A positive outlook on the effects of AI in the future of software engineering

// An artist’s illustration of artificial intelligence (AI). This image represents the concept of Artificial General Intelligence (AGI). It was created by artist Domhnall Malone.

2022 was a wild ride for software development. The industry experienced a massive boom, with the number of software positions worldwide more than tripling. I joined DrDoctor at this peak. I remember walking into our Southwark, London office and hearing that more than half of the team had joined within the last two months. I also saw firsthand the explosion of coding bootcamps—training academies promising to turn complete beginners into software engineers in three months, often with deferred tuition until the first job.

From 2018 to 2022, new opportunities emerged to build real-world solutions, innovate in the digital space, and learn from a diverse pool of developers with different personalities, ambitions and backgrounds. It truly felt like a golden era—but also a bubble, one that seemed destined to burst. Looking at job postings since 2022, seems like that moment has finally arrived.

A major factor behind this shift was the end of zero-percent interest rates. I recently learned how much this fueled the tech hiring spree. In a low-interest-rate environment, tech companies had some of the best conditions for growth. Banks were lending money at rates below 1%, making it easier than ever for startups to raise funds, promise aggressive growth to investors, and take risks—including hiring at an unprecedented scale. But as of 2022, interest rates hit a 20-year high (a stark contrast to the near-0% rates of 2008, which we all know how it ended).** Raising funds became harder and harder**. Growth slowed. Companies realized they had already hired enough engineers for the years ahead. And just like that, the hiring frenzy ended.

Now, AI is dominating the conversation. It’s one of the greatest technological achievements of our time, and its impact on software development is undeniable. Generative AI and large language models (LLMs) are the perfect tools for software engineers. They help us move faster, document better, cross-check efficiently, and get second opinions instantly (maybe not the best opinions, but opinions regardless). AI is the biggest productivity boost software development has ever seen. Engineering challenges are easier to tackle, bottlenecks are less painful, and getting stuck happens less.

It all starts to make sense—there was massive overhiring of developers in recent years, and now AI is enabling engineers to do more with less. Building digital products is simpler than ever. What once required multiple engineers can now be done with fewer. Our tooling is more robust, and frameworks have evolved to be more powerful and efficient. Look at Next.js, which seamlessly integrates client and server-side development, plus many more other quick implementations to most common front-end problems.

// An artist’s illustration of artificial intelligence (AI). This image depicts how AI can help humans to understand the complexity of biology. It was created by artist Khyati Trehan.

With all of this in mind, I believe the future of software engineering lies in smaller, highly adaptable engineering teams. AI is the perfect bridge for transitioning from specialized roles, like front-end or back-end development, to full-stack positions. This shift benefits clients too. Custom software is becoming more accessible, effective, and secure, as AI accelerates development for skilled engineers. Hopefully, the perception that "custom software is too expensive and takes too long" will change. Thanks to advancements in tooling and AI, creating high-quality, robust software will be faster and more cost-effective than ever.

We’re also seeing the rise of software development by non-developers, sometimes called “vibe coding". It’s never been easier to build a prototype, MVP, or proof of concept without traditional programming. This democratization of software fosters true innovation. The barrier to entry for software creation is lower than ever, and we already see successful examples of this in the wild. As a developer, I want these projects to succeed—not just because I love seeing innovation take place and believe it is the most important factor in a successful economy, but because successful projects mean investment in refining and scaling those MVPs. That’s where experienced engineers come in, helping to transform promising concepts into fully-fledged businesses.

Smaller engineering teams, composed of adaptable developers eager to embrace new technologies and challenges, aren’t going anywhere. In fact, they’ll thrive. The future belongs to engineers who are curious, flexible, and open to learning new languages, frameworks and languages. As AI enables us to do more with less, the focus will shift toward the entrepreneurial aspects of building products—solving increasingly complex problems in an ever-evolving world. Traditional companies may even find it easier to bring development in-house rather than relying on agencies.

Of course, there’s speculation that AI will eventually become advanced enough to think like a human, build any type of software in seconds, and scale it autonomously. I’m open to that possibility, but I don’t see it happening—at least not yet. Software development isn’t just about programming. It encompasses a whole set of very complex and human areas which include entrepreneurship, people management, digital architecture, data security, artistic endeavour, user experience, working under pressure, thriving under a very competitive market, creativity, customer service and support, listen and react to feedback while pivoting quickly, finances, so on and so on. These are deeply human challenges that AI alone cannot solve, right?

// An artist’s illustration of artificial intelligence (AI). This image represents how machine learning is inspired by neuroscience and the human brain. It was created by Novoto Studio.

Call me an optimist, but I believe small teams of software engineers will thrive in this new era—as long as they’re willing to embrace change. The future favors those who adapt, learn, and evolve with the technology that’s reshaping our industry.

We can now do more with less, how could that be a bad thing?