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Building world-class engineering teams in the age of AI - The Pragmatic Summit

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Building world-class engineering teams in the age of AI - The Pragmatic Summit

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1049 segments

0:05

you know when we organized this this

0:06

event we we just wanted to be the answer

0:10

look look at the most important

0:12

questions that we are facing at that

0:13

time and this was 5 months ago and we

0:15

thought some of it might be AI but it it

0:17

turned out to be AI is is everywhere so

0:19

I'm I'm not going to beat around the

0:21

bush the two of you are very similar in

0:24

many ways you have

0:27

not like that

0:32

you've you you've run or are running

0:34

large organizations. You you're building

0:37

brands that developers love and and use

0:39

and and are engaged with. Thomas, you're

0:42

now starting something completely new.

0:44

So, you're also doing something

0:44

completely different. What is an AI

0:48

first or AI native team mean to you? And

0:52

I'll start with you Rajie.

0:53

>> Sure. F first of all, Gerge, thank you

0:55

for inviting me and uh thanks everyone

0:57

for coming. It's the energy here is just

0:59

palpable. So like it's really great to

1:01

be here and um I'm I'm really excited to

1:03

be talking about, you know, AI native

1:05

stuff. Everyone wants to talk about AI

1:06

these days. So it's fun. Um but what

1:09

does an AI native team look like? Um

1:11

well, first of all, you know, it starts

1:13

with the mindset, right? You have to

1:15

sort of really believe in uh doing AI

1:17

native work and working with agents and

1:20

things like that. We have teams at

1:21

Atlassian engineering teams, some of

1:22

which are still doing the more

1:23

traditional way of of coding and

1:25

building software because we do have

1:27

legacy systems that take that. But we

1:28

have a number of AI native teams where

1:31

engineers are basically writing zero

1:33

lines of code. It's all agents. It's

1:35

orchestration of agents. Um what we are

1:37

finding is the lines are blurring

1:39

between PM design and engineering where

1:42

uh PMs are writing code, designers are

1:43

writing code. This is basically leading

1:45

to more productivity generally speaking.

1:48

And u the thing I find is that the teams

1:50

are not necessarily getting smaller but

1:52

they are producing a lot more sometimes

1:54

2x 5x more and uh the creativity is

1:57

going up. What you build is is much more

2:00

creative. You can put in like

2:02

screenshots of things and design you

2:04

know more modern UX um and and then you

2:07

can also between PMs designs and

2:09

engineers the the distance is shrinking

2:11

as well. So that's making for more uh

2:14

vigorous conversation and more

2:15

creativity. I find that the discussion

2:18

about using AI to produce more

2:20

efficiency and maybe smaller teams and

2:21

fewer engineers is missing the point.

2:23

It's more about what can you create now

2:25

with AI that you could not create before

2:27

and how can you be that much more

2:28

productive and how can you have that

2:30

much more joy.

2:32

You know, I think there's multiple

2:34

answers to this. Rajie gave one of them.

2:36

If I think about the word AI native in

2:38

the same context as cloud native, um

2:40

when GitHub started in 2008, nobody

2:42

spoke about cloud native. It is a term

2:44

that was introduced after the fact after

2:46

in identifying how all these companies

2:48

reinvented how they're deploying and and

2:50

and developing systems. And I think the

2:52

same is going to be true for AI native.

2:54

What we're calling AI native now is

2:55

going to be very different than uh what

2:57

is going to be AI native in a few years.

2:59

And I have two two boys 13 and 11 and

3:02

most of the time they're playing

3:03

Minecraft. Sometimes I can also convince

3:04

them to code but certainly they are AI

3:06

native. You know, one day they came

3:08

home, I think it was a year or two ago,

3:10

and they showed me their cell phones and

3:11

they had like puppy images on the on the

3:13

front p on the home screen and they use

3:15

Adobe Firefly to generate these images.

3:18

And I'm like, how the hell did you find

3:19

Adobe Firefly? Oh, everybody in school

3:21

is using it. And I think that's the AI

3:23

native generation, those that are

3:24

growing up now with these agents. For

3:26

them, it will be just so natural to use

3:28

an agent instead of going to, you know,

3:30

a Google search or I mean trying to find

3:33

it to do the the traditional way. And I

3:35

think if we're all honest to ourselves,

3:37

you know, there's a lot of sorry

3:38

out there of how all dayto-day

3:41

is a native and I'm using agents for

3:43

everything. You know, I'm a startup

3:44

founder. Most of the time I'm still

3:45

dealing with HR systems and my my month

3:49

and close and getting, you know, uh,

3:51

directors of board insurance and that's

3:52

a form that I have to fill out. No agent

3:54

helps me with any of that. And if you

3:56

hear that in podcast, I'm like, "Sure,

3:57

sure, sure." You know, like in theory

3:59

that is my life. But in reality, h you

4:01

know, yesterday we announced uh my my

4:03

company. Since then, I got like hundreds

4:04

of emails from investors that want to

4:06

absolutely still angel invest into the

4:08

seat round. People that have 12 years of

4:10

experience are the best developers, you

4:11

know, on the planet, yet they're sending

4:13

me an email to to apply for a job. And

4:15

and I'm I'm looking for the agent that

4:17

solves all that for me instead of just

4:18

trying to figure out how can I be both

4:20

nice human to give them response, but

4:22

also let them know that I'm not

4:23

interested in, you know, that

4:25

conversation right now because I want to

4:27

build a company. So I think that's the

4:28

like the the c qu crux of AI native

4:31

teams today in a software development.

4:33

Yes, we're going to use cloud code or or

4:35

some agent to build code, but no, we're

4:37

not going to feed Markdown files into

4:39

that. Like 3,000 software engineers all

4:41

collaborating on markdown, that is a

4:43

nightmare, right? Um if you have then

4:45

folks in Germany, you know, that speak

4:47

English with an accent or in Spain or in

4:50

India and China and whatnot that don't

4:52

actually are as fluent in English, it's

4:54

actually an even worse nightmare because

4:55

programming language is great. It

4:56

reduces vocabulary on like 20 words that

4:59

everybody can speak. As soon as you have

5:01

to describe a feature in a language that

5:02

you don't actually think in, it's really

5:04

really hard. And I think we haven't

5:05

figured any of that out.

5:07

>> And how are your teams today using

5:10

tools? How have their workflows changed?

5:14

>> I think the biggest change in the

5:15

workflow is that um you basically most

5:18

uh uh developers that start Greenfield

5:20

from scratch today and and have used

5:22

cloud code is that they force themselves

5:24

to not look at the code. uh and that

5:26

basically it starts with

5:27

>> that that's happening at your teams

5:28

right

5:28

>> that's happening I think that's

5:29

happening everywhere in the industry

5:30

like in all the people I'm interviewing

5:32

uh whether they work at Microsoft GitHub

5:34

or Atlassian or thought works or or

5:36

block or so

5:37

>> easy with the poaching there

5:38

>> well I'm

5:41

all coming to me you know

5:44

>> but all Thomas yeah

5:49

>> well you know um you a third about a

5:52

third of the our team of my startup

5:54

entire is Australian because one of the

5:56

co-founders um is actually um went to

5:59

high school with me in East Berlin and

6:00

then immigrated to Australia. Um and so

6:02

the Australian press didn't uh um um let

6:06

that uh opportunity go to a little

6:08

bit on Atlassian yesterday when the

6:09

announcement came uh because your stock

6:11

price is down and whatnot has nothing to

6:12

do with us. But of course, you know,

6:13

that's not how the press works. Um

6:15

>> it's all the sad stuff, you know.

6:16

>> Yeah. H anyway, um where was I? um

6:21

developers, you know, that want to be AI

6:23

native, what they're doing is try to

6:25

look at little as code as pos at the

6:27

code as possible and force yourselves to

6:29

figure it out with a prompt and a

6:30

reasoning process and and voicing

6:32

intent, right? And then same way with

6:34

code review ideally, you know, I never

6:36

read the code line by line because

6:37

that's going to become increasing

6:38

bottleneck. I have like cursor buckbot

6:40

or or one of these tools point out the

6:42

mistakes to me and I'm waiting for the

6:44

moment and I think uh uh a previous

6:46

session alluded to this that let's just

6:48

have the code review bot or agent work

6:50

with the coding agent. Why would you

6:52

need the human in the middle of that?

6:53

And I think that's where that the what

6:55

the the most AI native developers are

6:57

right now is the ones that uh have

6:59

figured out how to do that and that is a

7:01

skill in itself and that's I think

7:02

answering the question are we going to

7:03

replace humans with agents? No, we are

7:06

upleveling the humans to become the the

7:08

masters of these of these agents. Yeah.

7:11

And on tools I think like the there's

7:13

two parts to it right. is that coding

7:15

and implementation is becoming free to

7:17

the point where the bottleneck is

7:18

shifting to what I call the left of code

7:20

and the right of code on the left of

7:22

code it's about planning and specking

7:25

and there increasingly one of the tools

7:27

we are using in a classion a lot is

7:28

confluence because confluence is where

7:30

the intent and the spec and yes it's

7:33

mostly English language and Thomas makes

7:35

a good point about language but um

7:37

that's where you are putting in really

7:39

what you want to build uh especially for

7:41

product oriented engineers they're going

7:42

in and putting in a lot of comments and

7:45

our agents are able to read the comments

7:46

and go off in a Ralph loop and you know

7:48

solve things which is really amazing. uh

7:50

but yeah left of code and then right of

7:52

code it's the standard stuff CI/CD

7:54

deployment incidents sees how do you

7:57

find that out so using agents to do that

7:59

is is what we're doing so I'd say we are

8:02

looking at it holistically across the

8:03

entire software development life cycle

8:05

we call it the AI native SDLC all the

8:07

way from ideation to coding to like

8:09

deployment in production we we are

8:11

changing the tool set quite a bit

8:13

>> okay what about rooev tell me what

8:15

roboev is

8:16

>> yeah yeah yeah so roboev is a coding

8:18

agent but it's also our brand for like

8:20

doing uh things across the entire SDLC.

8:23

So we using it for code reviews, we're

8:24

using it for CI/CD, we are using it for

8:27

uh incident resolution.

8:28

>> So you built your own coding agent.

8:30

>> Yes. Uh now here interesting thing is we

8:32

are using anthropics model. Uh but in

8:34

the benchmark we actually beat plot

8:36

code. Uh which is sounds amazing. How

8:38

does how do you do that using their

8:39

model? Well, it comes down to one magic

8:41

word which is context. Um agents are as

8:45

smart as the context you give. And in

8:46

Atlassian we have built what is called

8:48

the teamwork graph which is you know who

8:50

does Thomas work with on which um PR on

8:53

which issue in Jira and that context

8:56

really helps uh rob do a much better job

8:58

with the PR it produces

9:01

what is happening with distributed teams

9:03

Thomas you mentioned that your team is

9:06

spread across a bunch of different time

9:07

zones which is super unusual for a early

9:10

stage startup usually the conventional

9:12

wisdom is like be in the same office

9:13

you're going to be riffing at the each

9:16

Why did you decide to go distributed and

9:18

does AI have to do anything with this?

9:21

>> First of all, I want to say, you know, I

9:22

I'm a strong believer of everybody needs

9:24

to find their own happiness, right? And

9:26

there's just similar to the relationship

9:28

that you have in your personal life,

9:30

it's same with the relationship you have

9:31

with your company. There is not one

9:33

perfect approach. And if you want to

9:34

work in a company that has a beautiful

9:36

office in San Francisco, great. You want

9:37

to work in a hybrid scenario, also

9:39

great. And I love working in remote

9:40

teams because I love traveling. Uh I

9:42

love the 247 coverage if you have people

9:44

in Australia, in Germany, in Spain, uh

9:46

in Lisbon and uh UK, whatever in in in

9:49

United States in the different time

9:50

zones. And that makes my life happy and

9:52

doesn't mean that anybody else is wrong

9:53

in in how they're running the company.

9:55

Um what it does though is if you have a

9:58

remote team is that you're lonely,

10:00

right? And lonely in might be in the

10:02

kind of like co alone at home sense, but

10:05

also in the who is available for me to

10:07

ask the question. And it's much easier

10:09

to do that in an office environment

10:10

because you can kind of figure out well

10:12

Gerley is only you know surfing on X and

10:14

and and posting and whatnot and uh so I

10:17

can ask him a question and um never

10:20

never and and uh and and in the same

10:23

time if you're busy in a conversation

10:25

with Rajie then obviously I won't run

10:27

into the conference room and ask you hey

10:28

can you do this code review for me and I

10:30

think agents basically gave us these

10:33

bearings partners these e experts that I

10:35

can just ask and say hey I want to

10:37

brainstorm on this topic I need to write

10:39

an ADR or like solve a problem. You

10:41

know, I was uh over the weekend

10:43

preparing a launch. So, I figured out I

10:44

need not only a terms of service and a

10:47

privacy policy, I also need a cookie

10:48

policy. So, I was trying to figure out

10:50

how do I do that in the React app and I

10:52

just asked Cursor Composer to do that

10:53

for me and it was done in 3 seconds,

10:55

right? And I think that's the the remote

10:57

work um with the help of agent has

10:59

gotten a new level that wasn't possible

11:01

before because I have always somebody

11:02

available my code review agent my coding

11:04

agent know my brainstorming agent my

11:06

research agents all these kind of things

11:08

and then I and I think that's for us the

11:10

huge benefit especially if you have

11:11

these launch days right if you everybody

11:13

in the same time zone in the same office

11:15

at some point you need to go home like

11:16

that's just the reality if you have

11:18

folks in Australia by the time it's 6

11:20

p.m. here it's like noon or something in

11:22

Melbourne and so they're still working

11:23

and maintaining you know the engagement

11:26

on discord and and the open source

11:27

project. I think in some ways you know

11:29

agents have gotten as an advantage again

11:32

you know for being remote first uh and

11:35

that you know other teams that work in

11:36

the office together you know have on on

11:38

their side when when they can brainstorm

11:40

in front of whiteboard. It evened out a

11:42

little bit of the competitive

11:43

disadvantage that certainly has evolved

11:45

here in San Francisco as most of the AI

11:48

native companies have gotten back into

11:50

office.

11:50

>> And Reie, how are you seeing this cuz

11:52

you've been you have distributed teams.

11:54

Is it changing?

11:55

>> Yeah. Um well, we have we are actually

11:57

Atlassian has been uh leaning into

11:59

distributed teams way before like even

12:01

before COVID. So when actually co

12:02

happened it was super natural for us to

12:05

um to be in that kind of situation. Our

12:08

software naturally is for collaboration

12:10

across distributed teams that we're not

12:12

remote. We have offices. We have offices

12:13

in San Francisco, in Sydney, in in

12:15

different parts of the world. So we do

12:17

believe in like that intentional

12:18

togetherness you get when human beings

12:19

come together and and work together. So

12:21

we're not like a remote only, remote

12:23

first kind of company. But uh we don't

12:25

mandate you coming into the office. We

12:26

like you can work from anywhere. We call

12:28

it team anywhere. You can work from

12:29

anywhere. You can work with people. And

12:30

to Thomas's point, I think agents have

12:33

changed things a lot. Like I remember

12:34

the days when I was in the office at 2

12:36

a.m. writing code and you get stuck and

12:38

all you can do is like read the code and

12:40

read the code more until you understand

12:42

it and figure it out. Uh well now you

12:44

can ask an agent and the agent can

12:45

explain it for you or even better do the

12:46

code for you. So I think with agents

12:48

it's gotten even better and easier for

12:50

us to be able to be distributed in this

12:51

in this fashion.

12:53

And you know like a big thing that we're

12:55

all seeing you're seeing it as well the

12:57

role of software engineer changing and

12:59

the role of the engineing leader the

13:01

engineing manager changing from your

13:03

vantage point what are you seeing

13:05

happening so far what do you expect and

13:08

especially looking at at last are are

13:10

you are you doing any change in in terms

13:12

of like defining the role or thinking

13:14

about or relaxing some of the things

13:16

that you've kind of had had in place

13:18

before? Yeah, we we think about it in

13:21

terms of like uh what changes with

13:23

respect to ownership, accountability,

13:25

things like that, right? And what we're

13:27

finding is it's less about code

13:29

ownership. It's more about like now the

13:30

artifacts are shifting to things like

13:32

Confluence and Jira and even Loom. We

13:34

have a lot of uh interaction through a

13:36

product we acquired called Loom that's

13:37

now partian product and you can express

13:40

a lot more uh intent and thoughts and

13:42

video and so feeding that into our AI

13:45

agents and using that to produce better

13:47

artifacts. um the ownership is shifting

13:49

towards that and then the accountability

13:51

part is increasing as well instead of

13:52

like a lot of code reviews and trying to

13:54

understand whether the code is good

13:56

which you still have to do but the

13:57

agents help you it's about verification

13:59

right uh what are the guardrails what

14:01

are the inputs and outputs that you want

14:03

to verify that so that you know that the

14:05

AI code is good and that the agents have

14:07

done a good job uh that's where the

14:09

ownership and accountability is shifting

14:11

and so that's that's how we are thinking

14:12

about it but in terms of team structures

14:14

and managers and PMs and designers and

14:16

engineers we aren't

14:17

thinking we're not doing like radical

14:19

changes yet. What we are focusing on is

14:22

that team structure, that team that's

14:24

producing the feature. How can they do

14:25

more? How can they be more creative? Uh

14:27

we're not going down the path of saying,

14:28

"Oh, let's do it, you know, with fewer

14:30

people necessarily." That's not the

14:32

biggest thing. In some cases, we do find

14:34

10x even 100x more productivity and we

14:36

then reshape the team for that. But our

14:38

angle is more how do you unleash more

14:40

creativity and how do you do more?

14:41

>> Can you tell me a tiny bit more when you

14:43

say like you see more productivity team

14:44

and you reshape the team for that? What

14:47

could that mean or what does that mean?

14:49

Well, we've tried some projects where uh

14:51

we are like, hey, what if we didn't

14:53

write any code manually? Like what does

14:55

that look like? Right? And uh that

14:57

forces you to think differently. That

14:58

forces you to organize a repo

15:00

differently. That forces you to um set

15:02

up the rules for the agents differently.

15:04

The agents uh don't have enough context.

15:06

When you have a repo with full of code,

15:08

it can start off in a better place. And

15:10

so that forces you to sort of really be

15:12

AI native AI first. And we're finding

15:14

that in those cases, we make a lot of

15:16

progress. You can get real good

15:18

productivity. But if you have a legacy

15:20

codebase uh that has been around for a

15:22

long time, it's not as easy, right? We

15:24

find that, you know, it takes a lot more

15:26

effort and things like that. And so we

15:28

have done a lot of progress with Robo

15:30

Dev, but it's not yet at the point where

15:31

you can give it like a complex project

15:33

on a legacy codebase. And I think that's

15:34

a hard problem that a lot of people are

15:36

working on. I think we'll get there very

15:37

soon, but that's an area where you can't

15:39

go and and be as aggressive.

15:42

Yeah. I have two angles on this. I think

15:44

one is, you know, we we're constantly in

15:47

this problem that we have way too many

15:48

ideas in life and way too many things to

15:50

do. You know, one of my jokes is that

15:52

when you're single, your Saturday

15:54

morning is great. You have all the plans

15:55

for the weekend. When you're married

15:56

with kids, uh all the plans that you had

15:58

on Saturday morning didn't happen by

16:00

Sunday night because your family

16:01

determined what you're actually doing

16:02

over the weekend. And the same is true

16:03

in software projects. And the way we're

16:05

solving this is we're writing things

16:06

down in to-do lists and we're moving

16:08

them into linear backlogs. and your

16:10

backlog gets longer and longer and

16:11

somebody just throw it all away and

16:12

start fresh and bring up the same ideas

16:14

again. And what we're now doing with

16:16

agents, we're shifting this one step to

16:18

the right where we just feed all of that

16:19

into agents and agents write all the

16:21

code and now you have your backlog and

16:22

your pull requests. And there's the

16:23

bottleneck now because you can't review

16:25

all of that. Uh, and then are going to

16:27

be agents that review all that code and

16:28

auto merge and auto deploy it. And what

16:30

you get is the Homer Simpsons car,

16:32

right? because all the ideas you had,

16:33

you know, without without any process

16:35

and any creativity and and and product

16:36

management and whatnot leads to products

16:38

that have lots of features that look

16:40

like Homer Simpson. I don't everybody

16:42

has that picture in your head. The the

16:44

flip side of that is, you know, that and

16:46

then obviously we need to so that we

16:47

still need product managers and

16:49

designers and engineers to actually

16:50

architect products that are really

16:52

great. And um every time you're using a

16:54

product that's not great, you know,

16:56

exactly that that's the case, right?

16:57

Like that's it's easier for us to find

16:58

something bad than finding something

17:00

good. At the same time, I think we're

17:02

seeing going to see a massive role

17:03

collapse um between the traditional

17:06

engineering roles, right? Um you're not

17:07

the pragmatic product product manager

17:09

and the product designer, but I actually

17:11

think the product manager is becoming a

17:13

product engineer and the designer is

17:14

becoming a design engineer and the

17:16

software engineer stays a software

17:17

engineer. And so the ven diagram of

17:18

these roles is overlapping much more.

17:20

I think it was this morning's session or

17:22

maybe it was the off the record session

17:23

yesterday, but uh we're seeing a lot of

17:25

that where product managers in companies

17:27

um are now forced to as an as an

17:30

expectation of their job to use a coding

17:32

agent to build a prototype instead of

17:34

just writing a document and handing it

17:36

off. Now that's the obvious part of

17:38

this, but it's also true for your

17:40

marketer, for your coms people, for your

17:42

assistant. all those folks are already

17:45

using lovable or ripple it or any of

17:47

these tools to actually automate part of

17:49

their life. And then the question

17:50

becomes is it the bad cop uh like in the

17:52

I think it was in the Phoenix project

17:54

that blocks everybody from deploying or

17:56

do we find ways in the organizations to

17:58

actually let everybody be a builder and

18:00

and contribute to back to what

18:01

ultimately is the goal of every

18:02

organization which is as a team together

18:05

we are much more powerful than as

18:06

individuals right that's the Dutch

18:08

trading company philosophy if if you go

18:10

back where companies come from and we

18:12

have to find these processes and I think

18:13

that's the thing that we haven't really

18:15

figured out of how in a secure way and

18:18

uh trustworthy A we can ship amazing

18:20

products, you know, by moving much

18:22

faster through the life cycle while at

18:24

the same time empowering everybody in

18:25

the company to to do so.

18:27

>> And we we've talked about this is the

18:28

engineer role and of course like how the

18:30

designers and and product managers are

18:31

getting closer. What about the

18:33

engineering leader? You know, you you've

18:34

got a lot of outstanding engineering

18:37

leaders inside at Lash and how do you

18:38

see their roles changing and you know

18:40

Thomas like as you're going to be

18:41

hiring, who would you hire for? Like

18:43

before you would have obviously hired

18:45

for every 10 engineers like an engine

18:46

manager or something like that. How how

18:48

will that change for you? So I'll I'll

18:49

start off with you Rajie.

18:51

>> Yeah, I think one of the most exciting

18:52

things for engineering leaders including

18:53

myself is we can write more code now.

18:55

Like you know um I love writing code. I

18:58

I over the holidays you know bought a

19:00

laptop and you know because sometimes

19:02

you can't install things because of it

19:03

but like Iought

19:05

I bought my own personal laptop at the

19:07

Apple store installed cloud code and you

19:09

know built an app bunch of Python

19:11

scripts and things like that. Um and and

19:13

you know for someone who has grown up

19:15

writing code for my bar for my own code

19:17

is super high like as it is for all my

19:19

engineers and so like for me to take a

19:21

time out to go and build a whole new

19:22

feature it it's it's a lot of time in

19:24

the old traditional way but now I can do

19:26

it much faster with robo dev with with

19:29

agents and things like that and it's

19:31

always satisfying to go join a hackathon

19:33

build something and write code and so

19:35

for all the leaders I think it's like

19:37

you know you can get a lot more

19:38

connected because sometimes as a leader

19:39

you go up the chain and then you get

19:41

more disconnected from code and

19:43

engineers and now I think that is that

19:45

gap is shrinking. The other thing that's

19:47

interesting that's happening is the span

19:48

of control is changing. I've always

19:50

advocated for you know the the

19:52

degenerate case of where you have a team

19:54

of 400 engineers. You take the square

19:56

root of 400 and you have essentially 20

19:58

direct reports each having 20 direct

20:00

reports and then it's just two layers of

20:02

management. Uh but usually most most

20:04

organizations have people who have like

20:06

five or three reports that most

20:07

degenerate cases the binary tree right

20:09

two reports two reports two reports all

20:11

the way down. Um but I think the span of

20:13

controls will increase. I think you know

20:15

Tibo I think talked about having 33

20:16

direct reports. You know Jensen talks

20:18

about

20:18

>> 33. Yeah.

20:19

>> Yeah. Yeah. Having like 40 or 50. Yeah.

20:21

I think like people will have more

20:23

direct reports and fewer managers and

20:26

managers will be more connected with the

20:27

quotes. I think all of this is really a

20:28

good thing.

20:29

>> As a followup, what about the

20:30

traditional career path? traditional oh

20:32

my gosh I'm talking like you know like

20:33

pre like 2020 2022 because we were used

20:35

to there was a career path like be a you

20:37

know software engineer senior engineer

20:39

then either staff engineer engine

20:40

manager senior engine manager director

20:42

senior director etc. What do you think

20:44

might happen just in taking educated

20:45

guess?

20:47

>> Well, first of all, um you know, anytime

20:50

somebody asks me about career path as an

20:52

engineer, but the first thing I tell

20:53

people is don't be a manager. Okay. Um

20:57

you know, in fact, I did that myself

20:59

when I started out. Somebody gave me

21:00

that advice. And so the for the first

21:01

many years of my career, I avoided being

21:04

a manager as far as I could um until I

21:06

found decisions being made that I didn't

21:08

understand. And so then I popped my head

21:09

up to see okay what the hell is

21:11

happening and that sort of thing and

21:12

then joined the dark side. But like um

21:15

you know

21:15

>> worked out pretty good in the end.

21:16

>> Yeah. Yeah. But uh I'd say like you know

21:19

for for engineers like I mean it's it's

21:20

it's a great time to be alive. Like I

21:23

would just write code, use agents,

21:25

figure this out, do all the advanced,

21:28

you know, cutting edge stuff for a

21:30

while. I mean we don't know where the

21:31

future is going but like you'll be fine

21:32

if you're an engineer writing code.

21:34

Managers and leaders, it's a little

21:36

tougher. I think there might be fewer of

21:38

them. I think uh it's exciting if you

21:40

are want to be hands-on that it's

21:42

amazing. Um I think there's less of like

21:45

leadership management blah blah blah.

21:46

It's more of like doing and like

21:48

figuring things out in this new world.

21:49

And those who do I think will do well.

21:51

Those who want to like stick to the old

21:53

career paths might have to find

21:55

something else.

21:57

I have three things. One, number one,

21:58

for all the startup founders. Every time

22:00

an investor asks you how they're

22:01

preventing the incumbent doing the same

22:03

thing that you're doing, just tell them

22:04

that the CTO of Atlassian had to buy a

22:06

laptop on his own money to start coding.

22:10

That's the best answer I can give

22:11

because it shows you how even, you know,

22:14

relatively agile companies that actually

22:16

develop agile tools, you know, can't

22:19

really do what you can do in 5 minutes.

22:21

Um, I I'll fix it. I'll fix it once I

22:24

acquire your company, Thomas. Oh, you

22:26

can you can get their assets. You can

22:28

get their assets and use them for

22:29

coding. Um, number two is I think what

22:32

happened in the last two years uh

22:35

through um coding agents like C-pilot,

22:37

Kursa and Devon is that many CTOs and

22:40

CIOS even in the largest banks in this

22:42

country and many other countries have

22:43

realized they can go back to coding

22:44

because it no longer takes hours to

22:47

install all the packages and figure out

22:49

all the problems. And so I actually I

22:51

have friends in that in that space that

22:52

told me stories of like on every night

22:55

they would give Devon a task and and say

22:57

Devon built me this and then on the

22:58

morning would check the check in with

23:00

the developer at the agent and then keep

23:03

going that way and then they have their

23:04

normal day-to-day as a as a CTO of a big

23:07

bank and you do that for two weeks and

23:09

you realize everything is going to

23:11

change and has to change in my

23:12

organization and in contrast to the you

23:15

know Twilio founders ask your developer

23:18

where the developer decides bottoms up

23:19

what the tools are. Those folks went

23:21

into the into their organization says I

23:23

don't want to hear any excuses. We're

23:24

going to roll out agents and you know um

23:26

many banks still are on very archive

23:29

systems and they have developers like to

23:30

Citrix and and what have you and often

23:32

the CTO was not empowered to override

23:34

this because of CISO concerns and and

23:36

what have you. And I think that has

23:37

dramatically changed because basic gets

23:39

our hands dirty again and realize how

23:42

powerful this technology is. And that

23:43

shift is happening. You see this

23:44

everywhere like no other software

23:47

development technology has been adopted

23:48

as fast as agents right like most German

23:50

companies you know Japanese companies

23:52

other international are still not in the

23:54

cloud uh because of all the kinds of

23:55

concerns that they heard from the legal

23:57

team security teams and whatnot and then

23:58

there's the third piece you know when

24:00

you ask about leadership and manager you

24:01

know when I became a manager um the

24:03

first time I became really manager was

24:05

when I my startup got acquired by

24:06

Microsoft because CEO of a 10 person

24:08

startup you're not actually a manager

24:10

you're just one of 10 and you're the

24:12

speaker and it has to do payroll and and

24:13

and pitch to customers and I became a

24:15

manager and I realized, oh god, now I

24:18

have to hire people, which means I have

24:19

to write a job description and do

24:21

interviews and I have to write

24:22

performance reviews. You know, when CHPT

24:25

came out, all of a sudden we just would

24:26

ask Chet PT to write the performance

24:28

review for us and of course the

24:30

employees did the same on their site and

24:32

if you have worked at Microsoft every

24:35

like the employee has to fill out like I

24:36

think seven input fields on their side

24:39

and then the manager has to react to

24:40

those seven input fields. And if you're

24:42

uh a lazy developer manager, you write I

24:44

agree with you and the employee is not

24:46

happy about that.

24:47

>> Hang on.

24:47

>> And so you kind of hack that system by

24:49

just asking Chatty which then in reverse

24:51

is then give me just the bullets that

24:52

you put into Chat GBT. So at least I

24:54

know how you're prompting.

24:57

>> So you became the CEO of GitHub with

25:00

this mentality.

25:03

>> You know that God does GitHub. you know

25:04

the you know the the the key um the key

25:08

I know pragma if you will or dogma um by

25:12

the way we are joking in the green room

25:13

I think the next one is the dogmatic

25:15

summit and so we have all the dogmas on

25:17

stage is much more entertaining I think

25:19

um is developers first right developers

25:22

first is what what we always said at

25:23

GitHub for everything we design for

25:25

every process for the marketing and when

25:27

we fail um you can see that a hacker

25:29

news is very very straight right like

25:30

when a GitHub blog post or GitHub tweet

25:32

or a message is too corporate, quote

25:35

unquote. Developers won't like that and

25:37

they don't want to have that. Um, give

25:39

me the truth, give me the direct

25:40

conversation, don't give me all the

25:42

marketing bull. That works for other

25:44

products, but it doesn't work for

25:45

developer tools, right? And I think the

25:47

same is true for being a people manager,

25:50

an engineering manager of a team, like

25:52

your team knows exactly whether you're

25:53

talking straight to them and giving them

25:55

the truth or whether you're sugar

25:56

coating that they're actually not doing

25:57

so well and you're kind of like trying

25:59

to tell give them the message that you

26:00

either improve or or you get the out,

26:03

right? And and and I think this is where

26:05

you know the AI is changing this because

26:08

this I'm spending an hour of writing a a

26:11

a pified you know summary of a

26:14

performance of course the engineer just

26:16

feeds that into chatbt backwards and

26:18

says what did Thomas actually mean and

26:20

did he use AI to write this and all of

26:21

that and I think this is this is a good

26:23

thing like you know when we when we

26:24

think about um AIdriven sales processes

26:27

hell I don't want an AI email from a

26:29

sales uh uh uh from a sales agent to

26:32

sell me some outsource ing company or

26:34

something like that. Just I want an AI

26:35

that deletes all that and tells them to

26:37

never contact me again, right? And I

26:39

think the same is true like for people

26:41

management. It's so much more it's so

26:43

much more enjoyable when you have a

26:44

relationship with your pe with your with

26:46

your team members, your IC's that's on

26:48

on an honest trustworthy basis like you

26:50

hopefully have you know with your spouse

26:51

at home and and your kids and whatnot.

26:53

And I think that is going to shift

26:54

because you can no longer cheat your way

26:56

as a people manager into being the

26:59

nicest manager of everybody while in

27:00

reality uh you you're having you're

27:03

struggling with all the problems in your

27:04

team.

27:05

>> I mean you heard it from the former the

27:08

last CEO of of GitHub you know

27:09

management might actually become like a

27:11

bit more enjoyable. Thanks for that.

27:14

looking at your current teams now, what

27:17

is the biggest change that's already

27:19

happened in in how you're working and

27:21

what do you expect to happen this coming

27:23

year?

27:25

>> Yeah, I I mean like clearly the biggest

27:26

change is agentic coding and using um

27:29

agents to do stuff like in Atlassian

27:31

rodev is used by all our engineers um

27:34

>> all the engineers.

27:35

>> Yes. Yes.

27:36

>> Nice.

27:36

>> Yes. Uh code reviews. I mean every day I

27:39

see the percentage of you know diffs

27:41

that are through code reviews are

27:42

increasing quite a bit. um PRs per

27:45

engineer have gone up 89%. Issue cycle

27:48

time has got has gone down 42%. 51% of

27:52

security vulnerabilities are now cut

27:53

through agents. So we're seeing like

27:56

massive change in in our productivity

27:58

output metrics the Dora metrics all of

28:00

that is going up you know going well up

28:03

meaning well um because of agent

28:06

encoding and that sort of thing. And uh

28:08

more than the metrics I'd say like we

28:10

are we are really excited about how we

28:12

are working across PM design and

28:15

engineering because we build a lot of

28:17

products like Jira confluence and so

28:18

that that loop is very important for us

28:20

and we are finding that because uh PMs

28:22

are using like replet and things like

28:24

that they're producing actually better

28:25

specs that are much more uh aminable to

28:28

being close to the product that we want

28:30

easier for engineers to go implement and

28:32

so definitely seeing a lot of change.

28:33

What will happen in the future I think

28:35

is um this notion of building products

28:38

with actually zero lines of code manual

28:41

coding I would say uh because today it's

28:43

a mix of like some manual coding some

28:44

agents um I think we will get to the

28:47

point where we just trust the code

28:48

reviews done by the agents and not have

28:50

to have too much human review over that

28:53

um I think we move towards more

28:55

verification of inputs and outputs to

28:57

see the system performing according to

28:58

the right security reliability

29:00

performance bars less about inspection

29:02

of code and And then if I were to look

29:04

out I know that TB didn't want to look

29:05

out two years but if I look out two

29:07

years uh plus uh maybe we don't have

29:10

programming languages and IDEs anymore

29:13

and we have some kind of AI JVM or

29:15

something that just sort of does things

29:17

and because like if you think about it

29:19

programming languages are there because

29:21

like you know we don't want to write

29:22

assembly and we need something to tell

29:24

the computer what to do but like if AI

29:27

is able to do that and you know you're

29:29

able to debug using AI as well then it

29:32

shifts to a higher level intent and you

29:34

don't need maybe programming. Now that's

29:36

super extreme. I don't know if it'll go

29:37

there, but it is conceivable and so

29:39

that's really exciting to think about

29:41

what that word would look like. From the

29:43

CEO perspective, I think there's two

29:47

drastic changes. One is uh costs are

29:49

through the roof. Um and as everybody

29:52

who manages a larger team has some fixed

29:54

opex budget uh that is you know mostly

29:56

your salaries, your benefits and then

29:58

some travel and expenses, right? All of

30:00

a sudden, we have flexible token costs.

30:02

And the more productive you you had all

30:04

this impressive statistics, the more

30:05

productive your developers are, the more

30:07

your costs are going through the roof

30:08

and you actually create an inversion

30:10

where you have to slow down some

30:11

developers because they're burning so

30:13

many tokens and then they're like,

30:14

"Well, then I will build less features,

30:16

right?" And that's something that a

30:17

startup founder only deals with when

30:19

when the money runs out, the run rate

30:20

gets shorter. But a a big manager in a

30:22

in a corporation will actually have to

30:24

figure out with their with their finance

30:26

team, right? What the traditional

30:27

approach to this will no longer work.

30:29

and you actually want to encourage teams

30:31

to burn more tokens. And you talked in a

30:32

very early session this morning about

30:34

OpenAI's billions uh tokens and they

30:37

don't have to pay for them. Obviously,

30:38

that's not true. They're paying for the

30:39

GPUs to to Azure and and Oracle and and

30:42

whatnot. But that's I think a drastic

30:44

change to how we're managing teams. Um

30:46

that all of a sudden you had and look

30:48

what nobody wants to do is fire people

30:50

to offset the cost of the tokens, right?

30:52

Because the the human cost of that is is

30:54

way higher than the benefits. I think

30:56

the very positive version of that is

30:58

coding is fun again. And I, you know, I

31:00

learned coding on a Commodore 64 in the

31:03

early 1990s and then I had a 3860x40

31:07

with a turbo switch and a pensium and

31:08

whatnot. And I remember the days when I

31:10

couldn't solve any of my problems

31:11

because all I had was books and computer

31:13

club was only Wednesdays and you were

31:15

just stuck, right? And you went to bed

31:16

frustrated and and and uh and then in

31:19

the morning hopefully you had some, you

31:21

know, intuition of how to solve that

31:22

problem. Came the internet, came forums,

31:24

all of a sudden you could talk to

31:25

people. Now you can just in 3 seconds,

31:27

you know, ask the agents to figure it

31:28

out. And I think, you know, we're

31:30

underestimating the power of these

31:31

agents because we all think about code

31:33

generation. I think the best scenario is

31:35

actually have some stupid build error or

31:38

npm error or something on the terminal

31:39

and just feed that into codeex and say,

31:41

"Hey, go and solve this. I don't want to

31:43

deal with any of that." Right? I think

31:44

that's it's way more fun than it ever

31:46

was. Same for unit testing. Raise your

31:48

hand if you love wring unit tests.

31:50

Right? Like, oh, that's the one. Um uh

31:53

>> I'm I'm I'm looking for Ken back.

31:55

>> No, the the exception to the rule,

31:57

right? But like that that's so powerful

31:59

to just say write write me unit tests

32:00

and and or or fix the tests and and and

32:03

what have you. Coding is fun again and

32:05

it brings us back to when we learned

32:06

coding. I think what agents have done is

32:08

it bring us back to the joy of um uh

32:10

coding and I was at OpenAI a month ago

32:13

or so and they showed a couple of

32:14

builders the new Codex Mac app um and uh

32:18

made sure we're all in the NDA but now

32:19

the app is out so I can talk about it

32:21

and um was a bit you know food and and

32:23

presentation and then we all had some

32:25

coding time and I built three native Mac

32:27

apps like in Swift UI without ever

32:29

looking at the code right and and that's

32:31

just and I had a menu by app and

32:33

somebody was yesterday on X saying I

32:35

love building menu by apps on on Mac,

32:37

right? And it's so easy. And if you ever

32:39

tried that yourself in in going on, you

32:41

know, GitHub, Google, stack overflow,

32:43

whatever, have it even setting up just

32:44

the Xcode project to hide the doc icon

32:47

and have it only in the menu bar, you

32:49

you have given up and and the idea has,

32:51

you know, flown away by the time you

32:53

actually had the first build running.

32:54

And I think that's just so incredible.

32:56

And whether that applies to all our

32:58

hobby projects, but ultimately got us

32:59

into this profession, hopefully. uh

33:01

whether or it's uh you know doing work

33:03

at Atlassian or at ENTIA or GitHub. I

33:05

think that's what what is so amazing

33:07

about this and that is the actual um

33:09

drastic and the productivity is great

33:11

you know for the CFO and the CEO and the

33:13

and and and then the the stock public

33:15

stock markets but what really matters to

33:17

us is our job is fun again

33:20

>> 100%.

33:21

>> And I I I love that. So thank you so

33:23

much Rajie and Tomas and especially for

33:26

that nice ending. This was great. Thank

33:28

you. Let's give a round of applause to

33:29

them.

Interactive Summary

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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