Skip to main content

Automate the Routine, Elevate the Role: What AI Means for Software Engineering


Much has been said about how GenAI and Low Code platforms are set to replace software engineering as we know it. And while it’s true these technologies can already generate large volumes of code, the reality is far more nuanced.

  • The 80/20 Reality of Code Complexity: Software engineers typically spend 80% of their time on just 20% of the codebase - the most complex, business-specific logic. This "last mile" of coding is highly tailored and nuanced, making it the hardest to automate. While GenAI can generate the more routine 80% of simple code, the actual time saved is modest because that portion represents just a fraction of the engineering effort.

  • Coding Is Just 25% of the Job: Writing code is only a quarter of what developers actually do. The remaining 75% is consumed by meetings, debugging, waiting for requirements, updating tickets, reviewing PRs, handling Slack or Teams messages, explaining tech debt, managing deployments, and context-switching. Even if AI revolutionizes the act of coding, the majority of the engineering workload remains untouched.

  • The Debugging Bottleneck: AI-generated code introduces a new kind of overhead. When things break - as they inevitably do - developers are left to debug unfamiliar code they didn’t write. Prompting improvements quickly hit a wall, and understanding auto-generated logic can be time-consuming. Ironically, this can offset the initial time saved by automation.

  • The Vanishing Junior Developer: As AI takes over routine coding, demand will shift to skilled engineers who can handle edge cases and fine-tune AI output. But this raises a concern: how will developers become experts without cutting their teeth on simpler tasks? Without the experience of building, breaking, and learning, the pipeline of future talent could be at risk.

  • Software Engineering Is All About Trade-offs: Engineering is the art of balancing competing priorities - performance, cost, maintainability, user experience, and more. As systems become more sophisticated (think AI, big data, always-on real-time services), architectural decisions grow more critical. These decisions often require hands-on technical depth and cannot be left to automation. For more on this see my blog "Trade-offs Are Inevitable in Software Delivery - Remember the CAP Theorem" (https://bankloch.blogspot.com/2024/04/trade-offs-are-inevitable-in-software.html).

While these nuances make it clear that software engineers aren’t going anywhere, their role is undeniably changing.

Some parts of software engineering are likely to disappear fast:

  • Scaffolding and boilerplate code: Basic frameworks and setup logic will be automated.

  • Documentation: Much of it will be generated directly from the code.

And some parts will evolve:

  • Requirements gathering will become more interactive, driven by rapid prototyping.

  • New specializations will emerge, such as automatic code migration of legacy stacks, transforming AI prototypes into products, tuning AI-augmented business solutions via prompting, optimizing code for specific non-functional requirements (cfr. my blog "The Hidden Potential of AI: Minimizing Resource Consumption in Software" - https://bankloch.blogspot.com/2024/12/the-hidden-potential-of-ai-minimizing.html)

  • Automated testing: Unit and integration tests will be AI-generated, but still require human validation and tuning.

Finally as software will become easier to build, it is likely that open source will also move up the value chain. Traditionally focused on low-level components (OS, databases, logging, etc.), open source is increasingly expanding toward business-oriented systems. This will require a new kind of developer - one who can customize open-source solutions for specific organizational needs while actively engaging with the community to maintain the solution. Cfr. my blog "Unlocking Business Value: Moving Beyond Low-Level Programming" (https://bankloch.blogspot.com/2024/10/unlocking-business-value-moving-beyond.html) for more info.

In short, while coding itself may become increasingly automated, the ability to understand business context and make sound architectural decisions will be the real differentiator. Those who understand the "why" behind the code will continue to lead.

Comments

Popular posts from this blog

Transforming the insurance sector to an Open API Ecosystem

1. Introduction "Open" has recently become a new buzzword in the financial services industry, i.e.   open data, open APIs, Open Banking, Open Insurance …​, but what does this new buzzword really mean? "Open" refers to the capability of companies to expose their services to the outside world, so that   external partners or even competitors   can use these services to bring added value to their customers. This trend is made possible by the technological evolution of   open APIs (Application Programming Interfaces), which are the   digital ports making this communication possible. Together companies, interconnected through open APIs, form a true   API ecosystem , offering best-of-breed customer experience, by combining the digital services offered by multiple companies. In the   technology sector   this evolution has been ongoing for multiple years (think about the travelling sector, allowing you to book any hotel online). An excelle...

RPA - The miracle solution for incumbent banks to bridge the automation gap with neo-banks?

Hypes and marketing buzz words are strongly present in the IT landscape. Often these are existing concepts, which have evolved technologically and are then renamed to a new term, as if it were a brand new technology or concept. If you want to understand and assess these new trends, it is important to   reduce the concepts to their essence and compare them with existing technologies , e.g. Integration (middleware) software   ensures that 2 separate applications or components can be integrated in an easy way. Of course, there is a huge evolution in the protocols, volumes of exchanged data, scalability, performance…​, but in essence the problem remains the same. Nonetheless, there have been multiple terms for integration software such as ETL, ESB, EAI, SOA, Service Mesh…​ Data storage software   ensures that data is stored in such a way that data is not lost and that there is some kind guaranteed consistency, maximum availability and scalability, easy retrieval...

IoT - Revolution or Evolution in the Financial Services Industry

1. The IoT hype We have all heard about the   "Internet of Things" (IoT)   as this revolutionary new technology, which will radically change our lives. But is it really such a revolution and will it really have an impact on the Financial Services Industry? To refresh our memory, the Internet of Things (IoT) refers to any   object , which is able to   collect data and communicate and share this information (like condition, geolocation…​)   over the internet . This communication will often occur between 2 objects (i.e. not involving any human), which is often referred to as Machine-to-Machine (M2M) communication. Well known examples are home thermostats, home security systems, fitness and health monitors, wearables…​ This all seems futuristic, but   smartphones, tablets and smartwatches   can also be considered as IoT devices. More importantly, beside these futuristic visions of IoT, the smartphone will most likely continue to be the cent...

AI in Financial Services - A buzzword that is here to stay!

In a few of my most recent blogs I tried to   demystify some of the buzzwords   (like blockchain, Low- and No-Code platforms, RPA…​), which are commonly used in the financial services industry. These buzzwords often entail interesting innovations, but contrary to their promise, they are not silver bullets solving any problem. Another such buzzword is   AI   (or also referred to as Machine Learning, Deep Learning, Enforced Learning…​ - the difference between those terms put aside). Again this term is also seriously hyped, creating unrealistic expectations, but contrary to many other buzzwords, this is something I truly believe will have a much larger impact on the financial services industry than many other buzzwords. This opinion is backed by a study of McKinsey and PWC indicating that 72% of company leaders consider that AI will be the most competitive advantage of the future and that this technology will be the most disruptive force in the decades to come. Deep Lea...

A bank account - A concept of the past

Almost every recent article written about banking starts with the statement that the   banking industry is being disrupted   by new competitors, new innovations and new technologies. Although this statement is definitely true, the extend of the disruption can still be debated. Even the most innovative neo-banks still work with bank (current, saving, term and investment) accounts, cards (credit and debit), traditional credits, existing payment infrastructure…​ The user experience surrounding the origination and servicing of these products has dramatically improved (and will continue to evolve), but the underlying banking products are not really disrupted. You could argue that banking products are so intertwined with society and our way of thinking about finance, that they can’t be disrupted, but looking at those products you cannot ignore that they are far from an optimal solution in our current digital world. Let’s consider   cards   for example. Isn’t ...

An overview of 1-year blogging

Last week I published my   60th post   on my blog called   Bankloch   (a reference to "Banking" and my family name). The past year, I have published a blog on a weekly basis, providing my humble personal vision on the topics of Fintech, IT software delivery and mobility. This blogging has mainly been a   personal enrichment , as it forced me to dive deep into a number of different topics, not only in researching for content, but also in trying to identify trends, innovations and patterns into these topics. Furthermore it allowed me to have several very interesting conversations and discussions with passionate colleagues in the financial industry and to get more insights into the wonderful world of blogging and more general of digital marketing, exploring subjects and tools like: Search Engine Optimization (SEO) LinkedIn post optimization Google Search Console Google AdWorks Google Blogger Thinker360 Finextra …​ Clearly it is   not easy to get the necessary ...

Peer-to-peer payments - A crucial component towards a cashless society

The Corona crisis has led to an exponential   decrease in the usage of cash , due to the associated hygienic problems and the enormous rise of eCommerce. While in commercial transactions cash is disappearing rapidly, it is however still commonly used for   informal money exchanges , like between friends, family, colleagues…​, but also those payments are becoming more and more digital, thanks to   peer-to-peer payment (P2P) solutions . These solutions drastically   improve the user experience   (removing friction) for both the person initiating the payment (= the payer) and the person receiving the payment (= the recipient), compared to a simple initiation of a wire transfer in a banking app. Before clarifying where those solutions bring most value, it is important to first identify the   typical use cases , where peer-to-peer payments are most common, as the P2P payment solutions need to optimally accommodate these use cases: Family giving a   cash gif...

The UPI Phenomenon: From Zero to 10 Billion

If there is one Indian innovation that has grabbed   global headlines , it is undoubtedly the instant payment system   UPI (Unified Payments Interface) . In August 2023, monthly UPI transactions exceeded an astounding 10 billion, marking a remarkable milestone for India’s payments ecosystem. No wonder that UPI has not only revolutionized transactions in India but has also gained international recognition for its remarkable growth. Launched in 2016 by the   National Payments Corporation of India (NPCI)   in collaboration with 21 member banks, UPI quickly became popular among consumers and businesses. In just a few years, it achieved   remarkable milestones : By August 2023, UPI recorded an unprecedented   10.58 billion transactions , with an impressive 50% year-on-year growth. This volume represented approximately   190 billion euros . In July 2023, the UPI network connected   473 different banks . UPI is projected to achieve a staggering   1 ...

From app to super-app to personal assistant

In July of this year,   KBC bank   (the 2nd largest bank in Belgium) surprised many people, including many of us working in the banking industry, with their announcement that they bought the rights to   broadcast the highlights of soccer matches   in Belgium via their mobile app (a service called "Goal alert"). The days following this announcement the news was filled with experts, some of them categorizing it as a brilliant move, others claiming that KBC should better focus on its core mission. Independent of whether it is a good or bad strategic decision (the future will tell), it is clearly part of a much larger strategy of KBC to   convert their banking app into a super-app (all-in-one app) . Today you can already buy mobility tickets and cinema tickets and use other third-party services (like Monizze, eBox, PayPal…​) within the KBC app. Furthermore, end of last year, KBC announced opening up their app also to non-customers allowing them to also use these thi...

Marketplaces in the financial industry - Here to stay?

Marketplaces are   hip and trendy   on the internet and will likely evolve even more in the near future. In some markets (like food delivery, transportation, commerce, holiday…​) they already represent double digit market shares (e.g. in 2018 $1.86 trillion was spent globally on the top 100 online marketplaces), but for the financial services sector, their impact (even though there are a few unicorn FinTechs in this space) on the industry is still limited. Any form of   intermediation   (travel agents, taxi dispatchers…​) will likely be replaced by a modern, digital and more direct equivalent, i.e. a digital marketplace. As the business of banks is exactly the intermediation between people having excess money and people needing money, the financial services sector will be significantly impacted. Furthermore, marketplaces are strongly intertwined with other concepts like the   gig-economy, the sharing-economy and the API-economy . All these trends will ultimately...