Is AI-driven software development the future of business or justa shortcut to mediocrity?

What is AI-driven development?

This isn’t just junior developers using ChatGPT or Claude to write and debug their code. We’re talking about an entire class of platforms enabling non-technical users to build apps, automate workflows, and generate business logic without deep engineering know-how. AI isn’t just assisting developers; it’s redefining who gets to develop systems in the first place.

For technology leaders, this presents a strategic advantage and risk. While democratising development can accelerate delivery, it also opens the door to inconsistent standards, architectural debt, and over-reliance on tools that few stakeholders fully understand.

So who’s actually winning with these tools?

Startups use AI to get to market quicker. There’s even a whole new sub-genre of business models
that are entirely made up of automated AI agents. Enterprises aim to optimise and scale operations with fewer people. Business units can now bypass IT altogether, building their own solutions with minimal oversight.

But here’s the hard truth: Quick wins today can become liabilities tomorrow, especially when the original builder is no longer around to explain how the app works or why it was built that way.

Governance must catch up—now

MBIE’s AI strategy for New Zealand takes a high-level approach to AI governance within organisations. It calls for embedding governance and accountability structures, carrying out stakeholder impact assessments, managing ethical and legal risks, and integrating oversight
throughout the AI lifecycle.

In reality, most organisations are behind on this. However, AI-assisted development is happening even if policies aren’t ready. So it’s up to organisational leaders to set some guardrails and answer some tough questions:

Who in the organisation is building AI-generated workflows, what for, and with what tools?

Do you have a central team or department that has oversight on this mechanism?

How do you go about auditing those workflows?

Are your internal standards enforceable?

Where does New Zealand SMEs stand?

Small businesses in New Zealand are incredibly resilient. It’s no surprise then that so many innovative explorations of AI-generated workflows come from these SMEs. But adoption remains patchy and experimental. While this is a challenge for the SME economy, it’s an opportunity for larger organisations to lead with long-term strategy.

The final word: It’s not just about what kind of tech businesses should
adopt

It’s about how businesses future-proof their operations. AI can accelerate development, but acceleration without direction leads nowhere fast.

Join our roundtable discussion to hear from peers navigating this space and share your thoughts on balancing innovation with responsibility and building AI strategies that scale.

Is AI-driven software development the future of business or justa shortcut to mediocrity?

19Aug

19 August 2025