A new wave of artificial intelligence (AI) tools that turn plain English into working software is upending the way companies build and buy technology, threatening billions in traditional IT spending.
This shift comes as companies face increasing pressure to digitize their operations amid a chronic shortage of software developers. Tech startup Agemo now offers AI tools that allow non-technical workers to create their business applications by describing what they need. As traditional software vendors and IT consultancies face disruption, early adopters of businesses report faster implementation times and lower costs.
“AI-driven software development would enable non-technical business teams to quickly prototype business ideas without relying heavily on developers,” software developer Daryle Serrant told PYMNTS. “Tools like those being developed by Agemo will help reduce the costs typically associated with early-stage development by allowing teams to independently build basic prototypes or MVPs (minimum viable products). Companies can refine their products as much as necessary before engaging with software developers.”
Look mom, no code
The race to automate software development has taken a new turn when British startup Agemo recently unveiled an AI system that thinks through programs like human engineers do.
Unlike today’s AI coding assistants, which primarily complete code snippets, Agemo’s technology thinks about entire systems and handles everything from initial design to final implementation. The company, backed by the CEO of cloud monitoring company Datadog and executives from DeepMind, is making an effort to let non-technical users build advanced software by simply describing what they want — though for now it’s limited to creating backend systems.
Agemo joins a growing list of AI-powered software development tools that are reshaping coding and project management, automating complex tasks and accelerating development cycles. Other examples include GitHub Copilot, which helps developers by suggesting code additions, and Tabnine, which uses generative AI to provide line-wide and feature-level code predictions, increasing productivity and reducing debug time.
The rise of AI-powered software development could change the way companies invest in technology, allowing small vendors to quickly build custom apps instead of relying on expensive off-the-shelf solutions or third-party developers. This shift can reduce enterprise IT budgets as departments bypass traditional development cycles.
However, it raises concerns about system security and reliability when allowing non-technical personnel to generate their programs. From convenience stores to Fortune 500 companies, companies may soon have to choose between maintaining traditional development practices or embracing AI tools that promise faster deployment but require rethinking how organizations manage their software creation.
Less work for developers?
Elvis Sun, a Google software engineer and founder of PressPulse, told PYMNTS that AI-driven development tools are reshaping commerce by letting non-technical business teams build their own applications through simple interfaces instead of relying on scarce developer talent .
He said the shift could dramatically reduce companies’ IT and training costs because employees can now specify in plain language what they want their software to do, allowing AI models to handle the complex coding work.
Sun said he has seen firsthand how this technology democratizes software creation, allowing companies to quickly implement custom solutions without the traditional overhead of extensive programming knowledge or dedicated development teams.
“As the technical barriers to creating software continue to decrease, I think we will see the development services market evolve in interesting ways,” he added. “Instead of relying solely on traditional software developers and IT consultants, companies can adopt new service models focused on providing support and maintenance for user-generated applications.”
In the future, AI will take care of basic coding, allowing tech experts to focus on building more advanced AI systems, Sean Ren, associate professor at the University of Southern California and CEO of Sahara AI, told PYMNTS.
“Rather than just building tools, developers can now drive innovation by improving AI capabilities and creating adaptive, intelligent platforms,” he said. “In the meantime, IT consultants can focus on helping companies integrate AI tools in a way that aligns with long-term goals. These roles will provide essential expertise, allowing companies to maximize the value of AI and continue to innovate effectively.”
