Navigating the AI Coding Revolution: Unveiling Specification-Driven Development
The emergence of Specification-Driven Development (SDD) is reshaping how we view AI in coding. While companies like Tessl and Cursor garner astounding valuations, reality checks reveal deeper truths.
Key Insights:
- Valuation Discrepancies: AI coding companies achieve 25-70x ARR, far exceeding past tech bubbles.
- 70% Automation Myth: The widely cited McKinsey statistic misrepresents actual AI efficiency, with developers taking longer despite believing they’re faster.
- Real Impact: 84% of developers leverage AI tools, yet complex tasks still demand human intervention.
Why SDD Matters:
- It serves as both a necessary framework and a narrative device, providing orderly documentation and addressing AI errors.
- The shift towards structured coding is essential as we confront the unpredictable nature of AI outputs.
As we look forward, expect to see significant correction in this space. Companies with genuine ROI will endure while many face reckoning.
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