Clayton Pilat
Head of AI, ANZ
AI
Summary:
Many organizations are quick to blame technological immaturity when agentic AI pilots stall. In practice, the issue is rarely timing, it is where these initiatives start.
The strongest outcomes are emerging in the Software Development Lifecycle (SDLC). Not because engineering is special, but because it is already structured, observable and governed. That gives agents a controlled environment to operate in; one where context is clear, actions are bounded and outcomes can be measured without introducing unnecessary risk.
Most organizations have prioritized customer-facing use cases; chatbots, document analysis and communications. These are often favourable because they are visible to the client and easy to understand from a CEO-level perspective.
In less-regulated industries, some variability in outputs can be tolerated. But, for firms operating under tighter controls, the probabilistic behaviors of agentic AI come at a much higher cost. Mis-selling, poor complaint handling or inappropriate data exposure are not edge cases; they are material risks.
In many instances, the underlying problem is simpler than it appears. What is framed as an “agentic AI opportunity” is often straightforward automation. Conventional Robotic Process Automation (RPA), Business Process Management (BPM) and other approaches remain far simpler, cheaper, lower risk and more performant at achieving automation than using an agent.
There will, of course, be meaningful business use cases for agents. But for most organizations, they will take longer to realize and carry higher risk compared to SDLC-led adoption.
LLMs are, at their core, very good at language generation. Code happens to be a highly structured language, with clear syntax, strong patterns and an enormous amount of publicly available training data.
Unlike many business processes, code is functional and instructional. You tell it what to do, it either works, or it does not.
This makes it unusually deterministic compared to other AI use cases. Static code deployed into production does not improvise. It behaves the same way every time unless a human or an agent changes it.
That predictability matters.
It allows enterprises to experiment with agents while still fitting comfortably inside existing SDLC controls such as pull requests, testing, approval gates and production release processes. You are not reinventing governance. You are augmenting it.
The productivity impact of agents in the SDLC is hard to ignore. Agents can remove hours of low value effort across:
The best products in the space have converged here for a reason. Code is where you get fast feedback and visible gains. Engineers notice time savings quickly, and leaders can tie those savings back to delivery metrics.
There is also a less discussed benefit.
Most engineers are not great at written communication. Design docs, PR descriptions, user stories and runbooks are pain points. LLMs quietly improve this across the board, which has second order effects on collaboration, onboarding and support.
This is why SDLC-focused adoption lands well. It improves both how code is built, and how teams work.
As agents stretch across coding, testing, documentation and operations, traditional role boundaries begin to blur.
The shift toward full-cycle engineering is already underway. Full-cycle engineers own the full SDLC of their product, thereby reducing feedback loops and incentivizing them to build reliable code.
One large bank has collapsed their job family roles down to product owners and software engineers. Traditional boundaries between product management, business analysis, quality assurance and support still exist, but they are thinner. Much of the mechanical work those roles once owned is either automated or heavily augmented by agents.
This does not remove the need for people. It changes the skills that matter.
Engineers now need to be systems thinkers, reviewers and orchestrators. They need to understand APIs, workflows and failure modes more than they need to memorize syntax. The value shifts from writing code to shaping behavior.
Agentic AI is proving its value fastest in the SDLC because it fits the way software is already built; structured, controlled and measurable.
It delivers clear returns without forcing organizations to rethink their operating model from the ground up.