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AI-driven Software Development: A Pragmatic Path to Agentic Development Processes

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software engineering, software architecture, testing

AI-driven Software Development: A Pragmatic Path to Agentic Development Processes

arXiv:2606.15283v1 [cs.SE] 13 Jun 2026

Peter Mandl Munich University of Applied Sciences Munich, Germany [email protected]

Paul Mandl Findustrial GmbH Schörfling am Attersee, Austria [email protected]

Abstract Generative AI is increasingly transforming software development from localized tool support into a form of development work that is more deeply embedded in processes, tools, and organizational structures. Its use is no longer limited to code completion, but affects requirements, architecture, implementation, testing, review, operations, and maintenance. Existing research presents a differentiated picture. Productivity gains are possible, but depend strongly on factors such as task type, codebase characteristics, and developers’ level of experience. At the same time, AI-generated artifacts require additional control and governance mechanisms. Building on these observations, this paper develops a pragmatic organizing framework for the transition toward AI-driven Software Development. The framework describes the progression from informal and assistive AI use through integrated AI workflows toward controlled agentic development processes. The focus is not on evaluating individual tools or models, but on how AI can be embedded technically, organizationally, and through quality assurance across central software engineering activities. Particular importance is assigned to the development of a harness that connects project context, tool access, verification mechanisms, permissions, logging, and human approval. The paper draws on current research literature, practice-oriented sources, established software engineering practices, and project experience. To substantiate the framework, a mid-sized software company is used as an exploratory case study. The case study serves to assess the plausibility of the proposed organizing framework and shows how technical prerequisites, governance requirements, design practices, and transformation paths can be shaped in a concrete organizational context. The paper thereby provides a conceptual basis for further scholarly discussion and empirical investigation of AI-driven Software Development.

Keywords: AI-driven Software Development, Large Language Models, Software Engineering, Requirements Engineering, Software Testing, Code Generation, AI Agents, DevOps, Human-AI Collaboration

1

Introduction

Advances in generative AI are reshaping how software is created, tested, documented, and operated. In software-intensive organizations, this raises questions not only about suitable tools but also about how they can be embedded within development processes. This paper examines these developments under the term AI-driven Software Development as an overarching perspective on the use of artificial intelligence across the software development lifecycle (SDLC). The practical relevance is already visible in numerous industrial applications. Google reported in 2024 that more than a quarter of its new code is generated by AI and subsequently reviewed by engineers [49]. Amazon documents the migration of approximately 30,000 applications to 1

Java 17 with measurable effort and cost reductions [47]. Shopify has established AI use as a daily work expectation, linking it to resource requests and reviews [50, 51]. A joint study by GitHub and Accenture reports high Copilot adoption in professional development teams [48]. While these examples illustrate growing adoption, they are insufficient for a rigorous assessment of effects and risks in real development organizations. Controlled experiments and field studies report substantial time savings in some settings [14, 15]. A randomized study with experienced open-source developers working in familiar repositories, however, found longer task completion times under AI assistance [16]. Security studies further indicate that AI-generated code can contain vulnerabilities and should not be integrated into production systems without additional review steps [21, 26]. The central challenge therefore lies less in the isolated introduction of individual AI tools than in their controlled integration. Much of the existing literature focuses on individual activities such as code generation, requirements engineering, test support, or automated bug fixing. Organizations additionally need guidance on how AI support can be embedded technically, organizationally, and in regulatory terms to enable the controlled adoption and evaluation of AI-driven Software Development. This paper develops a pragmatic framework for the transition from selective AI support to more integrated forms of AI-driven Software Development. The focus is not on evaluating individual tools or models, but on how AI usage can be systematically organized and governed across key software engineering activities—from assistive individual functions through integrated workflows to more fully AI-shaped development and operational processes. The paper is structured as follows. Section 2 describes the research approach. Section 3 positions the work within the research landscape. Section 4 examines AI support across key software engineering activities. Section 5 presents the transformation model. Section 6 derives concrete design practices. Section 7 discusses the case study. Conclusions, limitations, and outlook follow.

2

Research Approach

The paper follows a multi-stage, conceptual approach that combines literature analysis, project experience, model development, and an exploratory case study. Figure 1 summarizes the four steps. Establish foundations. The foundational layer combines scientific studies on AI-assisted software development with project experience from the authors’ professional context. The literature review was conducted exploratively and iteratively across ACM Digital Library, IEEE Xplore, arXiv, and Google Scholar, supplemented by practitioner publications from cloud, platform, and tool providers. Search terms included LLMs for Software Engineering, AI Coding Assistants, AI-assisted Software Engineering, AI-driven Software Development, AI-native Software Engineering, Human-AI Collaboration, Agentic Software Engineering, Program Repair, DevOps Metrics, and AI Governance. Given that terminology in this field is not yet consolidated, these terms were used as sensitizing concepts rather than disjoint analytical categories. Analyze AI support in software engineering. The second step examines how generative AI can support key software engineering activities, from requirements engineering and implementation through testing, review, deployment, operations, and maintenance. The goal is not to evaluate individual tools but to identify recurring patterns by synthesizing findings from research, practitioner reports, and project experience. Derive transformation model. On this basis, a pragmatic transformation model is developed that distinguishes between AI-assisted, AI-integrated, and AI-driven Software Development, connecting these stages to tool support, governance mechanisms, and productivity measurement. The model is intended as a structuring framework rather than a normative maturity model. Integrate exploratory case study. To ground the framework, an exploratory case study of 2

1

Establish Foundations State of Research | Project Experience

2

Analyze AI Support in Software Engineering Requirements Engineering | Implementation | Test/Review | Deployment/Operations | Maintenance

3

Derive Transformation Model AI-assisted → AI-integrated → AI-driven Tool Support | Governance | Productivity Measurement

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Integrate Exploratory Case Study Mid-Sized Software Company Figure 1: Research approach of this paper.

a mid-sized custom software company is presented. It is not intended to validate the model empirically but to contextualize the proposed approach. The analysis draws on publicly available information, observable platform structures, typical development and operations patterns, and the authors’ project experience.

3

Background and Related Work

This section situates the state of research and technology relevant to AI-driven Software Development. It first distinguishes central terms and related concepts. It then examines large language models and specialized code models as the technical foundation of current AI support in software engineering. In this context, it also discusses the required harness and tool integration. In this paper, the term harness does not refer to a specific vendor or tool, but to the technical, organizational, and procedural embedding of AI systems into project context, development tools, execution environments, verification mechanisms, permission structures, and human approval processes. Building on this, the section situates related transformation and lifecycle approaches and summarizes empirical findings on human-AI collaboration, productivity, quality, security, and agentic systems. The aim is to identify the key reference points for the organizing framework developed in this paper.

3.1

Conceptual Positioning

Current literature on AI-assisted software development uses several overlapping terms. LLM4SE (Large Language Models for Software Engineering) denotes the research field concerned with applying large language models to software engineering tasks [1, 2]. Generative software development refers in classical software engineering to model- and domain-specific language-based artifact generation [38]; in the context of generative AI it additionally covers code, tests, specifications, and documentation produced by large language models [34, 39]. AI-assisted Software Engineering describes a primarily assistive usage in which AI supports individual tasks, whereas AI-native or AI-first Software Engineering implies deeper process and organizational changes [40, 41]. Agentic Software Engineering highlights systems that plan tasks, use development tools, and iteratively verify results [28, 29, 30, 31].

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In this paper, AI-driven Software Development serves as the overarching working term, encompassing software development practices in which AI substantially supports, extends, or partly automates activities across the SDLC. The proposed transformation framework distinguishes three usage forms: AI-assisted, AI-integrated, and AI-driven development. The related terms listed above are understood not as competing categories but as adjacent perspectives on different expressions of AI-driven Software Development.

3.2

LLMs and Code Models in Software Engineering

The technical foundation of most current approaches consists of large language models and code-specialized models. Beyond proprietary frontier systems, openly available and specialized code models are gaining importance. Code Llama [5] and StarCoder [6] represent key reference points. In practice, different model classes are employed. Proprietary frontier models such as GPT-4.1 and GPT-5 [52, 53], Claude Sonnet and Claude Opus [54], and Gemini 2.5 Pro [55] are routinely used for software development tasks. Specialized code models such as Codestral [56], DeepSeekCoder [57], and Qwen2.5-Coder [58] are designed specifically for code generation, completion, understanding, reasoning, and repair. For organizations with high data privacy and auditability requirements, the distinction between proprietary, openly available, and locally deployable models is at least as important as raw model performance, since it directly affects governance, operational risk, and compliance requirements.

3.3

Harness, Tool Integration, and Development Environments

The impact of large language models and code models in software engineering does not depend on model performance alone, but also substantially on their embedding in development environments and processes. The previously introduced term harness refers to the technical, organizational, and procedural environment through which a model is connected to project context, tools, and control mechanisms. This includes, in particular, access to repositories, issues, documentation, build and test systems, as well as mechanisms for logging, permission boundaries, quality assurance, and human approval [69, 70, 71, 72]. A harness translates model capabilities into usable development workflows. It determines which information is made available to a model, which actions it is allowed to perform, how results are verified, and at which points human decisions remain necessary. It therefore forms an intermediate layer between isolated model use and productive integration into software development processes. For AI-driven Software Development, this layer is central because it is only through such embedding that generated suggestions become traceable, verifiable, and controllable contributions to the development process. This harness perspective is increasingly reflected in current development tools and agentoriented coding environments. Tools such as Claude Code, Amazon Q Developer, Cursor, GitHub Copilot, and cloud-based coding agents connect language models with repository context, file editing, command execution, test execution, documentation, and review workflows [46, 47, 45, 43, 44]. They therefore illustrate that the practical value of AI support does not arise from model access alone, but from the surrounding environment that structures context provision, tool use, quality checks, permissions, and human oversight. At the same time, these tools underline that harness design should be treated as an explicit engineering and governance task rather than as a purely technical integration detail.

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3.4

Related Approaches to AI-Assisted Software Development

The organizing framework proposed in this paper is situated within a broader landscape of approaches to the AI-assisted further development of software engineering. These approaches, however, do not pursue the same objective. Some primarily describe how the software lifecycle changes through generative AI, while others focus more strongly on organizational prerequisites, role models, or tool pipelines. A phase-oriented perspective can be found, for example, in the AI-driven Development Life Cycle proposed by AWS. In this view, AI is understood as part of the entire development process, ranging from the early clarification of business requirements through construction and validation to operations [42]. The DORA AI Capabilities Model by Google takes a different perspective. Rather than proposing a process model, it asks which capabilities organizations need for the effective use of AI-assisted Software Development. These include, among others, clear guidelines, reliable access to data and context, platform maturity, and robust engineering practices [59]. Research on individual lifecycle activities further illustrates that AI support extends beyond implementation. In requirements engineering, Zadenoori et al. show that large language models can support elicitation, validation, and specification analysis [33]. This strengthens the view that AI-assisted software development must be considered across the lifecycle rather than as a code-generation phenomenon alone. A more future-oriented perspective is articulated in work on AI-native Software Engineering and Software Engineering 3.0 (SE 3.0). These concepts refer to a vision in which software development is driven more strongly by business and technical intent, and in which AI systems are integrated as collaborative team partners into development environments, toolchains, and runtime processes [40, 41]. Within these discussions, the term Zero-Touch Engineering appears as a boundary case of extensive agentic automation, in which AI systems independently prepare or execute large portions of analysis, implementation, testing, deployment, and operations. It is adjacent to work on Zero-Touch DevOps and agentic software engineering systems [77, 32, 31, 72]. For this paper, Zero-Touch Engineering is relevant as a boundary concept indicating where agentic development environments could ultimately lead. It is not treated as a standalone transformation stage, since its practical realization continues to depend on human goal-setting, verification, approval, and organizational control. Analytical and practitioner-oriented work, for example on TuringBots, AI-augmented software engineering, or AI-assisted software delivery, further emphasizes changes in tools, roles, and platforms. The focus of these contributions is less on a fully developed scientific transformation model than on the observation that AI support is increasingly connecting multiple activities across the software lifecycle. As a result, developer roles shift more strongly toward orchestration, control, and system design [60, 61, 62, 63]. What these approaches have in common is that generative AI is not understood as an isolated individual tool. Its value emerges only through its embedding in the development process. The present paper adopts this basic assumption, but focuses more specifically on the logic of transformation. It describes the transition from AI-assisted through AI-integrated to AI-driven Software Development as a pragmatic organizing framework for organizations that seek to classify and further develop their use of AI more systematically.

3.5

Human-AI Collaboration

Several studies show that the impact of generative AI in software engineering does not depend on model quality alone. Based on a workshop with software engineers, Hamza et al. describe a shift in the role of AI from a mere tool toward a collaborative partner [7]. Human oversight remains indispensable, especially for complex or safety-critical tasks.

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Treude et al. develop a taxonomy of human-AI interaction in software engineering, covering a broad spectrum of use cases from querying existing codebases to debugging, planning, review, and documentation tasks [8]. Barke et al. examine the practical use of GitHub Copilot and identify both acceleration-oriented use in familiar tasks and exploratory use when developers work with unfamiliar technologies or interfaces [9]. Against this background, Zero-Touch Engineering should be understood as a boundary case rather than as a realistic normal form of software development. Work on Zero-Touch DevOps and agentic software engineering systems shows that larger parts of the development process can be automatically prepared or executed [77, 32, 31]. However, empirical findings on human-AI collaboration suggest that human goal setting, domain-specific assessment, security review, and approval remain central components of productive software development. Zero-touch therefore describes less the disappearance of human responsibility than a shift of human work toward steering, review, and control. Vaithilingam et al. analyze early experiences with AI-based tools for code generation [10]. Mozannar et al. examine the additional cognitive effort involved in reading and reviewing AIgenerated suggestions [11]. Russo addresses organizational factors influencing the adoption of generative AI in development organizations [12]. Khemka and Houck complement this perspective with developers’ expectations and concerns, particularly regarding trust, transparency, and potential loss of control [13].

3.6

Productivity and Empirical Impact

The empirical evidence on productivity effects is mixed. Peng et al. report a substantial reduction in task completion time for programming tasks in a controlled experiment with GitHub Copilot [14]. Cui et al. also observe productivity gains in field studies, but emphasize the strong context dependence of the findings [15]. An important counterpoint is provided by the METR study. In this study, experienced open-source developers worked on repositories familiar to them and, with AI support, required more time on average than without it [16]. The authors attribute this, among other factors, to additional review effort and the need to correct generated suggestions. Liang et al. examine the usability of AI-based programming assistants in a large-scale developer survey [17]. Sergeyuk et al. analyze real usage patterns in development environments [18]. Industry reports by GitHub and Microsoft on code quality, as well as the annual DORA State of DevOps Report, complement these findings from an application-oriented perspective [19, 20]. Overall, the available studies suggest that productivity gains depend on several factors, including task complexity, the experience level of the users, the codebase, process integration, and review effort. The amount of generated code is not a meaningful success measure. More suitable indicators include lead time, defect density, maintainability, security, and developer satisfaction.

3.7

Security, Correctness, and Supply Chain Risks

Several studies document security and quality problems in AI-generated code. Pearce et al. examined GitHub Copilot in security-critical scenarios and found a significant share of vulnerable suggestions [21]. Sandoval et al. analyzed the security consequences of AI-based coding assistants in a user study [22], and Khoury et al. report similar findings for ChatGPT-generated code [23]. Assessing functional correctness remains challenging. Liu et al. show with EvalPlus that standard benchmarks such as HumanEval [4] overestimate actual model performance when stricter test cases are applied [24]. Ouyang et al. highlight the non-determinism of code generation as an additional complication for reproducibility [25]. Spracklen et al. document hallucinated package names and the resulting supply chain risks [26], and Zhang et al. identify systematic differences between model providers in code generation [37]. 6

3.8

Project-Level Evaluation and Agentic Systems

A key challenge for AI-driven Software Development is that many standard benchmarks only approximate real software engineering work. They often focus on isolated programming tasks, while productive development requires understanding repository context, modifying several files, running tests, interpreting failures, and integrating changes into existing architectures and workflows. Project-level evaluation therefore becomes essential for assessing whether AI systems can contribute reliably to realistic development tasks. SWE-bench addresses this issue by evaluating language models on real-world software engineering problems derived from GitHub issues and pull requests [27]. This shifts the focus from isolated code completion toward repository-level tasks. Related agentic approaches, such as SWE-agent, show how language models can interact with files, tests, and development tools in order to solve software engineering tasks more autonomously [28]. Other systems, including MetaGPT, AutoGen, and OpenHands, explore multi-agent coordination, conversational agent frameworks, and open platforms for software development agents [29, 30, 31]. Broader surveys on autonomous LLM agents position these systems as an emerging field that extends classical coding assistance toward partially autonomous development workflows [32]. Beyond benchmark-oriented code generation, recent work also addresses evaluation and repair tasks more directly. Jiang et al. survey code generation with language models, while Chen et al. compare evaluation methods for AI-based code generation [34, 35]. Xia et al. show that pre-trained models can match or surpass established automated program repair approaches in several scenarios [36]. These findings support the shift from isolated code suggestions toward project-related development tasks that require testing, repair, and evaluation. For the transformation perspective developed in this paper, these results are important for two reasons. First, they show that agentic systems can extend AI support beyond suggestion generation toward task-oriented interaction with development environments. Second, they make clear that such systems require stronger safeguards than traditional coding assistants. Traceability, reproducibility, permission boundaries, test execution, logging, and human approval are not secondary implementation details, but prerequisites for using agentic systems in productive software engineering contexts.

3.9

Summary

The overall picture confirms that AI-driven Software Development cannot be reduced to code generation. Large language models and specialized code models increasingly support activities across the software lifecycle, including requirements engineering, architecture, implementation, testing, review, operations, and maintenance. At the same time, the benefits and risks of AI use depend strongly on task type, codebase characteristics, process integration, developer experience, and review effort. The discussion is therefore shifting from isolated assistance toward the integration of AI into development environments, quality assurance, and governance structures. Harness design, tool integration, human oversight, verification, and security review emerge as central prerequisites for productive use. Agentic systems extend this development by introducing new forms of partial automation, but they also raise additional requirements for traceability, accountability, auditability, and organizational control. Appendix Tables 4 and 6 summarize key terms and selected research and practice sources. On this basis, the following section examines how AI support can be classified along key software engineering activities before being transferred into a pragmatic transformation model.

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4

AI Support for Key Software Engineering Activities

Following the conceptual and methodological positioning in the previous sections, this section turns to the concrete activities of software engineering. Generative AI affects not just a single stage of development, such as code generation, but can support different phases of the software lifecycle. It should therefore not be understood merely as a tool for individual tasks, but as part of a broader development and learning process.

4.1

Requirements Analysis and Specification

In requirements analysis and specification, the strengths of large language models are most visible in structuring, condensing, and generating alternatives. Language models can transform free-text input from interviews, tickets, or workshops into user stories and acceptance criteria, make implicit assumptions explicit, and suggest alternative formulations. A systematic literature review by Zadenoori et al. confirms these application patterns in requirements engineering [33]; lifecycle-wide surveys also classify requirements-related tasks as a growing field of application [1, 2]. However, the domain-specific validation and legitimation of requirements remain the responsibility of product owners, business stakeholders, and other accountable domain roles. Quality assurance of AI-generated requirements artifacts is particularly important. Requirements generated or reformulated with large language models may appear plausible while still being incomplete, ambiguous, difficult to verify, or insufficiently aligned with existing constraints. Recent work on LLMs in requirements engineering indicates that the use of such models continues to raise challenges related to reproducibility, evaluation, domain adaptation, and integration into robust workflows [73, 33]. For practical use, AI-generated requirements should therefore not be treated as finished specifications, but as drafts that require systematic review and domain-specific approval. One approach to quality assurance is to structure requirements through templates, controlled language, and explicit acceptance criteria. The Easy Approach to Requirements Syntax (EARS) shows that natural-language requirements can be formulated more precisely, consistently, and verifiably through simple sentence patterns [74]. For AI-assisted requirements work, this means that models should not merely generate free-text suggestions, but should make conditions, triggers, system responses, exceptions, and measurable acceptance criteria explicit. Requirements and test cases can be used reciprocally for quality assurance: Acceptance and system tests can be derived from requirements, while existing or newly generated test cases can help reveal missing conditions, unclear expectations, and incomplete requirements [75, 76]. Such a review framework can be part of a harness without replacing domain-specific evaluation and approval of the requirements.

4.2

Architecture Design and Implementation

In architecture design and implementation, AI supports not only the generation of individual code fragments but increasingly also the handling of coherent technical tasks. These include sketching alternative architecture and interface variants, deriving adapter logic, refactoring, bug fixing, test preparation, and changes across multiple files [14, 15, 9]. Surveys on code generation and evaluation provide a methodological classification of these capabilities [34, 35]. Particularly for recurring development tasks and when working with unfamiliar frameworks, substantial productivity gains can result. For architecture design and implementation, the harness is primarily the environment in which AI-generated suggestions and changes are connected with repository context, development tools, build and test systems, and review processes. It determines which parts of the codebase an AI system can take into account, which architecture and implementation decisions it may

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prepare, which changes it can suggest or execute, and how these changes are reviewed before adoption. Value is created only when generated designs and code changes are integrated into existing architecture, build, quality, and security requirements. Architecture decisions often affect longterm system properties such as maintainability, extensibility, performance, security, and technical debt. They therefore cannot be derived from locally plausible model suggestions alone, but require contextual evaluation against existing architectural constraints and organizational development goals. Zhang et al. also point to differences between model providers that should be considered when selecting tools [37]. At the same time, the focus of many developer tasks shifts from pure syntax production toward problem decomposition, context management, and verification. Mozannar et al. note that reading and checking AI-generated suggestions can create additional cognitive effort [11]. In stable development processes with clear quality and review mechanisms, this effort may be reduced and, depending on the task context, partly offset by productivity gains in other development phases.

4.3

Test and Review

AI can add the most value in testing and review where artifacts are currently produced incompletely, late, or manually. Models can propose unit tests, test data, and pull-request summaries, making coverage gaps visible earlier, preparing reviews more thoroughly, and accelerating routine checks. For legacy code or poorly documented interfaces, AI can help describe existing behavior and derive initial regression tests. This value only materializes if AI-generated test artifacts are themselves reviewed. Multiple studies document security and correctness problems in AI-generated code [21, 22, 23, 24, 26]. Without execution, coverage assessment, regression testing, and human review, AI-generated tests may provide limited meaningful coverage, and reviews risk becoming superficial. The nondeterminism of model outputs creates additional requirements for reproducibility and logging [25]. The harness connects verification mechanisms with AI-assisted artifact generation, but it replaces neither quality gates nor human judgment.

4.4

Deployment and Operations

In deployment and operations, AI primarily supports automation, analysis, and operational assistance. Language models are already used to configure deployment pipelines, explain infrastructure definitions, generate release notes, and identify misconfigurations in build and deployment processes. In CI/CD environments, AI can assist with analyzing failed builds, prioritizing error messages, and preparing rollback or recovery measures. During live operations, AI helps through condensation, classification, and prioritization. It can summarize logs, classify incidents, and draft runbooks, thereby enabling faster pattern recognition and earlier incident containment. Interventions affecting production should initially be limited to suggestions, with permission scoping, audit logs, and approval processes remaining necessary to secure production-proximate actions.

4.5

Maintenance

In maintenance, the value of generative AI lies primarily in analyzing existing systems and supporting long-term upkeep. Models can explain legacy code, surface technical debt, estimate the impact of changes, and assist with bug fixes and minor refactorings—particularly valuable in historically grown systems with limited documentation. A growing application area is AI-assisted migration and modernization of legacy code. Work on mainframe and COBOL systems shows that large language models can be applied to code comprehension, summarization, translation to modern programming languages, and refactoring 9

preparation [78, 79, 80]. Case studies on PL/SQL-to-Java migration demonstrate that LLMs can assist in transforming large legacy systems when domain models, examples, target architectures, and validation mechanisms are incorporated into the process [81]. These studies consistently show that legacy migration cannot be reduced to code translation: semantic equivalence, testability, target architecture integration, and expert review remain decisive. Xia et al. demonstrate that pre-trained models can match or exceed established automated program repair approaches in several scenarios [36]. Changes should nonetheless remain small, test-secured, and reversible, especially for refactorings, migrations, and security-sensitive modifications. Generated documentation must be versioned and regularly reconciled with the actual system state [19]. The activity-level analysis shows that AI support generates different potentials, risks, and control requirements depending on the lifecycle phase. While individual tasks can already be supported in isolation, comprehensive use across software development activities requires additional technical, organizational, and governance prerequisites. These prerequisites form the basis for the transformation model presented next.

5

Transformation Model for AI-driven Software Development

Building on the activity analysis, this section describes a possible transition from a well-organized, quality-assured development organization toward assistive, integrated, and agentic AI usage. The stages and transitions are presented as a pragmatic, practice-oriented framework intended to help organizations position their AI usage and to invite further discussion. Effort shifts and productivity measurement are addressed within this model; concrete design practices follow in Section 6. Figure 2 presents the overarching model. It shows the software engineering lifecycle as a cyclical process from requirements analysis through architecture design, implementation, testing, and deployment to operations and maintenance. This process is centered on a consistent development base that may be agile, DevOps-oriented, phase-based, or hybrid. What matters is not the specific process model, but that requirements, architecture design decisions, implementation, tests, releases, operations, and maintenance are traceable and connected. Four cross-cutting AI functions operate across all lifecycle activities. AI Context encompasses the project knowledge made accessible to AI systems, including repositories, architecture design decisions, tickets, and knowledge bases. AI Generation represents AI-assisted artifact production, including code, tests, documentation, and patches. AI Verification covers project-level checking mechanisms, including tests, SAST/SCA, and reviews. Governance and Control describes the organizational framework within which AI-generated artifacts are controlled and integrated into development and operational processes. In this sense, these areas can be understood as the harness through which AI systems are embedded in development processes, supplied with context, oriented toward verifiable artifacts, and organizationally controlled. The lower bar of the figure further illustrates the transformation logic used in this paper. It distinguishes the development from AI-assisted through AI-integrated to AI-driven Software Development. The following subsections explain the starting point, the proposed transformation stages, the transition logic, associated effort shifts, and the measurement of productivity.

5.1

Starting Point: Informal and Heterogeneous Use

In many organizations, AI adoption does not begin as a planned transformation program but as informal, heterogeneous use of individual tools. Developers adopt Copilot, ChatGPT, Claude Code, Cursor, or comparable systems without systematically adapting development processes, quality assurance, data privacy handling, license review, or governance. This starting point is not

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Figure 2: Software engineering lifecycle and transformation logic in the context of AI-driven Software Development. The figure connects activities from requirements analysis through maintenance with the cross-cutting areas of AI Context, AI Generation, AI Verification, and Governance and Control. The lower bar illustrates the transformation stages from AI-assisted through AI-integrated to AI-driven Software Development.

yet an integration stage; it describes a typical pre-phase in which AI is used but organizationally only loosely framed. Empirical studies show that usage patterns, tool selection, and expectations vary considerably between teams and projects [17, 18], generating selective productivity gains alongside risks such as unreviewed code, privacy concerns, unclear licensing, and uncertain accountability for AI-generated artifacts. Russo shows that adoption and impact depend substantially on training, governance, and platform maturity [12], and Khemka and Houck identify trust, transparency, and controllability as central adoption conditions from a developer perspective [13]. A structured transition model can help organizations treat AI adoption as a coordinated change in practices, tools, and accountabilities.

5.2

Transformation Stages

The proposed framework does not describe strictly sequential maturity levels. In practice, different usage forms often coexist: a team may use AI assistively for code completion while simultaneously piloting agents for test generation or pull-request preparation. The relevant question is therefore not formal stage assignment but how deeply AI is embedded in processes, quality assurance, and accountability structures. Table 1 summarizes the three proposed stages. The presentation is a pragmatic structuring proposal; it draws on the lifecycle, capability, and vision approaches compared in Section 3 and 11

condenses them into an organization-level transition logic. The transitions between stages mark key prerequisites for the next integration level: approved AI tools as the basis for governed assistance; context integration and quality gates for integrated use; and agentic workflows with auditability for AI-driven development. With the integrated stage, a harness gradually takes shape that connects context provisioning, tool use, verification, and governance. Table 1: Proposed Transformation Stages Stage Usage Mode

Characteristics

Practices

Challenges

1

AI-assisted Development AI-integrated Development AI-driven or Agentic Development

Approved tools, usage guidelines, mandatory reviews, training. Context systems, guidelines, test scenarios, quality gates. Audit logs, security mechanisms, role models, human approval.

Heterogeneous adoption and unreviewed outputs.

2

AI supports individual tasks: code, tests, documentation, explanations. AI is embedded in development sub-processes. Agents support development, testing, operations, and maintenance.

3

Governance, integration, and process alignment. Control, traceability, and accountability.

Modern software development continues to rest on clear requirements, modular architecture, automated testing, CI/CD, reviews, and clearly assigned ownership. These foundations are especially mature in agile and DevOps-oriented organizations, but can be realized in phase-based or hybrid processes as well. Where they are absent, AI can amplify existing weaknesses rather than compensate for them.

5.3

Transition Logic

The proposed transition builds on established development practice and insights from human-AI interaction and agentic software engineering. Similar premises appear in the AWS AI-driven Development Life Cycle [42], in work on the future of AI-assisted software development [3], and in studies on human-AI collaboration [8, 7]. At the assistive stage, the goal is to introduce AI tools in a controlled manner within existing processes: clear usage guidelines, training, data privacy review, and mandatory reviews. Security studies on Copilot- and ChatGPT-generated code show that these safeguards are needed from the outset [21, 22, 23]. The integrated stage requires AI systems to work with project-specific context. Knowledge from repositories, ticket systems, and project documentation must be accessible and current. Verification requirements also increase. Public benchmarks and isolated test runs provide only limited evidence for assessing the quality of generated solutions [24, 25], making automated tests, static analysis, and reusable evaluation cases necessary. This combination of context access, tool integration, and quality gates constitutes the harness at this stage without yet reaching agentic operation. Agentic usage patterns extend this by introducing systems that can generate or modify artifacts, execute tests, and react to error messages. Such capabilities are found not only in research prototypes but in production-ready tools such as GitHub Copilot [44], Cursor Agent [45], Claude Code [46], and Amazon Q Developer [47]. At this stage, the harness is extended with defined execution environments, permission scoping, logging, and approval points. In practice, this requires narrowly scoped permissions, defined sandboxes, and human approval for production-proximate changes delivered as reviewable pull requests.

5.4

Effort Shift and Economic Effects

Generative AI redistributes rather than uniformly reduces effort in development projects. Tasks such as boilerplate implementation, test drafting, and documentation can be accelerated substan-

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Table 2: Qualitative effort shift between conventional and AI-driven development Activity

Conventional Effort

AI-driven Effort

Shift

Requirements Engineering

Manual specification, coordination, and elaboration of requirements.

AI assists with structuring, clarification, acceptance criteria, and initial drafts.

Less writing effort; stronger focus on validation and domain alignment.

Implementation and Architecture Design

Code and architecture variants predominantly created and adapted manually.

AI supports architecture design variants, code generation, completion, refactoring, interfaces, and test preparation.

Less routine implementation; greater effort for integration, review, and verification.

Test and Review

Tests, reviews, and quality checks mostly manual or incomplete.

AI generates tests, analyzes changes, and supports reviews.

Faster artifact creation; additional effort for evaluation and quality assurance.

Deployment and Operations

Deployment, error analysis, and incident communication heavily manual.

AI supports build analysis, triage, log evaluation, and recovery preparation.

Faster analysis and prioritization; greater need for control and approval processes.

Maintenance

Legacy analysis, bug fixes, and documentation upkeep manual and time-intensive.

AI assists with legacy analysis, change impact estimation, bug fixes, and documentation.

Less analysis and onboarding effort; additional effort for quality assurance and documentation currency.

tially. At the same time, quality assurance, verification, context provisioning, and governance gain importance. Economic impact is highly context-dependent. In standardized development tasks with clear quality criteria, visible productivity gains are common. Studies with experienced developers show, however, that review and correction overhead can exceed expected gains [16, 11]. In safety-critical or complex legacy environments, additional verification and coordination steps may consume a significant portion of those gains. Beyond licensing and API costs, additional investment in training, guidelines, security reviews, model approval, and process integration is required, especially for agentic systems, where API-based models can generate highly variable runtime and token costs requiring active cost control. Table 2 summarizes typical qualitative effort shifts between conventional and AI-driven development.

5.5

Measuring Productivity

Productivity measurement in AI-driven development should not be reduced to individual tools or isolated activity metrics. The number of generated lines of code and raw suggestion acceptance rates say little about whether throughput, quality, and stability actually improve. Productivity assessment should therefore take multiple perspectives into account, including speed, quality, operational stability, security, human review overhead, and cost. Metrics are instruments of measurement, not ends in themselves. Practically useful are indicators that can be derived from existing development and operations tooling without additional reporting overhead. Established DevOps metrics, including DORA metrics, provide a suitable starting point [20]. Relevant examples are lead time for changes, deployment frequency, change failure rate, and recovery time. In an AI-driven development context, these indicators can be complemented by qualityand security-oriented measures such as test coverage, security findings, frequency of human corrections, bugs detected in regression tests, traceability of agentic changes, and cost per agentic task. Table 7 in the Appendix lists example metrics with data sources and their significance in an AI-driven development context.

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6

Design Practices for Implementation

The transformation model describes increasing degrees of AI embedding. For practical application, however, this stage logic alone is not sufficient. Organizations must decide how project context is provisioned, how AI-generated artifacts are evaluated, how reviews are conducted, how tests are secured, and how agentic workflows are controlled. This section therefore translates the organizing framework into design practices that serve as a reference structure for the case study in Section 7. The focus is on the organization of project knowledge, the technical safeguarding of AIgenerated artifacts, and the governance of agentic workflows. Project knowledge must be made available in such a way that AI systems can work in a context-sensitive but controlled manner. AI-generated artifacts require reviews, tests, and technical quality gates. Agentic workflows additionally require mechanisms for limitation, logging, and human approval. The following design practices can therefore be understood as practical building blocks of a harness.

6.1

Context Provisioning, Task Clarification, and Artifact Evaluation

Integrated AI use requires reliably managed project context. AI systems should not merely respond to isolated prompts but access curated, current information: source code, architecture decisions, interface specifications, tickets, domain specifications, test artifacts, operational documentation, and known incidents. What matters is not maximum information quantity but targeted, traceable context selection. Context should be versioned, assigned to responsible owners, and evaluated for currency, confidentiality, and relevance. For larger codebases, repository indexing, retrieval mechanisms, and project-specific context templates are needed to keep AI support reproducible and controllable. Before implementation, AI can help structure requirements, surface open questions, and propose acceptance criteria. Factual decisions must not, however, be delegated to the model. A productive working pattern has AI generating suggestions for user stories, test cases, interfaces, or non-functional requirements while product owners, architects, or domain experts validate their correctness. The benefit lies in accelerated clarification and better visibility of implicit assumptions, not in automated definition of business and technical goals. AI-generated code should be treated like an external contribution that must be understood, reviewed, and integrated. Before adoption, compilability, style conformance, architectural compatibility, comprehensibility, testability, and security implications must be checked, along with whether the proposal fits the existing codebase, uses dependencies correctly, and avoids hallucinated content or unnecessary complexity. Responsibility for adoption remains with the developers.

6.2

Reviews, Tests, and Quality Gates

In AI-integrated and AI-driven development, reviews must more sharply separate generation from verification. AI can prepare pull requests, explain changes, identify inconsistencies, and flag risks. Approval should nonetheless be performed by humans, especially for security-relevant, architectural, or production-proximate changes. Practically useful review annotations make visible which parts of a change were AI-assisted and what task description was used. They should also document which tests were executed and what assumptions the proposal contains. This makes a review not only a code check but a check of the generation context. AI can generate test cases, test data, and check scripts, but the existence of AI-generated tests is not itself evidence of correctness. A particular risk arises when code and tests originate from the same model context, since both may share similar assumptions or errors. Tests should therefore be grounded in domain acceptance criteria, boundary cases, error cases, and existing 14

test requirements. AI-generated tests must also undergo review, especially when they secure production-critical logic or replace existing tests. For technical quality assurance, automated tests, static analysis, security scans, dependency checks, and CI/CD pipelines remain central quality gates. Tools such as GitHub Advanced Security, Snyk, Semgrep, Trivy, and SonarQube address distinct aspects of this assurance, including code scanning, dependency review, secret detection, vulnerability analysis, license review, misconfiguration detection, and quality rules [64, 65, 66, 67, 68]. These mechanisms are especially important because AI-generated code can appear plausible without being functionally correct, secure, or maintainable.

6.3

Tool Support and Agentic Workflows

Modern AI development tools rely on several technical mechanisms. They provide access to project context, use explicit project rules or instruction files, operate in local or cloud-based environments, and produce traceable artifacts such as diffs, pull requests, logs, or test outputs. For context access, repository search, semantic search, and explicit context information are particularly relevant. Tools such as GitHub Copilot and Cursor can retrieve relevant parts of a codebase through text search, grep-like approaches, semantic retrieval, and agentic search steps [43, 45]. This avoids the need to load entire codebases into a model window. Instead, relevant files, symbols, documentation sections, or prior changes are retrieved on demand and used as working context. Project knowledge must therefore be findable, current, and sufficiently structured. Search-based context can be complemented by explicit rule and instruction files. Claude Code, for example, supports project-level instructions and persistent context through files such as CLAUDE.md [46]. Similar mechanisms can take the form of repository rules, custom instructions, or project-specific context templates. These mechanisms make organizational knowledge more accessible to AI-assisted development work. They can include architecture principles, coding conventions, test requirements, security rules, domain terminology, and build or deployment guidance. Agentic tools extend this pattern by handling tasks in controlled execution environments. GitHub Copilot Coding Agent can examine a repository, create an implementation plan, make changes on a branch, and prepare a pull request [44]. Cursor Agent, Claude Code, and Amazon Q Developer also support agentic task handling. Typical actions include file reading, code modification, test execution, and code transformation [45, 46, 47]. Because of their extended reach, agentic tools must not operate without constraints. Tasks should run in scoped branches, sandboxes, or temporary environments. Scope, objective, permitted tools, cost budget, and abort conditions should be defined in advance. Critical actions require explicit human approval. This applies in particular to merges, deployments, schema changes, permission changes, and production-proximate configuration changes. For auditability, relevant execution details should be logged. This includes executed commands, models used, context sources, generated artifacts, test runs, and costs. The combination of context access, technical scoping, quality gates, and auditability helps make agentic AI support governable in development organizations.

6.4

Continuous Governance and Improvement

Implementing the transformation model should be tightly coupled with measuring quality, stability, review overhead, and costs. Organizations can start by establishing approved tools and usage guidelines, then progressively integrate context systems, quality gates, and review practices, restricting agentic workflows initially to clearly scoped tasks. Evaluation should not be reduced to generated lines of code or usage frequency; more informative indicators are cycle

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time, review overhead, defect density, security findings, human overrides, rollback rates, cost per task, and audit coverage, as outlined in Section 5.5 and Table 7. AI-driven Software Development is thus not a one-time tool introduction but a continuous learning and improvement process. New model capabilities, tools, security requirements, and regulatory constraints must be regularly assessed and fed back into development practices, standards, and governance mechanisms.

7

Case Study: Mid-Sized Software Company

To ground the proposed transformation model, we consider a mid-sized software company that develops custom software and client platforms, and takes end-to-end responsibility for development, operations, maintenance, and modernization. Its business model is based primarily on project-based development and consulting services. The company is responsible not only for development but also for operating and maintaining complex client systems. The goal is to illustrate how the framework applies to a typical development organization—assessing the recognizable status quo and discussing possible development paths toward more AI-integrated processes. The design practices from Section 6 serve as implementation reference points.

7.1

Initial Situation

The organization is predominantly in an assistive usage phase. Tools such as Copilot, Cursor, Claude, or ChatGPT are already in use, but typically at the level of individual developers and projects, making adoption strongly dependent on particular teams and individuals. Differences are particularly visible in tool selection, prompting practices, privacy assessment, and quality assurance. Agile processes and DevOps orientation are established, and CI/CD pipelines are used across projects. The weaker elements are shared governance mechanisms and organization-wide knowledge and context structures. Project knowledge is distributed across repositories, ticket systems, documentation, and operational artifacts. Unified review mechanisms for AI-generated artifacts are largely absent. Existing tools, knowledge sources, and verification mechanisms are not yet connected into a shared harness.

7.2

Development Path

The target is not fully autonomous software development. More realistic is a stepwise deepening of generative AI integration into existing project activities, with responsibility for architecture, quality assurance, governance, and domain decisions remaining with the teams. Table 3 summarizes possible changes between the assistive starting state and a more AI-integrated development organization. The proposed development path follows the transformation model described in this paper. Initially, the focus is on the controlled use of existing AI tools. Building on this, AI can gradually be embedded more deeply into development, testing, review, and knowledge processes. Only at later stages do agentic forms of work become appropriate, for example for test generation, pull-request preparation, or incident triage. This development concerns not only tools but also organizational structures. Project-oriented delivery is likely to be complemented by more platform- and service-oriented forms of work. Shared guardrails and knowledge structures therefore gain importance.

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Table 3: Potential evolution from assistive to AI-integrated software development Dimension

Assistive Initial State

Target State

Tool Support

Individual use of isolated AI assistants.

Processes

AI usage outside defined workflows.

Quality

Manual quality checks applied after the fact.

Knowledge

Distributed project and operations knowledge.

Roles

Developers use AI individually.

Governance

Individual decisions without consistent rules.

Approved AI tools with controlled context access. AI integrated into backlog, IDE, CI/CD, review, and operations. Automated quality, security, and compliance gates. Versioned knowledge base accessible to teams and AI systems. Teams orchestrate and review AI-generated artifacts. Technical and organizational guardrails, governed permissions, and human approval mechanisms.

7.3

Feasible Implementation Timeline

A stepwise approach over approximately two years is realistic for a mid-sized software company. Adoption should begin not with an organization-wide rollout but with one or two reference projects that are domain-relevant, technically manageable, and representative of recurring delivery patterns. These projects enable tools, prompting and review practices, privacy boundaries, test strategies, and initial metrics to be evaluated in a bounded context. Critically, the reference projects should not only deliver local successes but be deliberately used to derive reusable practices. Start Phase Select 1–2 reference projects; define tools and guidelines.

Derive Standards Review, test, and prompt guidelines; build shared knowledge base. Month 4–6

1

2

Scaling Agentic pilot tasks; governance, cost control, rollout. Month 13–18

3

Month 0–3

Month 7–12

Piloting Run reference projects; collect experience and metrics.

4

Integration AI into CI/CD, review, documentation; extend quality gates.

5 Month 19–24

Continuous evaluation, learning, and adaptation

Figure 3: Proposed implementation timeline for stepwise adoption of AI-driven Software Development in a mid-sized software company.

In a first phase, tool approval, role clarification, and reference project selection take precedence. Experience from these projects is then systematically evaluated to derive organizational standards. Broader integration into CI/CD pipelines, knowledge platforms, and operational processes is only sensible on this basis. Toward the end of a two-year period, initial agentic workflows can be piloted for clearly scoped tasks and then progressively scaled. Figure 3 sketches this timeline. The timeline is deliberately a guiding framework. Depending on project portfolio, client proximity, and existing platform maturity, individual steps may proceed faster or slower. What matters is not the exact duration but the sequence: targeted piloting first, then standardization, then broader process integration, and only then controlled scaling of agentic workflows.

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7.4

Implementation Along the Design Practices

The implementation follows the practices outlined in Section 6. The existing tool landscape is not replaced, but extended with controlled AI capabilities. The transition therefore does not consist of deploying a single AI tool. It consists of progressively building a harness that connects context provisioning, tool use, quality assurance, and governance. In the early phases, the organization should define shared guidelines for data privacy, prompting, review, and tool approval. These guidelines establish a common baseline for teams that already use AI tools in different ways. They also help clarify which data may be used, which tools are approved, and how AI-generated artifacts should be reviewed before they enter shared repositories or client-facing deliverables. As implementation progresses, shared knowledge and context systems become more important. Repository knowledge, documentation, tickets, and operational data should be made accessible in a structured and maintainable form. This does not mean that all information must be loaded into AI systems. Rather, relevant context should be retrievable when needed and kept sufficiently current. On this basis, AI systems can support requirements analysis, test generation, code review, documentation, and selected operational tasks more systematically. For a concrete codebase, such a harness could consist of several connected elements. The repository would expose relevant source files, architecture notes, coding conventions, test suites, issue references, and deployment information as retrievable context. Project-specific instruction files could describe architectural boundaries, naming rules, security constraints, and expectations for tests and documentation. Current tools increasingly support such mechanisms, for example through project-level instruction files, repository rules, or tool-specific context files [46, 45, 43]. AI tools would then operate against this structured context rather than against isolated prompts. A proposed change would be created on a separate branch, accompanied by a short rationale, affected files, executed tests, and known assumptions. Before integration, the change would pass through automated tests, static analysis, dependency checks, and human review. An illustrative example of how such a repository structure can make the harness visible in a codebase is provided in Appendix B. The example should be understood as a repository-level concretization. It mainly shows the part of a harness that becomes visible in the codebase. A complete harness also includes the execution environment, context selection, tool access, permission boundaries, quality gates, logging, cost control, and human approvals. The codebase represents only one part of the technical and organizational control environment. Artifact evaluation should be integrated more tightly with the development workflow. Reviews, automated tests, security checks, and dependency verification should not be treated as separate downstream activities. They should become part of the normal path through which AI-assisted changes are accepted, rejected, or revised. This is especially important when AI-generated artifacts affect architecture, security, maintainability, or production-related behavior. Agentic tools are most appropriate where tasks are clearly scoped and technically controllable. Examples include pull-request preparation, test execution, and operational event analysis. Even in these cases, the agentic workflow should remain bounded by explicit objectives, limited permissions, traceable changes, and documented results. Automated checks, audit logs, and human approval for production-proximate actions form the control framework that makes such use practically viable.

7.5

Effort Shift and Organizational Implications

With increasing AI support, development effort is redistributed. Routine tasks—boilerplate code, straightforward documentation, standardized test cases—can be partly automated. At the same time, demands on review, context maintenance, architecture work, and quality assurance increase. The value contribution shifts from artifact creation toward verification and accountability for sound solutions. 18

This has economic implications. Conventional time-and-material models, heavily oriented toward billable implementation time, become less meaningful when part of creation is accelerated or automated. The economic emphasis shifts toward delivery capability, quality, stability, and continuous product ownership—opening space for more service- and platform-oriented offerings such as AI-assisted modernization programs or managed AI development services. Role profiles also change. Implementation remains important but is increasingly complemented by AI engineering, platform operations, knowledge management, and governance. Technical system understanding, security competence, and the ability to evaluate AI-generated artifacts gain in importance.

7.6

Risks and Productivity Measurement

Deeper AI integration introduces new risks, including insecure generated code and opaque agentic changes. Organizational guidelines alone cannot fully address these risks. Technical control mechanisms embedded in the development and operations environment are therefore essential. Governance becomes part of the workflow rather than a separate overlay. For observing and evaluating the transformation, a small set of automatically collectable metrics is initially sufficient. Benefits should not be expected only after a complete transition to AI-driven development. Even AI-integrated stages can make improvements visible, for example through faster preparation of reviews, more systematic test generation, better documentation support, or earlier detection of defects and security findings. In early phases, delivery metrics such as lead time, deployment frequency, and failure rate are useful in combination with defect density, test coverage, and vulnerability rate. As AI integration deepens, additional indicators such as review acceptance rate and regression detection rate provide further signal.

7.7

Summary Assessment of the Case Study

The case study shows that the transition to AI-driven Software Development in a medium-sized software company should proceed step by step and based on practical experience. A realistic path begins with a small number of reference projects. The experiences gained from these projects form the basis for company-wide standards and broader integration into the development process. The company considered already has a comparatively good starting position. In organizations with less standardized processes, weaker test automation, or fragmented knowledge structures, the development of these foundations would have to be given greater priority. After the introduction phase, AI is no longer merely an additional tool used by individual developers, but an integral part of software development. At the same time, it remains embedded in technical and organizational control mechanisms. The process should not be understood as a one-time transformation, but must be continuously adapted to new AI-related insights, model capabilities, tools, and regulatory requirements. A balance between standardization and learning capability is important. Quick wins can make benefits visible at an early stage, while controlled spaces for experimentation ensure that new tools and methods are continuously evaluated and, where suitable, transferred into shared standards. The metrics described support this continuous evaluation and improvement.

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8

Conclusion

8.1

Summary

This paper has developed a pragmatic framework for AI-driven Software Development and grounded it in an exploratory case study. The central contribution is not the replacement of classical software development but a structured account of how generative AI can be systematically embedded in development processes. The framework distinguishes assistive, integrated, and agentic usage forms—not as a rigid maturity model but as an organizing logic for practitioners. The harness concept describes the operative embedding of AI systems across context provisioning, tool use, verification, governance, and human approval. The literature review and practice show that generative AI now affects diverse activities across the software lifecycle beyond code generation, while effects and risks remain strongly context-dependent. Productivity gains arise primarily where AI is embedded in stable, well-organized development processes. Without those foundations, the benefits are limited and the risks heightened. The design practices derived in Section 6 concretize the transition for context provisioning, task clarification, artifact evaluation, reviews, tests, agentic workflows, and measurement. They serve simultaneously as building blocks of a harness. The case study illustrates that AI integration should be understood as a continuous learning and improvement process, not a one-time transformation. Metrics serve not only to measure success but to continuously evaluate benefit, quality, review overhead, risk, and cost.

8.2

Limitations

The proposed transformation model describes only one possible path toward AI-driven Software Development, and the design practices are heuristic concretizations rather than empirically validated methods. The comparison of related approaches demonstrates overlaps and distinctions but does not substitute for empirical validation of the proposed transition logic. The work rests on literature analysis, practitioner reports, the authors’ project experience, and one exploratory case study. It therefore does not allow statistical generalization. Parts of the analysis rely on publicly available information; internal architecture, cost, or governance data were not fully accessible. The tool landscape is also evolving rapidly, so specific tools and examples represent a snapshot.

8.3

Outlook

Future work should prioritize empirical investigation. This includes longitudinal studies on the effects of AI assisted development, comparisons of integration strategies, and research on governance, role change, and the economics of agentic systems. Open questions also remain around the evaluation of agentic development environments, the management of external model providers, and the longer term integration of context and knowledge systems into existing platforms. This research area is likely to evolve rapidly. Recent work on harness engineering indicates that the surrounding runtime environment, tool access, project memory, observability, verification, and permission structures are becoming central to the performance and governability of coding agents [70, 72]. Emerging approaches such as Retrospective Harness Optimization suggest that future systems may not only use a predefined harness, but continuously adapt it based on previous execution trajectories and observed failure patterns [85]. It can therefore be assumed that these developments will also affect the structure of the software development process itself. Activities such as task decomposition, review, verification, documentation, and operational analysis may become more closely connected to agentic execution environments and their harness structures.

20

A central question is how such harness structures can be designed, measured, and evolved in real development organizations without weakening human accountability, quality assurance, and organizational control.

Disclosure of Generative AI Use Generative AI tools were used in an assistive capacity for language revision, structuring, and the creation of figures based on the authors’ specifications. Conceptual design, verification, and responsibility for the content of this paper rest with the authors.

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25

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26

A

Supplementary Overviews

This appendix complements the main text with four overviews. Table 4 classifies related terms and selected sources around the working term AI-driven Software Development. Table 5 describes AI capabilities across central project activities and the control mechanisms required for them. Table 6 condenses central findings from the literature on productivity, security, adoption, and agentic systems. Table 7 explains example metrics for delivery capability, quality, governance, and agentic development processes. The operationalization of these metrics depends strongly on the tool chain used, the organizational structure, and the degree of automation. Many metrics should be understood as proxy indicators and should not be interpreted in isolation. High acceptance rates of AI-generated artifacts or low levels of human intervention, for example, do not necessarily imply higher quality or lower risk. Table 4: Conceptual classification of related concepts in AI-driven Software Development Term

Meaning in this paper

Example sources

AI-driven Software Development AI-assisted Software Engineering

Umbrella working term for AI-supported, extended, or partially automated activities across the Software Development Lifecycle. Assistive form in which AI supports individual activities such as implementation, review, testing, documentation, or explanation; frequent starting point of the transformation. Technology- and research-field perspective on the application of large language models in software engineering. Artifact-oriented perspective on the generation of development artifacts, classically model- or domain-specific language-based and currently increasingly LLM-based. Transformative or strategic perspective on a more fundamental realignment of development processes, roles, and toolchains around AI capabilities. Agent-based form in which AI systems plan tasks, use tools, and iteratively improve results; relevant for autonomous or semi-autonomous workflows.

[3, 40]

LLM4SE Generative software development AI-native / AI-first Software Engineering Agentic Software Engineering

[9, 17, 18]

[1, 2] [38, 34, 39]

[40, 41]

[28, 29, 30, 31]

Table 5: AI-supported capabilities and control needs across central project activities Activity

AI-supported capability

Control need

Requirements Engineering

Structuring requirements, deriving user stories and acceptance criteria. AI is particularly useful here for condensation, variant generation, and making implicit assumptions visible. Sketching alternative architecture designs, generating complete code blocks, code completion, refactoring, adapter logic, bug fixing, and changes across multiple files. This is particularly effective for recurring development tasks and when working with unfamiliar frameworks. Suggestions for unit tests, test data, edge cases, test scenarios, and pull-request summaries. AI can make test gaps visible earlier, accelerate checking tasks, and prepare reviews. Support for deployment pipelines, build failure analysis, release notes, log summaries, incident classification, and drafts for operational runbooks. AI is particularly useful for operational analysis, prioritization, and preparation of recovery or rollback measures. Analysis of legacy code, visibility into technical debt, estimation of change impact, and support for bug fixes, refactorings, and technical documentation.

Domain legitimacy, prioritization, and responsibility for requirements remain with the product owner and domain stakeholders.

Architecture Design and Implementation

Test and Review

Deployment and Operations

Maintenance

27

Architecture responsibility, integration into build processes, tests, and security requirements remain central; additional review and verification effort must be bounded.

AI-generated verification artifacts must be executed, evaluated, and secured through human review. Production interventions require permission scoping, audit logs, and approval processes.

Changes should remain small, test-secured, and reversible; documentation must be reconciled with the actual system state.

Table 6: Selected research and practice sources on AI-driven Software Development Work

Cat.

Classification and relevance

Hou et al. [1]

beg

Fan et al. [2]

beg

Hassan et al. [40]

beg

Rumpe et al. [38]

beg

Chen et al. [4]

mod

Roziere et al. [5]

mod

Li et al. [6]

mod

Guo et al. [57]

mod

Hui et al. [58]

mod

Mistral AI [56]

mod

OpenAI [52]

mod

OpenAI [53]

mod

Google [55]

mod

Anthropic [54]

mod

Jiang et al. [34]

mod

OpenAI [70]

har

Böckeler [71]

har

Zhong and Zhu [72]

har

Amazon [47]

har

Anthropic [46]

har

Cursor [45]

har

GitHub [44]

har

GitHub [43]

har

AWS [42]

ver

DORA [59]

ver

Forrester [60]

ver

Gartner [61]

ver

McKinsey [62]

ver

Thoughtworks [63]

ver

Zhang et al. [39]

ver

Zadenoori et al. [33]

ver

Broad literature review on applications of large language models in software engineering; motivates the lifecycle-wide view of AI-supported development. Shows hallucinations, verification, and evaluation as central problems and supports the importance of quality gates. Classifies AI-native Software Engineering as intent-oriented collaboration with AI teammates and supports the transformative perspective. Clarifies the distinction between classical model- or domain-specific language-based artifact generation and LLM-based generation. Present Codex as an early large language model for code generation and provide a foundation for the technical development of modern coding assistants. Describe Code Llama as a specialized model family for programming tasks and strengthen the evidence on domain-specifically trained code models. Introduce StarCoder as an open code model and support comparability and reproducibility in research on AI-based code generation. Present DeepSeek-Coder as a powerful code model and extend the technical foundation for code generation, code understanding, and repair. Describe Qwen2.5-Coder as a specialized model family for programming tasks and show progress in model performance and code understanding. Presents Codestral as a code-oriented language model and complements the model landscape for AI-supported software development. Describes GPT-4.1 as a powerful model with relevance for programming, context, and tool-use tasks. Describes GPT-5 as a current model generation with extended capabilities for programming, tool use, and agentic forms of work. Presents Gemini 2.5 Pro as a powerful model with relevance for complex development, context, and reasoning tasks. Describes Claude 4 as a model generation with relevance for programming, agent behavior, and long-context processing. Provides an overview of code generation with language models and classifies code generation as a central research field. Motivates harness engineering as a design task for agentic coding systems and emphasizes runtime environment, tool access, context, and control. Classifies harness engineering from the perspective of practical coding-agent use and shows the importance of technical and organizational embedding. Conceptualize AI Harness Engineering as a runtime substrate for foundation-model software agents and strengthen the technical grounding of the harness concept. Describes Amazon Q Developer as a product-oriented development environment and shows the integration of AI support into developer workflows. Describes Claude Code as an agentic development tool and strengthens the relevance of tool use, repository context, and developer control. Provides agentic functions in an AI-oriented development environment and shows the shift from assistance toward more integrated workflows. Describes cloud-agent functions for development tasks and complements the discussion of outsourced, agentic processing of software changes. Documents Copilot functions and shows the product-oriented embedding of AI support in IDEs, repositories, and development processes. Classifies AI-supported development as an AI-Driven Development Life Cycle and supports the lifecycle-wide perspective of the paper. Describes organizational capabilities for effective AI support and supports the role of platform maturity, data access, and clear guardrails. Classifies TuringBots as a development line of AI-supported software development and illustrates changes in tool landscapes and developer roles. Describes current trends in software development and supports the classification of AI as a strategic influence on development organizations. Emphasizes economic potential of generative AI in software development while also pointing to the importance of organizational implementation. Classifies AI tools in modern software development from a practice-oriented perspective and supports the view of AI as an integrated part of development platforms. Connects generative software development with human-AI teamwork and testable requirements and strengthens the link to requirements engineering and validation. Shows support for elicitation, validation, and specification analysis and demonstrates relevance for requirements engineering. Continued on the next page

28

Table 6: Selected research and practice sources on AI-driven Software Development (continued) Work

Cat.

Classification and relevance

Norheim et al. [73]

ver

Mavin et al. [74]

ver

Fischbach et al. [75]

ver

Wang et al. [76]

ver

Dau et al. [78]

ver

Kumar et al. [79]

ver

Gandhi et al. [80]

ver

Solovyeva et al. [81]

ver

Terragni et al. [3]

mki

Treude [8]

mki

Li et al. [41]

mki

Hamza et al. [7]

mki

Liang et al. [17]

mki

Sergeyuk et al. [18]

mki

Barke et al. [9] Vaithilingam et al. [10]

mki mki

Mozannar et al. [11]

mki

Russo [12]

mki

Khemka and Houck [13]

mki

Peng et al. [14]

pro

Cui et al. [15]

pro

METR [16]

pro

DORA [20]

pro

Hashimoto [69]

pro

GitHub [48]

pro

GitHub [19]

pro

Google [49]

pro

Shopify [50]

pro

The Verge [51]

pro

Pearce et al. [21]

sec

Sandoval et al. [22]

sec

Khoury et al. [23]

sec

Liu et al. [24]

sec

Analyze challenges in using large language models in requirements engineering, especially reproducibility, evaluation, and domain adaptation. Provide EARS as an approach for more precise, consistent, and testable naturallanguage requirements. Show how acceptance tests can be derived from requirements and support the mutual use of requirements and tests. Investigate the automatic generation of acceptance test cases from use-case specifications and strengthen the connection between specification and testing. Address mainframe modernization with specialized language models and show the relevance of AI for legacy analysis and transformation tasks. Investigate the automated validation of COBOL-to-Java transformations and emphasize verifiable migration artifacts. Address the translation of COBOL to Java and illustrate opportunities and limits of AI-supported legacy migration. Analyze PL/SQL-to-Java transformation as a case study of automated legacy-code translation and extend the evidence on AI-supported modernization. Describes software engineering as an increasingly collaborative human-AI process and supports the organizational perspective of the transformation model. Structures AI-supported software engineering conceptually and supports the terminological classification of different forms of support. Describe AI systems as possible teammates in software development and strengthen the perspective on role change and collaboration. Investigate human-AI collaboration in software engineering and complement the empirical perspective on acceptance, control, and division of work. Emphasizes usability and trust as acceptance factors and shows that tool quality alone is not sufficient. Documents different usage patterns across teams and projects and supports the need for processual embedding. Distinguishes exploratory and accelerating use and highlights different control needs. Shows differences between expectations and actual usage experience; adoption depends strongly on practical usability. Describes cognitive review effort for AI-generated suggestions and makes productivity measurement beyond raw suggestion acceptance necessary. Emphasizes organizational factors in the adoption of generative AI and shows transformation as more than a tooling issue. Identifies trust, transparency, and control as central factors and connects acceptance with governance. Reports substantial time gains in programming tasks with GitHub Copilot and supports assistive use in well-bounded tasks. Shows context-dependent productivity effects and underlines the importance of process and organizational context. Shows longer task completion times for experienced developers under AI support and points to review and integration effort. Connects software delivery performance, organizational practices, and AI use and provides an empirical reference point for transformation capability. Describes the stepwise adoption of AI tools in real development practices and supports the perspective of incremental adoption. Documents practical experience on AI use in large development organizations and supports the view of context-dependent productivity effects. Reports relationships between AI support and code quality and complements the discussion of productivity- and quality-related effects. Provides practical evidence for the use of AI in development processes and points to organizational scaling effects. Documents organizational expectations regarding AI use and shows that AI adoption also touches leadership, governance, and culture. Reports on Shopify’s AI-related organizational practice and complements the discussion of more mandatory forms of AI adoption. Finds vulnerable suggestions in security-critical scenarios and motivates security checks and approvals. Shows that LLM assistants can influence security decisions and that security risks can already emerge early. Shows that plausible AI-generated code can be insecure and that code generation does not replace security review. Shows that classical benchmarks can overestimate model quality and that projectspecific tests remain necessary. Continued on the next page

29

Table 6: Selected research and practice sources on AI-driven Software Development (continued) Work

Cat.

Classification and relevance

Ouyang et al. [25]

sec

Spracklen et al. [26]

sec

Zhang et al. [37]

sec

GitHub [64]

sec

Semgrep [66]

sec

Snyk [65]

sec

SonarQube [68]

sec

Trivy [67]

sec

Chen et al. [35]

eva

Xia et al. [36]

eva

Jimenez et al. [27]

eva

Yang et al. [28]

eva

Hong et al. [29]

eva

Wu et al. [30]

eva

Wang et al. [31]

eva

Zhang et al. [32]

eva

Sethupathy [77]

eva

Describes non-determinism as a challenge for reproducibility, verification, and controllability of generative systems. Analyzes hallucinated package names as a supply-chain risk and strengthens the importance of dependency checking. Shows systematic differences between model providers and points to the importance of reflected tool choice. Describes Advanced Security as a mechanism for code scanning, secret detection, and dependency checking and supports technical quality gates. Documents static analysis and rule-based code checking and supports the safeguarding of AI-generated code artifacts. Documents security checks for dependencies and code and strengthens the importance of automated security controls. Describes AI Code Assurance and supports quality assurance for AI-generated code contributions. Documents container, dependency, and infrastructure scanning and complements the technical safeguarding of build and deployment pipelines. Compares evaluation methods for AI-based code generation and shows the importance of suitable metrics and benchmarks. Shows strong results of large language models in automated program repair and points to increasing AI-based bug fixing. Introduces SWE-bench with more realistic development tasks and underlines the importance of project-related evaluation. Shows how language models can use files, tests, and development tools and extends classical assistance models toward agents. Describes coordinated agent roles for development tasks and structures more complex agentic development processes. Shows agent communication and coordination through conversational structures and extends agentic development environments. Provides an open platform for software development agents and strengthens reproducible agent environments. Provides an overview of autonomous LLM agents and classifies agentic systems as an independent research field. Describes Zero-Touch DevOps as a far-reaching automation approach and provides a reference point for agentic process automation.

Legend: beg = conceptual classification of AI-driven Software Development; mod = LLMs and code models in software engineering; har = harness, tool integration, and development environments; ver = related approaches to AI-supported software development; mki = human-AI collaboration; pro = productivity and empirical impact; sec = security, correctness, and supply-chain risks; eva = project-related evaluation and agentic systems.

30

Table 7: Example metrics for measuring productivity, quality, and governance in AI-driven Software Development Metric

Source

Lead Time for Git, CI/CD Changes Deployment Frequency CI/CD, deployment platform Change Failure Rate Incident and deployment systems Defect Density Issues, tests Test Coverage Vulnerability Rate Review Acceptance Rate Change Validation Rate Human Override Rate Autonomous Task Completion Rollback Rate Cost per Task Audit Coverage

Meaning Time from change to production.

Operationalization

Median from merge to successful production deployment per PR. Frequency of production deploy- Deployments per day, week, or ments. sprint. Share of failed deployments. Deployments with incident, rollback, or hotfix. Defects relative to change size. Defects per 1,000 changed lines of code or release. Test and coverage tools Degree of automated test coverage. Covered lines or code paths in percent. SAST, SCA, security Detected vulnerabilities. New findings per sprint, release, or tools 1,000 lines of code. Pull-request platforms Adoption of AI-supported sugges- Accepted AI suggestions relative to tions. all AI suggestions. Tests, CI/CD Changes verified before production. Share of changes with successful tests and quality gates. Agent and review logs Human interventions in AI Corrections, cancellations, or overworkflows. rides per agentic task. Agent logs Autonomously completed tasks. Agentic tasks without intervention up to successful merge. Deployment and release Reverted changes. Production deployments followed systems by rollback. API and usage metrics Cost per development task. Token, API, and runtime cost per ticket, task, or PR. Audit and logging sys- Traceability of AI-supported AI changes with audit trail, model, tems changes. user, and approval.

31

B

Illustrative Claude-Oriented Codebase Harness

This appendix complements the supplementary tables with an illustrative example of how an AI harness can become visible in a concrete repository structure. The example is not intended as a general standard. It focuses on a Claude Code-oriented setup and therefore places CLAUDE.md at the center as the main project-specific instruction file. The general idea can be transferred to other AI development tools, but concrete files and conventions remain tool-dependent. The appendix refers to a Claude Code-oriented setup. Claude Code supports project-level memory through CLAUDE.md. Such a file can contain shared project instructions, such as architecture notes, coding standards, or recurring workflows [82]. In GitHub-based development environments, workflow files under .github/workflows/ are typically defined as YAML files and can implement build, test, security, and release gates [83]. Architecture Decision Records provide a lightweight way to document architecture decisions and their rationale within the repository [84]. The repository itself can become part of the harness if it provides relevant context in a structured and retrievable form. This includes project-specific instructions, architecture and domain documentation, security and operations knowledge, source code, tests, quality scripts, and CI/CD workflows. Figure 4 shows such a structure in compact form. The highlighted entries denote Markdown files that can explicitly contribute to the harness by making project knowledge, tool rules, security requirements, or operational expectations available. my-software-system/ |– README.md |– CLAUDE.md |– .github/ | ‘– workflows/ | |– ci.yml | |– security-scan.yml | ‘– release.yml |– docs/ | |– architecture/ | |– overview.md |

| ‘– adr/*.md |– domain/ | |– glossary.md

|

| ‘– business-rules.md |– security/ | |– data-classification.md

|

| ‘– ai-guardrails.md ‘– operations/ | |– runbook.md

| ‘– incident-handling.md |– src/ | ‘– application source tree |– tests/ | ‘– unit, integration, regression, and security tests ‘– scripts/ ‘– quality, security, and AI-review scripts

Figure 4: Illustrative Claude-oriented repository structure for making an AI harness visible in a codebase. Highlighted entries denote Markdown files that explicitly support AI context, rules, domain knowledge, security requirements, operations knowledge, or review preparation.

The files shown do not constitute the entire harness, but only the part of it that is visible in the repository. A complete harness also includes the execution environment, access to tools, the selection and provisioning of context, permission boundaries, quality gates, logging, and human approvals. The repository structure therefore mainly ensures that relevant rules, domain information, and verification requirements become findable and reusable for AI tools. Table 8 describes the Markdown files highlighted in Figure 4. The descriptions are exemplary and should be adapted to the specific tool environment, architecture, domain, and governance 32

requirements of a project. Table 8: Exemplary purpose of Markdown files in the illustrative codebase harness Markdown file

Exemplary purpose in the harness

README.md

Provides the general entry point to the project, including system purpose, setup information, basic development commands, and references to relevant documentation. Defines project-specific instructions for Claude Code, such as architecture requirements, coding expectations, testing rules, security boundaries, and pull-request expectations. Summarizes the system architecture, central components, dependencies, deployment context, and design requirements that are relevant for AI-supported changes. Documents architecture decisions and their rationale so that AI tools and reviewers can understand why certain design decisions or boundaries exist. Defines domain terms and supports consistent naming, requirements interpretation, documentation, and generated code in line with the domain language. Documents central business rules and constraints that AI-generated changes should consider during analysis, implementation, and testing. Describes data categories, sensitivity levels, and handling rules for privacyand security-relevant development tasks. Defines project-specific guardrails for AI use, including restricted data, prohibited actions, required reviews, and rules for production-proximate changes. Describes operational procedures, typical failure patterns, recovery steps, and escalation paths that can support AI-assisted incident analysis and operations support. Describes how incidents are classified, analyzed, documented, and resolved, thereby supporting AI-assisted triage and post-incident learning.

CLAUDE.md

docs/architecture/overview.md

docs/architecture/adr/*.md docs/domain/glossary.md docs/domain/business-rules.md docs/security/data-classification.md docs/security/ai-guardrails.md docs/operations/runbook.md

docs/operations/incident-handling.md

In this example, CLAUDE.md serves as the primary tool-specific instruction file. Claude Code can use such project-specific instructions as persistent guidance for AI-supported development work [82]. The file can describe architecture boundaries, coding conventions, testing expectations, security requirements, and review rules. Figure 5 shows an illustrative example. It is intentionally generic. It reflects typical categories of project-specific instructions, but it is not a tool-independent standard. Project Instructions Architecture context. Use docs/architecture/ and existing Architecture Decision Records before proposing structural changes. System boundaries. Respect the separation between the central application areas. Do not move responsibilities across these areas without an explicit rationale. Coding conventions. Follow existing coding conventions, naming patterns, and domain terms. Prefer consistency with nearby code over introducing new style variants. Tests. Add or update tests for functional changes. Use existing unit, integration, or regression test structures where possible. Quality checks. Run available quality and security checks before proposing a pull request. Report which checks were executed and which checks remain open. Security relevant changes. Do not change authentication, authorization, encryption, dependency handling, deployment settings, or permissions without explicit human review. Change size. Prefer small and reversible changes on separate branches. Do not mix refactoring, feature work, and security relevant changes in one proposal. Pull request summary. Before proposing a pull request, summarize the affected files, executed tests, remaining risks, and assumptions.

Figure 5: Illustrative example of project-specific AI instructions in CLAUDE.md.

The surrounding repository structure provides additional context and control. Architecture documentation and Architecture Decision Records support design consistency. Domain documen33

tation helps align generated changes with domain language and business rules. Test directories, quality scripts, security scans, and CI/CD workflows define the verification path for AI-supported changes. Operations documentation connects development work with deployment, incident handling, and production-related constraints. The .yml files in the workflow directory are not Claude instruction files. They represent CI/CD and automation mechanisms through which build steps, test execution, security scans, release procedures, and further quality gates can be defined. In the harness, they therefore contribute to verification and control, not to prompt or instruction management. Such a structure does not make the codebase autonomous. It creates a controlled working environment for AI-supported and agentic development. AI tools can retrieve relevant context, propose changes on branches, execute tests, and prepare pull requests. The harness keeps these activities connected to quality gates, permission boundaries, audit logs, and human review. The example therefore illustrates only one possible form of a codebase harness. In practice, it must be complemented by operational mechanisms. These include sandboxes, branch rules, CI/CD gates, tool permissions, audit logs, cost control, and defined approval steps. Only the combination of these elements turns a documented repository structure into a controllable harness for AI-assisted and agentic development work.

34

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