Too many executives are cutting software engineering teams because they bought into the fantasy that AI can now build and maintain enterprise applications with only a few people around to supervise the machine. That idea isn’t bold. It isn’t visionary. It’s reckless, and more executives will suffer the consequences of their mistakes beyond just a bad quarter.
Yes, AI can write code. That much is clear. The problem is that many vendors and leaders have taken this fact and exaggerated it into something absurd: the idea that software engineering has become essentially optional. They believe that if a model can generate application logic, then experienced developers, architects, and performance engineers are suddenly unnecessary expenses. This kind of thinking might seem clever in a boardroom presentation, but it falls apart in real-world production.
How this story unravels
The applications often work, which makes this approach deceptively effective. The demo succeeds, and, at first, the feature seems to function properly. Everyone congratulates themselves. But then the system is deployed at scale and the cloud bill skyrockets. What used to cost $10,000 a month on AWS suddenly jumps to $300,000 or more. In the worst cases, companies face multimillion-dollar monthly cloud costs for systems that should never have been built that way in the first place.
