformation a lot
[19:17] of companies have had around how we do billing
how we do collections how we do marketing right
[19:22] a lot of the kind of inside elements and one
of the things we found that has worked is we've
[19:27] actually formed kind of a three-legged stool team
anytime we're driving an AI transformation so one
[19:31] is we have internal forward deploy engineers
that are bringing the the the AI expertise,
[19:37] right? Instead of blindly training everybody.
Of course, we've done that for like the basics,
[19:42] but bring a forward deploy engineer, bring a
subject matter expert. So, somebody who knows
[19:47] billing inside and out, but maybe not as as as
expert at AI. And then the one thing I think
[19:52] folks miss is bring a a person who's an expert at
change management because like that element which
[19:57] is very not technical is the thing that will bury
these things is you've got to have somebody that
[20:02] understands how to get the organization from
A to B not just one or two people but like the
[20:06] organization and we have found that those kind of
three-legged stool teams have driven a lot more
[20:12] result for us versus hey we tried something and
then we reverted back to the old way of doing it.
[20:16] They are in it through the entire transformation.
Yeah. Seth Seth, when you're rolling out some of
[20:22] the solutions that you're doing, are you are you
finding the same thing that there's, you know,
[20:25] more people wrapped around these things than
most people might think? Like more people wrapped
[20:31] around like a more more people wrapped around
solving business problems and things like that,
[20:35] you know, as opposed to writing code. Yeah. Yeah.
I think it it's just it's just interesting that
[20:41] everybody can be involved in solving the problem.
uh yeah you know not I think the most valuable
[20:48] thing is the subject matter expertise you know
like we are seeing um it's the rise of the of the
[20:55] generalist you know it's the rise of the subject
matter expert who's interested in learning about
[21:00] you know how they can leverage AI and in a lot of
cases it is so accessible for them to solve their
[21:06] own problems but um but yeah we've seen like in
our international division um which is everything
[21:11] outside of North America for us um they've
built an entire uh AI first uh fully or you
[21:18] know orchestrated operating system by uh pairing
what is essentially a forward deployed engineer
[21:26] you know with a with subject matter expertise
there um in our success magazine division um we
[21:33] have um an amazing person leading that uh Rachel
she's actually right here and um yeah that's
[21:40] that's now fully uh fully transformed as well from
one of the oldest companies in existence actually
[21:47] uh brandwise um to be you know really AI first now
and and um by subject matter experts people that
[21:54] have trained themselves like like Rachel and even
our founder and CEO Glenn Sanford um and uh and
[22:01] it's just interesting yeah who those people are
yes there's there's a number of different people
[22:06] that need to be involved but who they are and
their background is the most important thing now
[22:12] uh versus, you know, I think I'm preaching to
the choir probably in this room versus like
[22:17] the classical uh engineering training, you know.
Yeah. Um Yeah. Kenny, in your business, again,
[22:22] just because it's so regulated and so interesting
and nuanced, are you uh pulling people in from the
[22:28] business and helping them get closer to this new
type of way of working? Are you going out trying
[22:33] to bring them in and teach them the business?
Like what do you find is the right mix for that?
[22:38] So the right mix today is bringing them to similar
approaches as you know has been described o over
[22:44] and over which is pairing engineers or creating
pods if you will you know that notion of the two
[22:50] pizza team but the business is embedded in it
because the price of building software has gone
[22:54] down significantly right we can quickly iterate
and have three you know claude or codec pick your
[23:01] tool of choice produce three artifacts in real
time and you can tell your client or your banker
[23:06] at that point you know, do you like this dashboard
better? Is this one hitting the mark? Which one
[23:12] do you want? Right? And kind of ideulate at that
point in time and ultimately build a solution. So
[23:17] that has been very valuable rather than us going
away building something that we think it's going
[23:22] to be useful to them and they ultimately say, you
know what, I don't like it. And bankers are very
[23:26] fickle, too. So if you put something in front of
them that doesn't hit the mark, you're never going
[23:30] to hear from them. So yeah. So maybe I'll combine
a couple questions just to hit a couple hot topics
[23:36] when it comes to automation um and AI written
code and things like that. So obviously there's
[23:40] a lot of talk about um tokens and the expense of
tokens and you know some of the conferences I've
[23:46] been to recently there's even discussion about
where the cost of that sits. Do we put it into
[23:50] employees costs and things of that nature? Um, and
then on the other side you have like kind of the
[23:54] ROI of of of of of automated software, you know,
and in the old days you you measured code output
[24:00] and obviously now you're not you're not doing
that and in some instances it's like it's like
[24:04] uh conflicting with spending tokens, right? So h
how do you uh how do you kind of manage that topic
[24:10] internally when it when it relates to metrics and
software automation and how you talk about it to
[24:15] the business ROI really? Yeah. Yeah. So uh it's a
hot topic that's for sure. Yeah. Uh so we just uh
[24:22] we just deployed uh cloud code a little bit more
widely into our our main traditional engineering
[24:27] org actually and because we had seen so much
success with it in our you know non-technical
[24:34] uh users and and sort of uh smaller targeted teams
of technical users uh were like let's give it to
[24:40] everybody and then um immediately saw the first
month's bill and we're like we need to uh we need
[24:45] to work with them to to use it properly uh because
yeah we weren't seeing a huge amount of output
[24:51] um increased um but we were seeing a huge amount
of spend so that we just tacked on expense for
[24:56] ourselves. But yeah uh it is about uh it is about
you know seeing uh you know 5xing 10xing their
[25:04] actual output of like you know tickets and and
pull requests and stories and stuff like that. So
[25:10] um that's what we're looking at yet certainly not
the amount of code because I don't care about that
[25:15] at all anymore. That's a robot's problem. But um
you know um yeah it's it does take a bit of of
[25:21] training on how to use it properly. And with
traditional engineers I think the big thing
[25:25] is like letting it do the work. Let it write the
code for you. Don't write the code and then use it
[25:30] again. Right. And then we're just not getting any
velocity but we are gaining the cost. Yeah. I I I
[25:36] would say the reason this is such a hard question
to ask to answer is um even before AI most large
[25:43] scale organizations could not measure the business
process of building and delivering software right
[25:48] we've seen waves of this through the history of
the industry maybe most recently with software
[25:52] engineering intelligence was this going to be
a platform layer we have some products in that
[25:56] space and I will tell you um prior to AI it felt
like it was a nice to have now that AI has started
[26:02] to proliferate and CFOs are knocking on doors and
asking hey what are we getting for uh it's one of
[26:07] our fastest growing areas, right, that people
are paying attention to. Um it's um you know
[26:11] the thing about software has always been a little
bit of an art and a little bit of a science and I
[26:15] think engineers and I'm an engineer by the way
so I'm not pointing fingers. Um uh I would say
[26:19] the same thing like hey you can't measure this is
like you could measure a supply chain or you could
[26:23] measure a a um a finance organization but the
reality is we got to figure that that out and and
[26:29] uh start one number one is the benchmark today
right because I think sometimes we're not even
[26:33] having a reasonable comparison about what it was
before um and then number two is um I think to the
[26:39] to the earlier comments like it is very clear
that we are using a Ferrari in many many cases
[26:43] like when a bicycle would be just fine and um
uh this idea of model routing and being smarter
[26:49] about what you keep on uh on prem versus what
you're using Frontier Labs for um uh both in the
[26:55] you know hot topic of preserving your alpha but
also in the topic of preserving your bottom line
[27:00] um I think is going to be really critical in this
next chapter. It's still very very early and these
[27:04] things tend to sort themselves out and the CFOs
are really good at helping you sort them out. It's
[27:09] a good one. So um I'll actually chime in a little
more. So if you really think about metrics right
[27:16] he said very hard to define but I think we should
not I mean I we don't promote token maxing so we
[27:23] obviously started off with measuring how well
the AI adoption is going so we had to see how
[27:28] much code was being generated but that's it our
metrics for software delivery haven't changed and
[27:34] in general uh if you think about for any industry
not just software engineering if you think of
[27:40] any industry as a factory So you there are three
metrics that I I personally care about. How much,
[27:48] how good, and how often. And that and
whether you apply to iPhones or software,
[27:54] it really doesn't matter. And AI is a tool to get
to the how much and how often and how good. I like
[28:01] that. Yeah. Um I guess uh we've got a few more
minutes here. I guess maybe maybe let's try to
[28:10] close this out looking at um you know getting past
kind of agents well maybe agents would be a part
[28:16] of this but getting past co-pilots and things like
that if we're here in the same stage next year
[28:20] uh having a similar conversation about software
automation and AI and those things what are we
[28:26] talking about in your guys's point of view I think
um I think something that you know that and just
[28:32] to use Derek real quick sorry what should CFOs be
afraid that they're going to have to pay for that
[28:37] No, go ahead. Tiny joke. It's a whole separate
thing. Yeah. The uh No, but something we're
[28:44] seeing I I think a lot of success in it is like
real automation of the um AI generated, you know,
[28:52] coding, you know, loops. I think um that's a big
thing that we're just dipping our toes into where
[28:59] uh for every uh let's say bug story that gets
created um you know for a given piece of software
[29:07] it kicks off a loop now uh that can pull in a um
a cloud code uh routine to to triage it and and a
[29:16] lot of times um it's very straightforward
where the bug story was written properly
[29:23] um it's triaged and solution is pretty clear and
in those cases we are experimenting with having
[29:29] cloud code just fix it and open a PR. Um that
way it's it doesn't take anybody's time except
[29:36] to look at the the PR um and then give that a
go. So uh that's just like really uh I I you
[29:42] know maybe people are further along in that than
I than I think but we're just dipping our toes
[29:46] into it. I think that will be uh table stakes uh
within six months for everybody. Uh but um but I
[29:54] think that that's kind of an interesting thing.
Uh for a year from now, I cannot even imagine
[29:59] uh to be honest. What do you think, Kenny? No, I
agree. I think um the progression of of agents,
[30:06] if you will, has been parabolic, right? So
what we're doing today, which is, you know,
[30:10] feeding context and babying agents, I don't think
that's going to exist in a couple of months,
[30:16] if not a year. Yeah. You're going to have your
engineers basically running multiple workflows
[30:21] at the same time. and outcomes are going to be
significant. So, I agree with both of those.
[30:26] The the um maybe a little bit of a outside of the
business process of building delivering software.
[30:32] One of the things we're thinking a lot about is
there's about 50 million professional developers
[30:35] in the world give or take. Um there's about a
billion people that are in white collar jobs
[30:40] and knowledge working jobs. Um we are in the midst
right now of uh even beyond writing code just the
[30:46] ability to take business processes and create
an agent around it. And in most organizations,
[30:52] they are reasonably governing the business process
delivering software. Um early days, they are not
[30:57] governing agents, particularly agents that get
deployed internally, right? Um so you've got
[31:02] 50 agents that do the exact same thing but in a
different way. You have no real way of determining
[31:06] whether or not it's been tested. If you find a
defect in an internal agent, like who picks up
[31:10] the ticket? It's a bit of a free-for-all in a
lot of organizations. I think a year from now,
[31:15] agent ops as an answer to what DevOps did for,
you know, traditional software development and
[31:21] delivery. Agent ops is going to be the next big
um I think the big topic. It's already happening,
[31:26] but um we're about ready to give, you know, a
billion people the ability to create automated
[31:31] business logic. Yep. That's exciting and scary
all at the exact same time. Yeah. I always uh my
[31:37] said on uh a panel a couple days ago like if you
could look into lovable database even and look
[31:41] at how many websites are doing the exact same
thing it's probably 75% of those are overlapped
[31:46] so it's yeah same thing yeah interesting yeah so
I mean I will just kind of summarize everybody
[31:52] and say that there are three dimensions 18
months from now right the people side we've
[31:56] already talked about one pizza teams um people
getting much more qualified um either through
[32:03] retraining or res-killing in the universities
ities. So that's going to happen. Processes,
[32:07] we all know that there'll be loops. I'll just
call call it loops because that's the hottest
[32:12] topic today. Yesterday at least it was. Uh so so
loop engineering and all of that processes will
[32:17] get transformed and then tech tech there'll be
Javon's paradox will take over the intelligence
[32:24] will become a couple of orders of magnitude
cheaper. Again not going into details it will get
[32:30] cheaper. So silicon intelligence will be cheap.
Now the thing is we will uh we as humans will
[32:36] still need to have the right governance to make
sure that we can have these AI software factories
[32:43] that everybody's talking about where people write
specs what they get a um as an output is a u I
[32:49] mean is a feature or a product but we have we as
humans we have a much bigger role to play in that
[32:56] future where we manage the entire software factory
from spec to owning the final output. So I think
[33:05] that's my prediction. It's interesting how much
of a lot of the things you guys talked about were
[33:09] kind of on similar wavelengths around just putting
more orchestration around this, more governance,
[33:13] more control and those kind of things. So
I was just uh wondering like you're talking
[33:17] a lot about empowering um the non-technical
people in the business to create applications.
[33:26] Doesn't that does that create a concern for you
about the business process? Like are are they
[33:33] speeding up the wrong things potentially? Uh
no. So it's a good question, but the answer is
[33:40] uh no because they know the business better than
any of the engineering org knows the business,
[33:45] right? They're doing the business. They're the
ones doing, you know, doing the work. And in a
[33:49] lot of cases, it's not even the managers of
the teams that are building the software.
[33:53] It's the people you know the frontline people that
are that are doing it. Um so they know it better
[33:59] than anyone and you know I think uh in traditional
engineering again that yeah I also am an engineer
[34:06] um but you know so I've been guilty of this too
is it gets lost in translation to some extent when
[34:11] that person tells their manager and then that
manager tells a you know business analyst the
[34:15] business analyst works with the product manager
and product manager you know what I mean they made
[34:18] a movie about it office space right that's exactly
right and actually it's a great question which we
[34:23] didn't cover in the panel on the panel that what
what happens how Do you manage the development
[34:29] done by non-engineers? I think again in 18 months
you'll see a lot of non-engineers uh using their
[34:36] own creativity to come up with apps. But the main
thing is what we just discussed that governance
[34:40] is going to be key. You can build your app that
where you are a subject matter expert which was
[34:45] covered right but subject matter experts don't
need to be engineers but the governance need
[34:50] to be actually needs to be rock solid. In fact
10x more important. Yeah. Yeah. Yeah. for sure
[34:57] concerned and careful about the productionizing
of the software, but the business part of it is
[35:03] the is the part that is the gold. That's the
magic of it. That's great question. Thank you.