In a significant shift within the software development landscape, Emergent Labs co-founder Mukund Jha emphasizes the transformative potential of “vibe coding,” a term popularized by AI researcher Andrej Karpathy in February 2022. Jha notes that we have officially entered the age of AI-built software, with rapidly evolving AI tools empowering individuals, regardless of coding experience, to take software projects from concept to production-ready solutions.
The implications are profound, as an estimated 41% of global code is now AI-generated. While much of the conversation has centered on the speed and reduced costs of software development, Jha contends that the true disruption lies in how vibe coding is redefining the sources of software value. In this new era, creativity and curation become paramount, overshadowing traditional metrics of productivity such as sheer code output.
“Human taste is now one of the most important tools in a software engineer’s arsenal,” Jha remarked, highlighting a shift where software engineering increasingly intersects with creative and strategic input rather than technical labor alone.
As companies and individuals become capable of generating code quickly and affordably, the competitive advantage is likely to transition from mere code creation to how effectively software integrates into existing workflows. Jha predicts that as software abundance becomes a reality, the emphasis will shift toward the alignment of applications with user needs and business outcomes.
This transition signals a post-scarcity era in software development, where the focus moves from producing software to integrating it seamlessly into operational frameworks. Composability, or the ability for software components to work together, will take precedence over traditional complexity. Users are expected to gravitate toward modular tools that can easily plug into their established systems and adapt over time. In this environment, structured marketplaces and internal catalogs that rank tools based on metrics like accuracy and return on investment will become increasingly valuable.
Furthermore, Jha notes a critical shift in licensing models, particularly in enterprise settings, moving away from seat-based pricing towards usage-based models that prioritize delivered value. This paradigm change could redefine how companies approach software procurement and development.
The widespread adoption of vibe coding spans from individual entrepreneurs to major corporations, with 87% of Fortune 500 companies reportedly employing it in some form. Garry Tan, president and CEO of Y Combinator, has stated, “This isn’t a fad. This isn’t going away… If you’re not doing it, you might just be left behind.” His comments reflect the strong uptake of vibe coding within Y Combinator’s community, where 25% of startups in the Winter 2025 cohort reported having codebases that were 95% AI-generated.
While some industry observers speculate that vibe coding may signal the end of traditional software engineering, Jha argues that it will instead reshape the role of developers. The value in this new landscape is not in cost or speed but in resolving domain-specific challenges more effectively. For instance, a sales team struggling with client onboarding can now leverage vibe coding to build tailored solutions directly, allowing individuals closer to the problem to create the most relevant tools.
This evolution is giving rise to a new class of “citizen developers.” Non-developers who previously struggled with the gap between their ideas and technical know-how can now engage with software development directly. With vibe coding platforms, these individuals can craft bespoke applications without requiring extensive programming skills. A user in Germany, for instance, successfully created an AI-powered system to automate marketing workflows, while another consultant in London built multiple applications to streamline his processes.
As this trend continues, virtually every company may see the emergence of citizen developers who can address specific issues promptly, leveraging their unique insights and expertise. This democratization of software development signifies a departure from a model solely defined by coding proficiency.
Looking ahead, the landscape of software engineering is poised for dramatic change. With vibe coding erasing barriers between technical execution and creative vision, the ability to conceptualize new applications and enhance user experience will become crucial. The future may see a shift toward software that not only functions well but also reflects a distinct creative vision, further blurring the lines between developer and user.
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