Will Agentic AI drive a shift from ’traditional’ to ’AI powered programming’?

Investing.com -- Agentic AI is set to "transform the Tech stack" and "drive a shift from ’traditional’ to ’AI-powered programming,’" according to a note from Bernstein. 

The firm told investors that the rapid evolution of large language models (LLMs) and autonomous AI systems could fundamentally alter how software is developed, automated, and maintained.

"Bulk of basic coding tasks" will soon be handled by AI, Bernstein notes, as companies push for faster software development.

AI will not only generate code but also "provide precise estimates for feature development, setting new benchmarks for productivity & quality," said the firm.

However, they acknowledge that human oversight will remain critical to ensure software quality and manage AI-generated code.

Beyond software development, "autonomous AI systems" are expected to "redefine enterprise automation."

Bernstein explains that businesses are already experimenting with AI agents to streamline workflows, optimize decision-making, and "tackle complex, multi-step objectives."

With AI taking over routine coding tasks, Bernstein predicts the "global programmer population to decline over the next decade." 

They believe the demand will likely shift toward a more specialized workforce focused on "system architecture, integration & oversight of these AI tools."

Cost efficiency is said to be a major driver of this transformation. Bernstein highlights that "AI agents are ~20x cheaper than traditional human labor." 

Bernstein adds that ServiceNow (NYSE:NOW), for example, estimates that its AI-driven processes generate "$325 million in annualized value" by increasing workplace productivity by 20% and saving 400,000 labor hours annually.

Furthermore, Bernstein believes that the IT industry’s approach to software development is "going to change," with labor-intensive models in BPM and legacy IT services facing the greatest risk. 

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Bernstein concludes that AI could "reduce technical debt, simplify complex architecture," and pave the way for a more efficient, automated future.

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