AI, Paradigm Shifts, and the Future of Building Companies

Over the past few months, I have been constantly reading conversations about how Generative AI will reshape software engineering. On LinkedIn, Twitter, or in closed professional groups, engineers and product leaders debate how tools like Cursor, GitHub Copilot, or automated testing frameworks will impact the way software is built and teams are organized.

But the conversation goes beyond just engineering practices. If we zoom out, AI will not only transform the workflows of software teams but also the structure of companies and even the financial models on which they are built. This kind of change feels familiar – it echoes a deeper historical pattern in how science and technology evolve.

Kuhn’s Cycle of Scientific Revolutions

During my bachelor’s, I read Thomas Kuhn’s The Structure of Scientific Revolutions. Kuhn argued that science does not progress in a linear, step-by-step manner. Instead, it moves through cycles of stability and disruption. The Kuhn Cycle1, as reframed by later scholars, breaks this process into several stages:

  1. Pre-science – A field without consensus; multiple competing ideas.
  2. Normal Science – A dominant paradigm sets the rules of the game, guiding how problems are solved.
  3. Model Drift – Anomalies accumulate, and cracks in the model appear.
  4. Model Crisis – The old framework fails; confidence collapses.
  5. Model Revolution – New models emerge, challenging the old order.
  6. Paradigm Change – A new model wins acceptance and becomes the new normal.

The Kuhn Cycle Applied to Software Development

Normal Science

For decades, software engineering has operated under a shared set of practices and beliefs:

  • Clean Code & Best Practices – DRY, SOLID, Unit Testing, Peer Reviews.
  • Agile & Scrum – Iterative sprints and ceremonies as the “right” way to build products.
  • DevOps & CI/CD – Automation of builds, deployments, and testing.
  • Organizational Structure – Specialized roles (frontend, backend, QA, DevOps, PM) and a belief that more engineers equals more output.

The underlying assumption is hire more engineers + refine practices → better and quicker software.


Model Drift

Over time, cracks began to show.

  • The talent gap – demand for software far outstrips available developers.
  • Velocity mismatch – Agile rituals can’t keep pace with market demands.
  • Complexity overload – Microservices and massive codebases create systems that are too complex for a single person to comprehend fully.
  • Knowledge silos – onboarding takes months, and institutional knowledge remains fragile.

These anomalies signaled that “hire more engineers and improve processes” was no longer a sustainable model.


Model Crisis

The strain became obvious:

  • Even tech giants with thousands of engineers struggle with code sprawl and coordination overhead.
  • Brooks’ Law bites – adding more people to a project often makes it slower.
  • Business pressure grows – leaders demand faster iteration, lower costs, and higher adaptability than human-only teams can deliver.
  • Early AI tools, such as GitHub Copilot and ChatGPT, reveal something provocative – machines can generate boilerplate, tests, and documentation in seconds – tasks once thought to be unavoidably human.

This is where many organizations sit today – patching the old paradigm with AI, but without a coherent new model.


Model Revolution

A new way of working begins to take shape. Here are some already visible in experimenting, we can all see around us –

  • AI-first engineering – using AI agents for scaffolding code, generating tests, or refactoring large systems. Humans act as curators, reviewers, and high-level designers.
  • Smaller, AI-augmented teams
  • New roles and workflows – QA shifts toward system-level validation; PMs focus less on ticket grooming and more on problem framing and prompting.
  • Org structures evolve – less siloing by specialization, more “AI-augmented full-stack builders.”
  • Economics shift – productivity is no longer headcount-driven but iteration-driven. Cost models change when iteration is nearly free.

Paradigm Change

In the coming years, some of the ideas above, and probably additional ideals, could stabilize as the “normal science” of software development and organizational building. But we are not yet there. Once we get there, today’s experiments will feel as obvious as Agile sprints or pull requests do now.


We are in the midst of model drift tipping into crisis, with glimpses of revolution already underway. Kuhn’s lesson is that revolutions are not just about better tools – they’re about shifts in worldview. For AI, the shift might be that companies will no longer be limited by headcount and manual processes but by their ability to ask the right questions, frame the correct problems, and adapt their models of value creation.

We are moving toward a future where the shape of companies, not just their software stacks, will look radically different, and that’s an exciting era to be a part of.

  1. https://www.thwink.org/sustain/glossary/KuhnCycle.htm ↩︎

LLM Debt: The Double-Edged Sword of AI Integration

Have you noticed how half the posts on LinkedIn these days feel like they were written by an LLM – too many words for too little substance? Or how product roadmaps suddenly include “AI features” that nobody asked for, just because it sounds good in a pitch deck? Or those meetings where someone suggests “let’s use GPT for this,” when a simple SQL query, an if-statement, or a much simpler ML model would do the job?

Laurence Tratt recently coined the term LLM inflation to describe how humans use LLMs to expand simple ideas into verbose prose, only for others to shrink them back down. That concept got me thinking about a related phenomenon: LLM debt.

LLM debt is the growing cost of misusing LLMs — by adding them where they don’t belong and neglecting them where they could help.

We’re all familiar with technical debt, product debt, and design debt1 — the shortcuts or missed opportunities that slow us down over time. Similarly, organizations are quietly accumulating LLM debt.

So, what does LLM debt look like in practice? It’s a double-edged liability:

  • Overuse: Integrating LLMs where they’re unnecessary adds latency, complexity, cost, and stochasticity to systems that could be simpler, faster, and more reliable without them. For example, sending every API request through a multimillion-parameter model when a simple regex or deterministic logic would suffice.
  • Underuse: Failing to adopt LLM-based tools where they could genuinely help results in wasted effort and missed opportunities. Think of teams manually triaging support tickets, writing repetitive documentation, or analyzing text data by hand when an LLM could automate much of the work.

Like product or technical debt, a small amount of LLM debt can be strategic: it allows experimentation, faster prototyping, or proof-of-concept development. However, left unmanaged, it compounds, creating systems that are over-engineered in some areas and under-leveraged in others, which slows product evolution and innovation. Same as other types of debt, it should be owned and managed.

LLMs are powerful, but they come with costs. Just as we track and manage technical debt, we need to recognize, measure, and pay down our LLM debt. That means asking tough questions before adding LLMs to the stack, and also being bold enough to leverage them where they could provide real value.

If LLM inflation showed us how words can expand and collapse in unhelpful cycles, LLM debt shows us how our systems can quietly accumulate inefficiencies that slow us down. Recognizing it early is the key to keeping our products lean, intelligent, and future-ready.

  1. I previously wrote about some of those topics here and talked about them in Hebrew here ↩︎

AWS has entered the building

AWS has released several notable announcements within the LLM ecosystem over the last few days.

Introducing Amazon S3 Vectors (preview) – Amazon S3 Vectors is a durable, cost-efficient vector storage solution that natively supports large-scale AI-ready data with subsecond query performance, reducing storage and query costs by up to 90%.

Why I find it interesting –

  1. Balancing cost and performance – i.e., storing on a database is more expensive but yields better results. If you know what the “hot vectors” are, you can store them in the database and store the rest in S3.
  2. Designated buckets – it started with table buckets and has now evolved to vector buckets. Interesting direction.

Launch of Kiro – the IDE market is on fire with OpenAI’s acquisition falling apart, Claude code and cursor competition, and now Amazon reveals Kiro with the promise – “helps you do your best work by bringing structure to AI coding with spec-driven development”

Why I find it interesting –

  1. At first, I wondered why AWS entered this field, but I assume it is a must-have these days, and might lead to higher adoption of their models or Amazon Q.
  2. The different IDEs and CLI tools are influenced by each other so it will be interesting to see how a new player influences this space.

Strand agents are now at v1.0.0 – Strand Agents are an AWS open-source SDK that enables building and running AI agents across multiple environments and models, with many pre-built tools that are easy to use.

Why I find it interesting –

  1. The bedrock agents interface was limiting for a production-grade agent, specifically in terms of deployment modes, model support, and observability. Strand agents open many more doors.
  2. There are many agent frameworks out there (probably two more were released while you read this post). Many of them experience different issues when working with AWS Bedrock. If you are using AWS as your primary cloud provider, it should be a leading candidate.

5 interesting things (11/05/2025)

Agents app design pattern – this is a back-to-basics adaptation. How would we read this 14 years from now? Would the ideas he mentioned there be a standard?

https://github.com/humanlayer/12-factor-agents

The original document “12 factors app” is also worth reading (note that it was first published 2011+-) –

https://12factor.net

When the Agents Go Marching In: Five Design Paradigms Reshaping Our Digital Future

This post complements the previous one, covering the same topics. If you are in a hurry, jump to the “The Reinvention of UX: Five Emerging Paradigms” section. I feel that I cope with all those aspects, e.g., building trust, transparency, cognitive load distribution, etc., on a daily basis.

https://medium.com/cyberark-engineering/when-the-agents-go-marching-in-five-design-paradigms-reshaping-our-digital-future-a219009db198

Using Alembic to create and seed a database

Seeding a database is essential for testing, development, and ensuring consistent application behavior across different environments. Alembic is a lightweight database migration tool for Python, designed to work seamlessly with SQLAlchemy.

We use Alembic to manage our database migrations, and I recently needed to seed our database for consistency across environments. I looked for several solutions and eventually used the solution in this post to create a migration that seeds the database –

https://medium.com/@fimd/using-alembic-to-create-and-seed-a-database-8f498638c406

A Field Guide to Rapidly Improving AI Products – while this post focuses on AI products, specifically ones LLM-based, multiple lessons can also be adapted to non-LLM-based AI products and general products. Conducting an error analysis, generating synthetic data (preferably with domain express), and using a data viewer are good starting points.

https://hamel.dev/blog/posts/field-guide/

I Tried Running an MCP Server on AWS Lambda… Here’s What Happened – this post involves two topics I think a lot about these days – MCP and serverless computing. I think it is clear why I think a lot about MCPs. But why do I think about serverless computing? I think of it as a low-cost solution for early-stage startups. Early-stage startups usually have low traffic, which does not justify the cost of having servers up 24/7. On the other hand, the serverless development experience still needs some refinement, and there are services that one would like to host that do not support running in a serverless manner.

https://www.ranthebuilder.cloud/post/mcp-server-on-aws-lambda

5 interesting thing (28/03/2025)

PgAI – LLMs have been part of everyday life already for a while. One aspect I think has not been explored well so far is using them as part of ETL. The implementations I have seen so far don’t take advantage of batch APIs and are not standardized to enable the easy replacement of a model. Having said that, I believe those hurdles will be overcome soon.

https://github.com/timescale/pgai

Related links

Life Altering PostgreSql Patterns – a back-to-basics post. I agree with most of the points mentioned there, specifically around adding creaetd_at, updated_at, and deleted_at attributes to all tables and saving state data as logs rather than saving only the latest state. I found the section about enum tables interesting. This is the first time I was exposed to this idea, and the ability to add a description or metadata is excellent.

https://mccue.dev/pages/3-11-25-life-altering-postgresql-patterns

Via this post, I learned about the on update cascade option, you can read more about it here – https://medium.com/geoblinktech/postgresql-foreign-keys-with-condition-on-update-cascade-330e1b25b6e5

AI interfaces of the future – I usually don’t share videos, but I think this talk is thought-provoking for several reasons –

  • Gen UI patterns – an emerging field, the talk reviews several products and highlights good and destructive patterns. Some of the patterns, like suggestions or auto-complete, are transparent to us but are present in many products we know, and that’s something important to notice when you build such a product.
  • Product review: Knowing what is out there is good for inspiration, ideas, and understanding the competitive landscape. However, new products are coming out every day, and it is hard to track all of them.

Simplify Your Tech Stack: Use PostgreSQL for Everything – Two widespread tensions, especially in startups, are build vs. buy conflicts and using specialized products or technologies (e.g., different databases) that are top of the breed but not many people can use and maintain vs. more common technology that more people can maintain but can have performance drawbacks or other limitations. Mainly working in startups, I usually prefer to use standard technology to run faster, knowing that the product, focus, and priorities often change. With that being said, I acknowledge that early adoption of new technologies can be life-changing for a startup, but figuring out what to bet on is hard.

https://medium.com/timescale/simplify-your-tech-stack-use-postgresql-for-everything-f77c96026595

CDK Monitoring Constructs – if you are using AWS CDK as your IAC tool, CDK monitoring constructs enable you to create cloudwatch alarms and dashboards almost out of the box. I wish they would release and add additional options at a faster pace.

https://pypi.org/project/cdk-monitoring-constructs/

5 interesting things (31/05/2024)

How we built Text-to-SQL at Pinterest – Text-to-SQL and vice versa became one of the canonical examples of LLM, and every product needs one. The post described a very interesting work that can be implemented relatively easily. I relate the most to the closing paragraph, which emphasizes the gap between demos, tutorials, benchmarks, and real-world use cases. – “It would be helpful for applied researchers to produce more realistic benchmarks which include a larger amount of denormalized tables and treat table search as a core part of the problem.”

https://medium.com/pinterest-engineering/how-we-built-text-to-sql-at-pinterest-30bad30dabff

(p.s I mentioned post in a recent LinkedIn post – LLMs in the enterprise – looking beyond the hype on what’s possible today)

How an empty S3 bucket can make your AWS bill explode – this story completely blew my mind (and gladly not my account). I was happy to see that AWS is looking into this issue and wondered if in bigger accounts, such anomalies could get unnoticed.

https://medium.com/@maciej.pocwierz/how-an-empty-s3-bucket-can-make-your-aws-bill-explode-934a383cb8b1

The Design Philosophy of Great Tables –  great_tables is a Python package for creating wonderful-looking tables. This post shares its visual design philosophy and is worth reading if you create tables even if you will not use this package.

https://posit-dev.github.io/great-tables/blog/design-philosophy/

1-measure-3-1 – a variation of the 1-3-1 problem-solving method for making proposals. I found it specifically effective for engineers as it is structured and focused.

https://www.annashipman.co.uk/jfdi/1-measure-3-1.html

On Making Mistakes — I love it when people combine experience or knowledge in one field or domain with another. For example, someone brings her experience as a soccer player to managing a team, or someone uses lessons he learned as a supermarket cashier to software architecture. This post discusses making mistakes and working through them and refers to several domains, including improv, chess, and F1 team management.

https://read.perspectiveship.com/p/on-making-mistakes

5 interesting things (08/03/2024)

(Almost) Every infrastructure decision I endorse or regret after 4 years running infrastructure at a startup – in my current role as a CTO of an early-stage startup, I make many choices about tools, programming languages, architecture, vendors, etc. This retrospective view was fascinating not only for the tools themselves but also for the arguments.

https://cep.dev/posts/every-infrastructure-decision-i-endorse-or-regret-after-4-years-running-infrastructure-at-a-startup/

Everything You Can Do with Python’s textwrap Module – I have used Python for more than 10 years and never heard of textwrap model. Maybe you, too, haven’t heard of it.

https://towardsdatascience.com/everything-you-can-do-with-pythons-textwrap-module-0d82c377a4c8

It was never about LLM performance – I couldn’t agree more. The performance gaps between different LLMs are becoming neglectable. Now, it is about the experience you build using those models and the guardrails you put in to ensure the experience.

https://read.technically.dev/p/it-was-never-about-llm-performance

How to build an enterprise LLM application: Lessons from GitHub Copilot – the post ends with a summary of 3 key takeaways – 

  • Identify a focused problem and thoughtfully discern an AI’s use cases.
  • Integrate experimentation and tight feedback loops into the design process
  • As you scale, continue to leverage user feedback and prioritize user needs

Those takeaways are general and correct for almost every product launch I can think of. The post provides more concrete tips for LLM applications. It is interesting to read about a product on such a scale that I use it on a daily basis.

https://github.blog/2023-09-06-how-to-build-an-enterprise-llm-application-lessons-from-github-copilot/

Speaking for Hackers – public speaking is hard. From choosing a topic, submitting a CFP, preparing your talk and slides, and wrapping it all up. Every step can be tricky, and each of us has other things that are harder for us. This site provides excellent materials for all the parts before, during, and after the talk, making it easier to step out of our shells and share the knowledge.

https://sfhbook.netlify.app/

5 interesting things (15/01/2024)

SQL as API – I saw several efforts to expose RDBMS as API over the years. This post suggests another engel – exposing an API that accepts SQL. Consider this a brain teaser.

https://valentin.willscher.de/posts/sql-api/

SomeEstimates –  For me, the loss of trust described in the post is the most harassing implication of a culture where estimates are often missed –

“Another negative outcome is a loss of trust between developers and management since a constant sense of urgency is tantamount to no sense of urgency at all.”

https://www.shaiyallin.com/post/someestimates

How to Make Anthropic’s Claude Models Consistently Generate Valid JSON – Gettign valid and consistent JSON from LLM is an issue. Prompt engineering, as described in this post, can solve some of those issues; the json_repair package mentioned there can solve additional problems. With the GPT store announced this week and the evolving models, I believe this will be solved soon in one way or another.

https://levelup.gitconnected.com/how-to-make-anthropics-claude-models-consistently-generate-valid-json-d74ce037ca46

Bonus – https://github.com/mangiucugna/json_repair

My PostgreSQL wishlist – Another brain teaser. The items I most relate to are having created_at and updated_at columns created and maintained automatically and being immutable. I’m curious to follow the comments on this post.

https://ryanguill.com/postgresql/sql/2024/01/08/postgresql-wishlist.html

Everyday storytelling for engineers. The CAO Method – Although storytelling has become an overused buzzword in the last few years (I thought it was already over the hill). This post is important not due to the specific method but to the recognition that ICs practice storytelling every day, and mastering this skill can affect your promotion, career path, tasks you get, etc. 

https://tonyfreed.substack.com/p/everyday-storytelling-for-engineers