AI's impact on coding is unfolding in stages. Phase 1 was autocomplete (Copilot). We're now in Phase 2, defined by interactive agents where developers orchestrate tasks with prompts. Phase 3 will be true automation, where agents independently handle complete, albeit simpler, development workflows without direct human guidance.

Tools like Git were designed for human-paced development. AI agents, which can make thousands of changes in parallel, require a new infrastructure layer—real-time repositories, coordination mechanisms, and shared memory—that traditional systems cannot support.

Structure your development workflow to leverage the AI agent as a parallel processor. While you focus on a hands-on coding task in the main editor window, delegate a separate, non-blocking task (like scaffolding a new route) to the agent in a side panel, allowing it to "cook in the background."

Despite the rise of terminal-based AI, IDEs remain essential because source code is meant for human consumption. Visual interfaces are the best way for developers to review, understand, and build context around what AI agents produce, preventing the 'death of the IDE'.

The primary interface for managing AI agents won't be simple chat, but sophisticated IDE-like environments for all knowledge workers. This paradigm of "macro delegation, micro-steering" will create new software categories like the "accountant IDE" or "lawyer IDE" for orchestrating complex AI work.

Factory frames the AI coding landscape using the Henry Ford analogy. AI assistants that simply speed up line-by-line coding are merely 'faster horses.' The true paradigm shift—the 'automobile'—is delegating entire tasks to autonomous agents, fundamentally changing the developer workflow.

The evolution from AI autocomplete to chat is reaching its next phase: parallel agents. Replit's CEO Amjad Masad argues the next major productivity gain will come not from a single, better agent, but from environments where a developer manages tens of agents working simultaneously on different features.

The ideal AI-powered engineering workflow isn't just one tool, but a fluid cycle. It involves synchronous collaboration with an AI for planning and review, then handing off to an asynchronous agent for implementation and testing, before returning to synchronous mode for the next phase.

Cursor's founder predicts AI developer tools will bifurcate into two modes: a fast, "in-the-loop" copilot for pair programming, and a slower, asynchronous "agent" that completes entire tasks with perfect accuracy. This requires building products optimized for both speed and correctness.