Building world-class engineering teams in the age of AI - The Pragmatic Summit
1049 segments
you know when we organized this this
event we we just wanted to be the answer
look look at the most important
questions that we are facing at that
time and this was 5 months ago and we
thought some of it might be AI but it it
turned out to be AI is is everywhere so
I'm I'm not going to beat around the
bush the two of you are very similar in
many ways you have
not like that
you've you you've run or are running
large organizations. You you're building
brands that developers love and and use
and and are engaged with. Thomas, you're
now starting something completely new.
So, you're also doing something
completely different. What is an AI
first or AI native team mean to you? And
I'll start with you Rajie.
>> Sure. F first of all, Gerge, thank you
for inviting me and uh thanks everyone
for coming. It's the energy here is just
palpable. So like it's really great to
be here and um I'm I'm really excited to
be talking about, you know, AI native
stuff. Everyone wants to talk about AI
these days. So it's fun. Um but what
does an AI native team look like? Um
well, first of all, you know, it starts
with the mindset, right? You have to
sort of really believe in uh doing AI
native work and working with agents and
things like that. We have teams at
Atlassian engineering teams, some of
which are still doing the more
traditional way of of coding and
building software because we do have
legacy systems that take that. But we
have a number of AI native teams where
engineers are basically writing zero
lines of code. It's all agents. It's
orchestration of agents. Um what we are
finding is the lines are blurring
between PM design and engineering where
uh PMs are writing code, designers are
writing code. This is basically leading
to more productivity generally speaking.
And u the thing I find is that the teams
are not necessarily getting smaller but
they are producing a lot more sometimes
2x 5x more and uh the creativity is
going up. What you build is is much more
creative. You can put in like
screenshots of things and design you
know more modern UX um and and then you
can also between PMs designs and
engineers the the distance is shrinking
as well. So that's making for more uh
vigorous conversation and more
creativity. I find that the discussion
about using AI to produce more
efficiency and maybe smaller teams and
fewer engineers is missing the point.
It's more about what can you create now
with AI that you could not create before
and how can you be that much more
productive and how can you have that
much more joy.
You know, I think there's multiple
answers to this. Rajie gave one of them.
If I think about the word AI native in
the same context as cloud native, um
when GitHub started in 2008, nobody
spoke about cloud native. It is a term
that was introduced after the fact after
in identifying how all these companies
reinvented how they're deploying and and
and developing systems. And I think the
same is going to be true for AI native.
What we're calling AI native now is
going to be very different than uh what
is going to be AI native in a few years.
And I have two two boys 13 and 11 and
most of the time they're playing
Minecraft. Sometimes I can also convince
them to code but certainly they are AI
native. You know, one day they came
home, I think it was a year or two ago,
and they showed me their cell phones and
they had like puppy images on the on the
front p on the home screen and they use
Adobe Firefly to generate these images.
And I'm like, how the hell did you find
Adobe Firefly? Oh, everybody in school
is using it. And I think that's the AI
native generation, those that are
growing up now with these agents. For
them, it will be just so natural to use
an agent instead of going to, you know,
a Google search or I mean trying to find
it to do the the traditional way. And I
think if we're all honest to ourselves,
you know, there's a lot of sorry
out there of how all dayto-day
is a native and I'm using agents for
everything. You know, I'm a startup
founder. Most of the time I'm still
dealing with HR systems and my my month
and close and getting, you know, uh,
directors of board insurance and that's
a form that I have to fill out. No agent
helps me with any of that. And if you
hear that in podcast, I'm like, "Sure,
sure, sure." You know, like in theory
that is my life. But in reality, h you
know, yesterday we announced uh my my
company. Since then, I got like hundreds
of emails from investors that want to
absolutely still angel invest into the
seat round. People that have 12 years of
experience are the best developers, you
know, on the planet, yet they're sending
me an email to to apply for a job. And
and I'm I'm looking for the agent that
solves all that for me instead of just
trying to figure out how can I be both
nice human to give them response, but
also let them know that I'm not
interested in, you know, that
conversation right now because I want to
build a company. So I think that's the
like the the c qu crux of AI native
teams today in a software development.
Yes, we're going to use cloud code or or
some agent to build code, but no, we're
not going to feed Markdown files into
that. Like 3,000 software engineers all
collaborating on markdown, that is a
nightmare, right? Um if you have then
folks in Germany, you know, that speak
English with an accent or in Spain or in
India and China and whatnot that don't
actually are as fluent in English, it's
actually an even worse nightmare because
programming language is great. It
reduces vocabulary on like 20 words that
everybody can speak. As soon as you have
to describe a feature in a language that
you don't actually think in, it's really
really hard. And I think we haven't
figured any of that out.
>> And how are your teams today using
tools? How have their workflows changed?
>> I think the biggest change in the
workflow is that um you basically most
uh uh developers that start Greenfield
from scratch today and and have used
cloud code is that they force themselves
to not look at the code. uh and that
basically it starts with
>> that that's happening at your teams
right
>> that's happening I think that's
happening everywhere in the industry
like in all the people I'm interviewing
uh whether they work at Microsoft GitHub
or Atlassian or thought works or or
block or so
>> easy with the poaching there
>> well I'm
all coming to me you know
>> but all Thomas yeah
>> well you know um you a third about a
third of the our team of my startup
entire is Australian because one of the
co-founders um is actually um went to
high school with me in East Berlin and
then immigrated to Australia. Um and so
the Australian press didn't uh um um let
that uh opportunity go to a little
bit on Atlassian yesterday when the
announcement came uh because your stock
price is down and whatnot has nothing to
do with us. But of course, you know,
that's not how the press works. Um
>> it's all the sad stuff, you know.
>> Yeah. H anyway, um where was I? um
developers, you know, that want to be AI
native, what they're doing is try to
look at little as code as pos at the
code as possible and force yourselves to
figure it out with a prompt and a
reasoning process and and voicing
intent, right? And then same way with
code review ideally, you know, I never
read the code line by line because
that's going to become increasing
bottleneck. I have like cursor buckbot
or or one of these tools point out the
mistakes to me and I'm waiting for the
moment and I think uh uh a previous
session alluded to this that let's just
have the code review bot or agent work
with the coding agent. Why would you
need the human in the middle of that?
And I think that's where that the what
the the most AI native developers are
right now is the ones that uh have
figured out how to do that and that is a
skill in itself and that's I think
answering the question are we going to
replace humans with agents? No, we are
upleveling the humans to become the the
masters of these of these agents. Yeah.
And on tools I think like the there's
two parts to it right. is that coding
and implementation is becoming free to
the point where the bottleneck is
shifting to what I call the left of code
and the right of code on the left of
code it's about planning and specking
and there increasingly one of the tools
we are using in a classion a lot is
confluence because confluence is where
the intent and the spec and yes it's
mostly English language and Thomas makes
a good point about language but um
that's where you are putting in really
what you want to build uh especially for
product oriented engineers they're going
in and putting in a lot of comments and
our agents are able to read the comments
and go off in a Ralph loop and you know
solve things which is really amazing. uh
but yeah left of code and then right of
code it's the standard stuff CI/CD
deployment incidents sees how do you
find that out so using agents to do that
is is what we're doing so I'd say we are
looking at it holistically across the
entire software development life cycle
we call it the AI native SDLC all the
way from ideation to coding to like
deployment in production we we are
changing the tool set quite a bit
>> okay what about rooev tell me what
roboev is
>> yeah yeah yeah so roboev is a coding
agent but it's also our brand for like
doing uh things across the entire SDLC.
So we using it for code reviews, we're
using it for CI/CD, we are using it for
uh incident resolution.
>> So you built your own coding agent.
>> Yes. Uh now here interesting thing is we
are using anthropics model. Uh but in
the benchmark we actually beat plot
code. Uh which is sounds amazing. How
does how do you do that using their
model? Well, it comes down to one magic
word which is context. Um agents are as
smart as the context you give. And in
Atlassian we have built what is called
the teamwork graph which is you know who
does Thomas work with on which um PR on
which issue in Jira and that context
really helps uh rob do a much better job
with the PR it produces
what is happening with distributed teams
Thomas you mentioned that your team is
spread across a bunch of different time
zones which is super unusual for a early
stage startup usually the conventional
wisdom is like be in the same office
you're going to be riffing at the each
Why did you decide to go distributed and
does AI have to do anything with this?
>> First of all, I want to say, you know, I
I'm a strong believer of everybody needs
to find their own happiness, right? And
there's just similar to the relationship
that you have in your personal life,
it's same with the relationship you have
with your company. There is not one
perfect approach. And if you want to
work in a company that has a beautiful
office in San Francisco, great. You want
to work in a hybrid scenario, also
great. And I love working in remote
teams because I love traveling. Uh I
love the 247 coverage if you have people
in Australia, in Germany, in Spain, uh
in Lisbon and uh UK, whatever in in in
United States in the different time
zones. And that makes my life happy and
doesn't mean that anybody else is wrong
in in how they're running the company.
Um what it does though is if you have a
remote team is that you're lonely,
right? And lonely in might be in the
kind of like co alone at home sense, but
also in the who is available for me to
ask the question. And it's much easier
to do that in an office environment
because you can kind of figure out well
Gerley is only you know surfing on X and
and and posting and whatnot and uh so I
can ask him a question and um never
never and and uh and and in the same
time if you're busy in a conversation
with Rajie then obviously I won't run
into the conference room and ask you hey
can you do this code review for me and I
think agents basically gave us these
bearings partners these e experts that I
can just ask and say hey I want to
brainstorm on this topic I need to write
an ADR or like solve a problem. You
know, I was uh over the weekend
preparing a launch. So, I figured out I
need not only a terms of service and a
privacy policy, I also need a cookie
policy. So, I was trying to figure out
how do I do that in the React app and I
just asked Cursor Composer to do that
for me and it was done in 3 seconds,
right? And I think that's the the remote
work um with the help of agent has
gotten a new level that wasn't possible
before because I have always somebody
available my code review agent my coding
agent know my brainstorming agent my
research agents all these kind of things
and then I and I think that's for us the
huge benefit especially if you have
these launch days right if you everybody
in the same time zone in the same office
at some point you need to go home like
that's just the reality if you have
folks in Australia by the time it's 6
p.m. here it's like noon or something in
Melbourne and so they're still working
and maintaining you know the engagement
on discord and and the open source
project. I think in some ways you know
agents have gotten as an advantage again
you know for being remote first uh and
that you know other teams that work in
the office together you know have on on
their side when when they can brainstorm
in front of whiteboard. It evened out a
little bit of the competitive
disadvantage that certainly has evolved
here in San Francisco as most of the AI
native companies have gotten back into
office.
>> And Reie, how are you seeing this cuz
you've been you have distributed teams.
Is it changing?
>> Yeah. Um well, we have we are actually
Atlassian has been uh leaning into
distributed teams way before like even
before COVID. So when actually co
happened it was super natural for us to
um to be in that kind of situation. Our
software naturally is for collaboration
across distributed teams that we're not
remote. We have offices. We have offices
in San Francisco, in Sydney, in in
different parts of the world. So we do
believe in like that intentional
togetherness you get when human beings
come together and and work together. So
we're not like a remote only, remote
first kind of company. But uh we don't
mandate you coming into the office. We
like you can work from anywhere. We call
it team anywhere. You can work from
anywhere. You can work with people. And
to Thomas's point, I think agents have
changed things a lot. Like I remember
the days when I was in the office at 2
a.m. writing code and you get stuck and
all you can do is like read the code and
read the code more until you understand
it and figure it out. Uh well now you
can ask an agent and the agent can
explain it for you or even better do the
code for you. So I think with agents
it's gotten even better and easier for
us to be able to be distributed in this
in this fashion.
And you know like a big thing that we're
all seeing you're seeing it as well the
role of software engineer changing and
the role of the engineing leader the
engineing manager changing from your
vantage point what are you seeing
happening so far what do you expect and
especially looking at at last are are
you are you doing any change in in terms
of like defining the role or thinking
about or relaxing some of the things
that you've kind of had had in place
before? Yeah, we we think about it in
terms of like uh what changes with
respect to ownership, accountability,
things like that, right? And what we're
finding is it's less about code
ownership. It's more about like now the
artifacts are shifting to things like
Confluence and Jira and even Loom. We
have a lot of uh interaction through a
product we acquired called Loom that's
now partian product and you can express
a lot more uh intent and thoughts and
video and so feeding that into our AI
agents and using that to produce better
artifacts. um the ownership is shifting
towards that and then the accountability
part is increasing as well instead of
like a lot of code reviews and trying to
understand whether the code is good
which you still have to do but the
agents help you it's about verification
right uh what are the guardrails what
are the inputs and outputs that you want
to verify that so that you know that the
AI code is good and that the agents have
done a good job uh that's where the
ownership and accountability is shifting
and so that's that's how we are thinking
about it but in terms of team structures
and managers and PMs and designers and
engineers we aren't
thinking we're not doing like radical
changes yet. What we are focusing on is
that team structure, that team that's
producing the feature. How can they do
more? How can they be more creative? Uh
we're not going down the path of saying,
"Oh, let's do it, you know, with fewer
people necessarily." That's not the
biggest thing. In some cases, we do find
10x even 100x more productivity and we
then reshape the team for that. But our
angle is more how do you unleash more
creativity and how do you do more?
>> Can you tell me a tiny bit more when you
say like you see more productivity team
and you reshape the team for that? What
could that mean or what does that mean?
Well, we've tried some projects where uh
we are like, hey, what if we didn't
write any code manually? Like what does
that look like? Right? And uh that
forces you to think differently. That
forces you to organize a repo
differently. That forces you to um set
up the rules for the agents differently.
The agents uh don't have enough context.
When you have a repo with full of code,
it can start off in a better place. And
so that forces you to sort of really be
AI native AI first. And we're finding
that in those cases, we make a lot of
progress. You can get real good
productivity. But if you have a legacy
codebase uh that has been around for a
long time, it's not as easy, right? We
find that, you know, it takes a lot more
effort and things like that. And so we
have done a lot of progress with Robo
Dev, but it's not yet at the point where
you can give it like a complex project
on a legacy codebase. And I think that's
a hard problem that a lot of people are
working on. I think we'll get there very
soon, but that's an area where you can't
go and and be as aggressive.
Yeah. I have two angles on this. I think
one is, you know, we we're constantly in
this problem that we have way too many
ideas in life and way too many things to
do. You know, one of my jokes is that
when you're single, your Saturday
morning is great. You have all the plans
for the weekend. When you're married
with kids, uh all the plans that you had
on Saturday morning didn't happen by
Sunday night because your family
determined what you're actually doing
over the weekend. And the same is true
in software projects. And the way we're
solving this is we're writing things
down in to-do lists and we're moving
them into linear backlogs. and your
backlog gets longer and longer and
somebody just throw it all away and
start fresh and bring up the same ideas
again. And what we're now doing with
agents, we're shifting this one step to
the right where we just feed all of that
into agents and agents write all the
code and now you have your backlog and
your pull requests. And there's the
bottleneck now because you can't review
all of that. Uh, and then are going to
be agents that review all that code and
auto merge and auto deploy it. And what
you get is the Homer Simpsons car,
right? because all the ideas you had,
you know, without without any process
and any creativity and and and product
management and whatnot leads to products
that have lots of features that look
like Homer Simpson. I don't everybody
has that picture in your head. The the
flip side of that is, you know, that and
then obviously we need to so that we
still need product managers and
designers and engineers to actually
architect products that are really
great. And um every time you're using a
product that's not great, you know,
exactly that that's the case, right?
Like that's it's easier for us to find
something bad than finding something
good. At the same time, I think we're
seeing going to see a massive role
collapse um between the traditional
engineering roles, right? Um you're not
the pragmatic product product manager
and the product designer, but I actually
think the product manager is becoming a
product engineer and the designer is
becoming a design engineer and the
software engineer stays a software
engineer. And so the ven diagram of
these roles is overlapping much more.
I think it was this morning's session or
maybe it was the off the record session
yesterday, but uh we're seeing a lot of
that where product managers in companies
um are now forced to as an as an
expectation of their job to use a coding
agent to build a prototype instead of
just writing a document and handing it
off. Now that's the obvious part of
this, but it's also true for your
marketer, for your coms people, for your
assistant. all those folks are already
using lovable or ripple it or any of
these tools to actually automate part of
their life. And then the question
becomes is it the bad cop uh like in the
I think it was in the Phoenix project
that blocks everybody from deploying or
do we find ways in the organizations to
actually let everybody be a builder and
and contribute to back to what
ultimately is the goal of every
organization which is as a team together
we are much more powerful than as
individuals right that's the Dutch
trading company philosophy if if you go
back where companies come from and we
have to find these processes and I think
that's the thing that we haven't really
figured out of how in a secure way and
uh trustworthy A we can ship amazing
products, you know, by moving much
faster through the life cycle while at
the same time empowering everybody in
the company to to do so.
>> And we we've talked about this is the
engineer role and of course like how the
designers and and product managers are
getting closer. What about the
engineering leader? You know, you you've
got a lot of outstanding engineering
leaders inside at Lash and how do you
see their roles changing and you know
Thomas like as you're going to be
hiring, who would you hire for? Like
before you would have obviously hired
for every 10 engineers like an engine
manager or something like that. How how
will that change for you? So I'll I'll
start off with you Rajie.
>> Yeah, I think one of the most exciting
things for engineering leaders including
myself is we can write more code now.
Like you know um I love writing code. I
I over the holidays you know bought a
laptop and you know because sometimes
you can't install things because of it
but like Iought
I bought my own personal laptop at the
Apple store installed cloud code and you
know built an app bunch of Python
scripts and things like that. Um and and
you know for someone who has grown up
writing code for my bar for my own code
is super high like as it is for all my
engineers and so like for me to take a
time out to go and build a whole new
feature it it's it's a lot of time in
the old traditional way but now I can do
it much faster with robo dev with with
agents and things like that and it's
always satisfying to go join a hackathon
build something and write code and so
for all the leaders I think it's like
you know you can get a lot more
connected because sometimes as a leader
you go up the chain and then you get
more disconnected from code and
engineers and now I think that is that
gap is shrinking. The other thing that's
interesting that's happening is the span
of control is changing. I've always
advocated for you know the the
degenerate case of where you have a team
of 400 engineers. You take the square
root of 400 and you have essentially 20
direct reports each having 20 direct
reports and then it's just two layers of
management. Uh but usually most most
organizations have people who have like
five or three reports that most
degenerate cases the binary tree right
two reports two reports two reports all
the way down. Um but I think the span of
controls will increase. I think you know
Tibo I think talked about having 33
direct reports. You know Jensen talks
about
>> 33. Yeah.
>> Yeah. Yeah. Having like 40 or 50. Yeah.
I think like people will have more
direct reports and fewer managers and
managers will be more connected with the
quotes. I think all of this is really a
good thing.
>> As a followup, what about the
traditional career path? traditional oh
my gosh I'm talking like you know like
pre like 2020 2022 because we were used
to there was a career path like be a you
know software engineer senior engineer
then either staff engineer engine
manager senior engine manager director
senior director etc. What do you think
might happen just in taking educated
guess?
>> Well, first of all, um you know, anytime
somebody asks me about career path as an
engineer, but the first thing I tell
people is don't be a manager. Okay. Um
you know, in fact, I did that myself
when I started out. Somebody gave me
that advice. And so the for the first
many years of my career, I avoided being
a manager as far as I could um until I
found decisions being made that I didn't
understand. And so then I popped my head
up to see okay what the hell is
happening and that sort of thing and
then joined the dark side. But like um
you know
>> worked out pretty good in the end.
>> Yeah. Yeah. But uh I'd say like you know
for for engineers like I mean it's it's
it's a great time to be alive. Like I
would just write code, use agents,
figure this out, do all the advanced,
you know, cutting edge stuff for a
while. I mean we don't know where the
future is going but like you'll be fine
if you're an engineer writing code.
Managers and leaders, it's a little
tougher. I think there might be fewer of
them. I think uh it's exciting if you
are want to be hands-on that it's
amazing. Um I think there's less of like
leadership management blah blah blah.
It's more of like doing and like
figuring things out in this new world.
And those who do I think will do well.
Those who want to like stick to the old
career paths might have to find
something else.
I have three things. One, number one,
for all the startup founders. Every time
an investor asks you how they're
preventing the incumbent doing the same
thing that you're doing, just tell them
that the CTO of Atlassian had to buy a
laptop on his own money to start coding.
That's the best answer I can give
because it shows you how even, you know,
relatively agile companies that actually
develop agile tools, you know, can't
really do what you can do in 5 minutes.
Um, I I'll fix it. I'll fix it once I
acquire your company, Thomas. Oh, you
can you can get their assets. You can
get their assets and use them for
coding. Um, number two is I think what
happened in the last two years uh
through um coding agents like C-pilot,
Kursa and Devon is that many CTOs and
CIOS even in the largest banks in this
country and many other countries have
realized they can go back to coding
because it no longer takes hours to
install all the packages and figure out
all the problems. And so I actually I
have friends in that in that space that
told me stories of like on every night
they would give Devon a task and and say
Devon built me this and then on the
morning would check the check in with
the developer at the agent and then keep
going that way and then they have their
normal day-to-day as a as a CTO of a big
bank and you do that for two weeks and
you realize everything is going to
change and has to change in my
organization and in contrast to the you
know Twilio founders ask your developer
where the developer decides bottoms up
what the tools are. Those folks went
into the into their organization says I
don't want to hear any excuses. We're
going to roll out agents and you know um
many banks still are on very archive
systems and they have developers like to
Citrix and and what have you and often
the CTO was not empowered to override
this because of CISO concerns and and
what have you. And I think that has
dramatically changed because basic gets
our hands dirty again and realize how
powerful this technology is. And that
shift is happening. You see this
everywhere like no other software
development technology has been adopted
as fast as agents right like most German
companies you know Japanese companies
other international are still not in the
cloud uh because of all the kinds of
concerns that they heard from the legal
team security teams and whatnot and then
there's the third piece you know when
you ask about leadership and manager you
know when I became a manager um the
first time I became really manager was
when I my startup got acquired by
Microsoft because CEO of a 10 person
startup you're not actually a manager
you're just one of 10 and you're the
speaker and it has to do payroll and and
and pitch to customers and I became a
manager and I realized, oh god, now I
have to hire people, which means I have
to write a job description and do
interviews and I have to write
performance reviews. You know, when CHPT
came out, all of a sudden we just would
ask Chet PT to write the performance
review for us and of course the
employees did the same on their site and
if you have worked at Microsoft every
like the employee has to fill out like I
think seven input fields on their side
and then the manager has to react to
those seven input fields. And if you're
uh a lazy developer manager, you write I
agree with you and the employee is not
happy about that.
>> Hang on.
>> And so you kind of hack that system by
just asking Chatty which then in reverse
is then give me just the bullets that
you put into Chat GBT. So at least I
know how you're prompting.
>> So you became the CEO of GitHub with
this mentality.
>> You know that God does GitHub. you know
the you know the the the key um the key
I know pragma if you will or dogma um by
the way we are joking in the green room
I think the next one is the dogmatic
summit and so we have all the dogmas on
stage is much more entertaining I think
um is developers first right developers
first is what what we always said at
GitHub for everything we design for
every process for the marketing and when
we fail um you can see that a hacker
news is very very straight right like
when a GitHub blog post or GitHub tweet
or a message is too corporate, quote
unquote. Developers won't like that and
they don't want to have that. Um, give
me the truth, give me the direct
conversation, don't give me all the
marketing bull. That works for other
products, but it doesn't work for
developer tools, right? And I think the
same is true for being a people manager,
an engineering manager of a team, like
your team knows exactly whether you're
talking straight to them and giving them
the truth or whether you're sugar
coating that they're actually not doing
so well and you're kind of like trying
to tell give them the message that you
either improve or or you get the out,
right? And and and I think this is where
you know the AI is changing this because
this I'm spending an hour of writing a a
a pified you know summary of a
performance of course the engineer just
feeds that into chatbt backwards and
says what did Thomas actually mean and
did he use AI to write this and all of
that and I think this is this is a good
thing like you know when we when we
think about um AIdriven sales processes
hell I don't want an AI email from a
sales uh uh uh from a sales agent to
sell me some outsource ing company or
something like that. Just I want an AI
that deletes all that and tells them to
never contact me again, right? And I
think the same is true like for people
management. It's so much more it's so
much more enjoyable when you have a
relationship with your pe with your with
your team members, your IC's that's on
on an honest trustworthy basis like you
hopefully have you know with your spouse
at home and and your kids and whatnot.
And I think that is going to shift
because you can no longer cheat your way
as a people manager into being the
nicest manager of everybody while in
reality uh you you're having you're
struggling with all the problems in your
team.
>> I mean you heard it from the former the
last CEO of of GitHub you know
management might actually become like a
bit more enjoyable. Thanks for that.
looking at your current teams now, what
is the biggest change that's already
happened in in how you're working and
what do you expect to happen this coming
year?
>> Yeah, I I mean like clearly the biggest
change is agentic coding and using um
agents to do stuff like in Atlassian
rodev is used by all our engineers um
>> all the engineers.
>> Yes. Yes.
>> Nice.
>> Yes. Uh code reviews. I mean every day I
see the percentage of you know diffs
that are through code reviews are
increasing quite a bit. um PRs per
engineer have gone up 89%. Issue cycle
time has got has gone down 42%. 51% of
security vulnerabilities are now cut
through agents. So we're seeing like
massive change in in our productivity
output metrics the Dora metrics all of
that is going up you know going well up
meaning well um because of agent
encoding and that sort of thing. And uh
more than the metrics I'd say like we
are we are really excited about how we
are working across PM design and
engineering because we build a lot of
products like Jira confluence and so
that that loop is very important for us
and we are finding that because uh PMs
are using like replet and things like
that they're producing actually better
specs that are much more uh aminable to
being close to the product that we want
easier for engineers to go implement and
so definitely seeing a lot of change.
What will happen in the future I think
is um this notion of building products
with actually zero lines of code manual
coding I would say uh because today it's
a mix of like some manual coding some
agents um I think we will get to the
point where we just trust the code
reviews done by the agents and not have
to have too much human review over that
um I think we move towards more
verification of inputs and outputs to
see the system performing according to
the right security reliability
performance bars less about inspection
of code and And then if I were to look
out I know that TB didn't want to look
out two years but if I look out two
years uh plus uh maybe we don't have
programming languages and IDEs anymore
and we have some kind of AI JVM or
something that just sort of does things
and because like if you think about it
programming languages are there because
like you know we don't want to write
assembly and we need something to tell
the computer what to do but like if AI
is able to do that and you know you're
able to debug using AI as well then it
shifts to a higher level intent and you
don't need maybe programming. Now that's
super extreme. I don't know if it'll go
there, but it is conceivable and so
that's really exciting to think about
what that word would look like. From the
CEO perspective, I think there's two
drastic changes. One is uh costs are
through the roof. Um and as everybody
who manages a larger team has some fixed
opex budget uh that is you know mostly
your salaries, your benefits and then
some travel and expenses, right? All of
a sudden, we have flexible token costs.
And the more productive you you had all
this impressive statistics, the more
productive your developers are, the more
your costs are going through the roof
and you actually create an inversion
where you have to slow down some
developers because they're burning so
many tokens and then they're like,
"Well, then I will build less features,
right?" And that's something that a
startup founder only deals with when
when the money runs out, the run rate
gets shorter. But a a big manager in a
in a corporation will actually have to
figure out with their with their finance
team, right? What the traditional
approach to this will no longer work.
and you actually want to encourage teams
to burn more tokens. And you talked in a
very early session this morning about
OpenAI's billions uh tokens and they
don't have to pay for them. Obviously,
that's not true. They're paying for the
GPUs to to Azure and and Oracle and and
whatnot. But that's I think a drastic
change to how we're managing teams. Um
that all of a sudden you had and look
what nobody wants to do is fire people
to offset the cost of the tokens, right?
Because the the human cost of that is is
way higher than the benefits. I think
the very positive version of that is
coding is fun again. And I, you know, I
learned coding on a Commodore 64 in the
early 1990s and then I had a 3860x40
with a turbo switch and a pensium and
whatnot. And I remember the days when I
couldn't solve any of my problems
because all I had was books and computer
club was only Wednesdays and you were
just stuck, right? And you went to bed
frustrated and and and uh and then in
the morning hopefully you had some, you
know, intuition of how to solve that
problem. Came the internet, came forums,
all of a sudden you could talk to
people. Now you can just in 3 seconds,
you know, ask the agents to figure it
out. And I think, you know, we're
underestimating the power of these
agents because we all think about code
generation. I think the best scenario is
actually have some stupid build error or
npm error or something on the terminal
and just feed that into codeex and say,
"Hey, go and solve this. I don't want to
deal with any of that." Right? I think
that's it's way more fun than it ever
was. Same for unit testing. Raise your
hand if you love wring unit tests.
Right? Like, oh, that's the one. Um uh
>> I'm I'm I'm looking for Ken back.
>> No, the the exception to the rule,
right? But like that that's so powerful
to just say write write me unit tests
and and or or fix the tests and and and
what have you. Coding is fun again and
it brings us back to when we learned
coding. I think what agents have done is
it bring us back to the joy of um uh
coding and I was at OpenAI a month ago
or so and they showed a couple of
builders the new Codex Mac app um and uh
made sure we're all in the NDA but now
the app is out so I can talk about it
and um was a bit you know food and and
presentation and then we all had some
coding time and I built three native Mac
apps like in Swift UI without ever
looking at the code right and and that's
just and I had a menu by app and
somebody was yesterday on X saying I
love building menu by apps on on Mac,
right? And it's so easy. And if you ever
tried that yourself in in going on, you
know, GitHub, Google, stack overflow,
whatever, have it even setting up just
the Xcode project to hide the doc icon
and have it only in the menu bar, you
you have given up and and the idea has,
you know, flown away by the time you
actually had the first build running.
And I think that's just so incredible.
And whether that applies to all our
hobby projects, but ultimately got us
into this profession, hopefully. uh
whether or it's uh you know doing work
at Atlassian or at ENTIA or GitHub. I
think that's what what is so amazing
about this and that is the actual um
drastic and the productivity is great
you know for the CFO and the CEO and the
and and and then the the stock public
stock markets but what really matters to
us is our job is fun again
>> 100%.
>> And I I I love that. So thank you so
much Rajie and Tomas and especially for
that nice ending. This was great. Thank
you. Let's give a round of applause to
them.
Ask follow-up questions or revisit key timestamps.
The discussion focuses on the impact of AI on software development, team structures, and leadership. Speakers highlight that AI is transforming work from a mindset shift to practical application, with engineers writing less code and relying on agents for orchestration. This leads to increased productivity and creativity, blurring lines between roles like PM, design, and engineering. AI is also enabling distributed teams by providing constant 'expert' agents, overcoming the loneliness and availability challenges of remote work. The role of engineering leaders is changing, with more opportunities to code and an increased span of control. While some productivity gains are massive, challenges remain with legacy codebases and managing the rising costs of AI token usage. Ultimately, AI is making coding more enjoyable by automating tedious tasks and empowering developers to focus on higher-level intent and creativity.
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