Factory CEO on the Future of Work, Humans vs Agents, Future of SaaS, and more!

Matan, CEO of Factory, envisions a future of software development where AI agents work in parallel to handle coding tasks, allowing human engineers to focus on systems thinking and task decomposition, thereby dramatically increasing efficiency and scalability. Factory’s platform integrates deeply with existing tools and uses advanced memory systems to enable autonomous, high-quality AI-driven software creation, making complex and specialized software development faster, more accessible, and cost-effective.

In this insightful discussion, Matan, the CEO of Factory, shares his vision for the future of software engineering, emphasizing a transformative shift from traditional Integrated Development Environments (IDEs) to an agent-native approach. Drawing from his background in theoretical physics and AI research, Matan explains how Factory is designed not just as a faster IDE but as a fundamentally new platform where developers delegate tasks to multiple AI agents working in parallel. This paradigm shift allows for exponential efficiency gains, enabling complex software problems to be broken down into discrete, verifiable steps that agents can execute simultaneously, vastly accelerating development timelines.

Matan highlights the importance of systems thinking as the critical skill for future developers. While AI agents will handle the bulk of coding, human engineers will focus on decomposing large tasks into manageable components and defining clear validation criteria. This shift means that coding itself may become less central, but understanding the architecture and constraints of software systems remains vital. Matan and the interviewer agree that learning to code is still valuable, not just for writing code but for developing the systems thinking necessary to orchestrate AI agents effectively and ensure high-quality software outcomes.

The conversation also touches on the evolving nature of intelligence in AI, particularly the ability of large language models (LLMs) to generate code as a form of reasoning and problem-solving. Matan argues that coding ability is a core indicator of intelligence in these models, as it requires logical thinking and generalization beyond mere memorization. This capability positions AI as a powerful tool for tackling increasingly complex and large-scale software challenges that would be impossible for human engineers alone to solve.

Looking ahead, Matan envisions a future where software development becomes dramatically more efficient and scalable. Problems that once required thousands of engineers over many years could be addressed by small teams leveraging armies of AI agents. This will not only reduce the cost and time to build software but also expand the range of addressable problems, including niche and highly specialized issues that were previously economically unfeasible to solve. The result is a more dynamic and innovative software landscape, where both large enterprises and non-technical companies can build custom solutions rapidly and cost-effectively.

Finally, Matan discusses Factory’s unique technical approach, which includes deep first-party integrations with tools like GitHub and Jira, sophisticated memory systems that learn organizational and individual coding patterns, and the ability to execute code both locally and remotely. These features enable Factory’s AI agents to understand complex codebases, maintain consistency, and verify their work autonomously. Looking forward, Factory aims to make AI-driven software development accessible and reliable for all developers, promising a future where even those skeptical of AI will experience its transformative benefits firsthand.