Artificial intelligence is rapidly transforming software development, and Microsoft CEO Satya Nadella says the shift is well under way at his company. Speaking at Meta’s first-ever LlamaCon AI developer conference in Menlo Park, California, Nadella revealed that as much as 30% of the code in Microsoft’s repositories is now generated by AI systems.
AI Becomes a Co-Developer
“I’d say maybe 20%, 30% of the code that is inside of our repos today and some of our projects are probably all written by software,” Nadella told Meta CEO Mark Zuckerberg during a public conversation. He added that the proportion is “steadily going up,” signalling a broader industry shift toward automation in programming.
Zuckerberg, in turn, said he didn’t have a precise figure for Meta’s AI-written code, but he estimated that within the next year, “maybe half the development is going to be done by AI, as opposed to people.”
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Microsoft and Meta, two of the largest employers of software engineers globally, are the latest tech giants to highlight AI’s growing role in coding. Since the explosive rise of generative AI tools such as ChatGPT in late 2022, companies have increasingly relied on AI not only for tasks like customer service or marketing, but also for core software engineering.
Google CEO Sundar Pichai revealed in October that over 25% of new code at the company is now AI-generated. Shopify CEO Tobi Lütke recently told staff that any request for new hires would need to justify why AI couldn’t perform the role. Duolingo CEO Luis von Ahn also announced a gradual shift toward AI over human contractors in some departments.
The Future of “Vibe Coding”
The movement toward AI-driven software creation is also sparking acquisition interest. Reports earlier this month suggested that OpenAI is in talks to acquire Windsurf, a startup that enables “vibe coding” — a system where entire programmes are created from just a few lines of natural language input.
The dream, shared by Nadella and Zuckerberg, is that with AI as a development partner, companies can build software faster, cheaper, and at higher quality — a vision that may fundamentally reshape the role of human developers in years to come.
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