AI Agents Are Reshaping How Software Gets Built
AI agents are automating complex software development tasks that once required large teams, according to Ted Mortonson, Managing Director of Technology at Baird. In a recent Bloomberg Radio interview, Mortonson said the shift represents a fundamental change in how code is written, tested, and deployed-not a gradual improvement, but a structural break from how the industry has operated.
"You can now do things with one or two people where you used to do with 20," Mortonson said.
Productivity gains are arriving faster than past tech shifts
Mortonson drew comparisons to previous technological revolutions, including the internet boom of the late 1990s and early 2000s. The current AI wave moves differently and carries broader implications. He emphasized that AI's pace and scope exceed what the industry saw during those earlier cycles.
Developers can now focus on higher-level strategic work while AI handles routine coding, testing, and deployment processes. This efficiency gain will reshape workforce requirements across the industry.
The workforce will see significant change
Mortonson expects "massive productivity gains" that will alter how work gets done structurally. Some roles will disappear while new ones emerge. The ability to accomplish with a handful of people what previously required dozens signals a fundamental reset in team composition and skill requirements.
He noted that even in hardware-intensive environments like military operations-where logistical constraints typically limit adoption-AI integration is moving faster than expected. The same efficiency principles apply across sectors.
What this means for development teams
Organizations investing in AI adoption now gain competitive advantages in speed and cost. Developers who understand how to work alongside AI agents will find themselves in stronger positions than those who don't.
For IT professionals, the shift demands new skills. AI for Software Developers covers practical applications in coding automation and productivity. Those interested in the technical mechanics can explore AI Coding Courses that address how AI handles development tasks.
The structural change is already underway. Teams that adapt will operate more efficiently. Those that don't will fall behind.
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