Steve Taplin is the CEO and cofounder of Sonatafy Technologyproviding experienced nearshore software developers and engineers.
We keep hearing the same story: AI will revolutionize software development. Ten times faster productivity, fully automated coding, no more bugs and AI that can build entire applications from a single prompt. The hype machine is in full swing, and the funding follows closely behind.
I’ve been building software companies for decades, and if there’s one lesson I’ve learned, it’s that whenever the noise gets this loud, it’s time to cut through the headlines and focus on the data. AI is reshaping software development, but not in the way most people expect. The reality is a fundamental change, but one that is messier, slower and far more expensive than the marketing promises suggest.
The Productivity Paradox Nobody Talks About
AI coding tools are pitched as game-changers. GitHub claims developers complete tasks 55% faster using Copilot, while another study found an average increase of 26% in the number of pull requests completed per week. These stats sound impressive.
But independent research tells another story. A 2025 study by METR observed 16 experienced developers using tools like Cursor and Claude. The result? Developers were 19% slower when using AI tools, despite believing they were 20% faster.
On my podcast, Software Leaders UncensoredI’ve interviewed over 100 CTOs. Their verdict: AI brings efficiencies, but they are far smaller than the hype suggests. AI gets you 70% of the way to a solution quickly, but the last 30%—debugging, integrating with systems, hardening for security and ensuring maintainability—often takes longer than starting from scratch.
Actionable Insight: Treat AI output as a first draft, not a finished product. Build team processes that assume extra review, not less. Measure productivity based on working, tested code in production, not just how quickly a draft is generated.
The Trust Problem Is Growing
Adoption depends on trust, and right now, trust is eroding. I have over 100 full-time software engineers working at my company, and only 30% of them trust AI accuracy. Nearly half actively distrust AI output, with “solutions that are almost right, but not quite” cited as the top frustration.
Debugging your own code is one thing. Debugging AI-generated code is another—it requires reverse engineering what the AI “thought” it was doing. That’s slower, not faster.
Actionable Insight: Establish a “trust but verify” culture. Encourage developers to treat AI-generated code like code from a junior teammate: Review everything thoroughly and never merge without complete validation.
Security: The Hidden Crisis
One of the most alarming risks is security. Studies show that 45% of AI-generated code contains exploitable vulnerabilities. We’re seeing a resurgence of issues like SQL injection, cross-site scripting, buffer overflows and hardcoded credentials. AI models replicate decades of insecure patterns from public code. These flaws are rarely obvious—they often require domain expertise and threat modeling to detect.
Actionable Insight: Integrate mandatory security scans into every workflow involving AI output. Don’t rely on developers manually catching issues. Pair AI-assisted development with automated vulnerability scanning (Snyk, SonarQube, Semgrep) and enforce security reviews as non-negotiable.
The Real Costs Nobody Calculated
Licensing is just the start. Most companies underestimate the actual costs of AI adoption. Consider:
• Training And Onboarding: $25,000 to $40,000 per team to reach proficiency.
• Infrastructure: Usage-based pricing that can hit five figures monthly for large teams.
• Context Switching: Productivity is lost when moving between AI and traditional workflows.
• Quality Assurance: Extra layers to catch AI-generated bugs and vulnerabilities.
Many companies have tried to speed up with AI, only to end up slowing down.
Actionable Insight: Run a TCO (total cost of ownership) analysis before adopting AI tools. Account for training, QA and hidden workflow costs. Pilot with a small team, measure against clear KPIs and scale only then.
Real Failures You Don’t Hear About
The headlines celebrate wins, but failures matter more.
Actionable Insight: Build a failure log for your AI adoption. Document not just what works, but what breaks. Share across teams so mistakes don’t repeat.
Where AI Works—And Where It Doesn’t
AI excels at:
• Boilerplate code generation
• Documentation
• Repetitive, well-defined tasks
• Explaining unfamiliar code
AI struggles with:
• Architecture decisions
• Legacy code maintenance
• Security-critical work
• Performance optimization
• Tasks requiring deep business context
Actionable Insight: Utilize AI when you need speed without context. Keep humans in control where context, creativity or judgment matter.
The Bottom Line: Augmentation, Not Replacement
AI won’t replace developers, but developers who master AI will replace those who don’t.
The companies succeeding with AI use it as a force multiplier, not a substitute. They automate routine work, maintain human oversight for critical decisions and keep investing in core technical skills.
Software development is still fundamentally human. Creativity, context and problem-solving drive business value. AI can help speed up parts of the process, but it cannot replace the thinking that makes software powerful.
If you want to separate hype from reality:
• Benchmark your own data. Measure productivity and stability before and after the adoption of AI.
• Mandate human oversight. Code reviews, security audits and QA remain essential.
• Start small. Pilot in low-risk areas, gather objective evidence, then scale.
• Invest in skills. Developers who use AI effectively are worth more, not less.
That’s how you use AI intelligently: Cut through the noise and build better.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
