The drama is real and silent. Hundreds of companies are operating with resources stuck in a coding model that AI has already turned into a commodity.
What will become of traditional Software Factories?
Software factories that cannot—or do not know how to—reconvert are doomed: their business model based on billing "junior development hours" crumbles when an AI agent performs that same work in seconds, with superior technical precision.
The Volume Trap: Charging for "pounding code" is a suicidal strategy today. Value has shifted from mechanical production to strategic orchestration.
Resources vs. Talents: Most factories have "resources" that only follow instructions; today's market demands engineers who know how to give instructions to AI.
The Operational Abyss: Without a deep reconversion, these structures will only be able to compete by lowering prices to irrelevance, delivering mediocre software that no one will want to maintain.
The Spotify Model: Stream-aligned Teams
Elite companies like Spotify have already completed this transition, evolving their Stream-aligned Teams (the traditional Squads). In these teams, AI is not an external tool but an "agent" integrated into the workflow.
The IA provides the speed; the human provides the judgment, security, and architecture.
In Room 714, we are already leading this metamorphosis for our clients: we help companies redesign their processes so their teams stop being ticket factories and become continuous value delivery units.
A transformation not for the faint of heart
In this ecosystem, the hierarchy changes: the "smart ones" (engineers with a business vision) don't waste time writing every line; they "order" and supervise AI agents that execute the brute force. They provide appropriate contexts that guide the AI's decisions and avoid unnecessary complexities.
Are you paying for a programmer's manual effort or for the intelligence of a team that orchestrates solutions?
AI is not going to destroy software development; it is going to destroy companies that do not provide thought. If your provider is still billing you for "base development" hours, they are selling you an expensive and obsolete past.
