Companies will soon develop software without engineers, warns Replit CEO

In May 2025, during a Semafor Tech event in San Francisco, Amjad Masad, the CEO of the AI coding startup Replit, spoke about the evolving landscape of software development. He indicated that numerous startups, particularly those affiliated with Y Combinator, have begun to utilize AI-powered tools like Replit in place of traditional software engineering roles. Masad noted that some founders originally anticipated needing a chief technology officer (CTO) but found that they could create a significant portion of their products through these AI tools without hiring developers. This approach is particularly appealing as it allows startups to conserve resources while still innovating. Masad acknowledged that while the full integration of AI tools into the development process is not yet complete, the transition is rapidly approaching. He suggested that within the next year to 18 months, it might be feasible for companies to operate without engineering teams entirely. This perspective has sparked concern among existing software developers, especially junior engineers, about potential job displacement due to automation in coding tasks. Industry experts, like Garry Tan, the CEO of Y Combinator, have indicated that a notable percentage of startups in recent classes have already begun generating a majority of their code using AI tools. The rise of AI in coding capabilities illustrates a broader trend within the technology sector, emphasizing the need for adaptation in a rapidly changing digital landscape. Industry leaders have commented on the importance of trusting the potential of emerging technologies to foster high-growth startups. Investors are encouraged to embrace these new developments, even in their nascent forms, to avoid missing out on critical industry shifts that may redefine the startup ecosystem. Furthermore, the implications extend beyond software development alone; fields such as drug discovery are also leveraging AI, leading proponents to believe that advancements in this technology will ultimately yield more accurate and effective therapeutic solutions. This transformative phase is indicative of a significant shift in how businesses operate and develop products, marking an era where traditional roles may become increasingly obsolete.