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Why AI changes the model

The change that enables this proposal is economic: AI could reduce the cost and time of turning an intention into an executable commitment, and of carrying that commitment out. Its role includes interpreting, specifying, prototyping, investigating, producing, coordinating, evaluating, and supporting or making decisions. That is the central hypothesis. Buying in advances, choosing scope and investment, pooled capacity and delegation are ways of organizing and using that possibility.

Software delivery today showed the cost of clarifying and deciding as part of delivery, even between two people. If each small purchase requires a lot of work to understand, offer, coordinate and accept, splitting purchases is unattractive for both sides. AI could change that relationship by reducing the effort of the whole cycle, making it useful and sustainable to buy a smaller advance before committing to the next. The mechanisms below explain how that could happen; they do not assume it has already happened for any demand.

Automation is already part of software production. Compilation, automated tests and deployment routines carry out operations without a person running every step. The relevant change is the widening of the kind of work that can be entrusted to a system.

Following a defined procedure is different from running a cycle that requires choices along the way. In the second case, a system receives an objective, proposes actions, uses tools, examines the results and adjusts its attempt. Consider the difference between running an existing test and investigating why it failed. The first is a defined procedure. The second may require finding code, forming an explanation, changing an implementation and running the check again. Being able to delegate part of that sequence extends automation into activities that require choices during the work.

This depends on adequate information, tools and conditions. An incomplete description can lead to a plausible solution that meets a wrong interpretation. Having execution capability does not, by itself, settle what should be done.

Assistance, cycles of work and delegated decisions

Section titled “Assistance, cycles of work and delegated decisions”

A person can use AI to clarify a doubt, draft a text or suggest a change, while still making each decision and folding the results into their own work. Another possibility is to give a system a bounded objective and let it choose actions, use tools, examine results and correct its attempt. What changes is how much of the direction is delegated.

Suppose a barbershop asks for online booking. A system can investigate how the existing calendar represents availability, prepare a proposed interaction, identify conflicts and test alternatives, with the output of one action feeding the next. The delegated work can include discovering what information is missing and looking for it within the context and access available.

Decisions can be delegated too. Choosing a technical approach, accepting an output and authorizing continuation within a budget are different choices, which can have different scopes of delegation. The ability to produce a solution does not automatically grant authority over all of them, but that authority can be granted in advance, allowing work to move on without human confirmation at every step.

Assistance, autonomous execution and delegated decisions can coexist. A hybrid operation can significantly change the viability of the service; a demand can also go through the whole flow without human intervention during execution, when objective, context, evaluation and mandate allow. Engineering defines those conditions, keeps the system observable and prepares for deviations.

Learning becomes part of the capacity offered

Section titled “Learning becomes part of the capacity offered”

The first relevant effect may come before implementation. Interpreting an intention, asking questions, comparing alternatives and producing a prototype take work. If part of that effort can be done usefully and repeatably with AI, a service could offer a first advance with a different composition of cost and time.

In the barbershop example, the initial intention mixes booking, reminders and advance payment. A purchased discovery clarifies which parts are needed, produces requirements and lets an interface be tried. The technical design examines the existing calendar and the integrations. The outputs serve two purposes: preparing the delivery, and producing information to decide what is worth buying next. The provider can then offer to implement booking, with an alternative that includes reminders. The customer can choose one, adjust the scope, or close the discovery with the agreed artifacts.

The price of continuing follows from an offer supported by the understanding available and by the risk the provider is willing to take, not from perfect knowledge of every future cost. The information produced bounds the work and its risks; the prepared capacity makes it possible to assess how to carry it out. Together they support an offer the provider can stand behind, rather than a forecast the customer has to manage.

Cheaper learning can also change how much is worth clarifying before each choice. Instead of specifying the whole solution in advance to justify the effort of preparation, the parties can produce enough information to compare immediate alternatives and go deeper into the one chosen, while still allowing extensive discovery where risk or dependencies require it. Simplifying the solution can reduce work and price; leaving out needed detail can raise uncertainty and the cost of taking it on.

The historical change is one of reach and viability

Section titled “The historical change is one of reach and viability”

The argument does not need to name a product or a date as the start of the model. A service relationship can be conceived long before operating it becomes affordable for many classes of demand. What can change over time is the cost of interpreting an intention, experimenting, producing, evaluating and deciding with sufficient quality.

The relevant historical contrast is between the costs of doing the same route at comparable quality. With a composition that depends on human work to interpret, specify, prototype, coordinate and evaluate, a demand may require preparation and follow-up out of proportion to the value the customer places on it. Bringing AI into that work could shift the boundary: some demands that could not sustain the relationship might come to sustain it. That is a proposed causal relation, not a retrospective measurement of the market.

So the thesis does not depend on claiming that nothing similar was possible before. Paid discovery, staged commitments and shared specialists can exist under other economic conditions. What has to change for the hypothesis to hold is the range of demands for which the combination works on a recurring basis. The model sets no boundary of impossibility two or five years ago.

Technical capability is not economic viability

Section titled “Technical capability is not economic viability”

It helps to keep several thresholds apart: conceiving the service, demonstrating one execution, achieving reliability, sustaining its economics, and winning repeated adoption. A technical possibility can exist for years without crossing all of them.

What is being investigated is whether broader cycles of interpretation, production, evaluation and decision could make the service viable for more demands. The market hypothesis begins where technical capability combines with engineering, commitments and usable economic conditions. The 2030 horizon frames that investigation, allowing for earlier signs and different paces of adoption.

Engineering and evaluation make delegation usable

Section titled “Engineering and evaluation make delegation usable”

A task becomes suitable for delegation when there are conditions to produce it, recognize whether it is adequate, and handle unsatisfactory results. Context, tools, tests, criteria and observation are part of the capacity the system delivers, and engineering builds and maintains that composition.

Evaluation can be carried out by systems too. Checks of the environment, tests, comparison with criteria and specialist judgments can support automatic continuation or the routing of a question. Having control does not require every hand-over to be a human review; the design has to consider the consequences of error, the quality of the signals and the possibilities of recovery. A system can notice that an implementation breaks a rule, find the cause, correct it and evaluate again. It can also recognize that it lacks the information or authority needed, and route the question to another system, a specialist function or a person.

Responsibility remains identifiable. Delegating a decision does not remove the conditions under which it was authorized, nor does it turn a plausible output into an accepted delivery.

From executing a task to providing a service

Section titled “From executing a task to providing a service”

A provider can organize resources, context, criteria and policies to serve new requests without rebuilding its operation for each one. If context becomes cheaper to prepare and recover, it becomes worth investigating how parts of the work can be distributed across pools of specialists and agents serving many demands, as long as the cost of transferring and checking understanding fits within the gain. Pools are not an invention attributed to AI, nor a mandatory consequence; they are an organizational possibility that may become viable when continuity across executors costs less.

The customer can interact through an assisted conversation or a self-service interface, and in either case has to understand what the first advance delivers, its conditions and how to decide on continuing. The design allows paid discovery and design, a later offer to implement, partial decisions, and also a broader mandate under which the customer authorizes choices about continuing within agreed conditions. There is no need to make every activity a new purchase or every decision a wait for a person.

The economics must count work, decisions and waiting

Section titled “The economics must count work, decisions and waiting”

The complete cost includes preparation, human and computational resources, evaluation, coordination, corrections and later obligations. The speed of generating an output does not say how much it costs to fulfil the commitment. The customer’s effort to provide context, choose between alternatives and follow the service also counts.

AI could affect more than one part. Investigations and prototypes could lower the cost of information; delegated decisions could reduce waiting; reused configurations could spread preparation across demands. These are candidate mechanisms for making the service viable, and failures, excessive review or difficult integration can cancel them out. A discovery that ends without construction belongs in the analysis too: if it produced the clarification that was bought, it may be a useful delivery, and its revenue and cost cannot disappear because nothing was built.

The hypothesis adopts no universal multiplier; different demands may need different amounts of preparation, supervision and correction. The economic question is whether the composition allows offering a useful commitment, with acceptable quality and sustainable cost, for an identifiable class of demand. Small demands make the barrier of preparation most visible, but the hypothesis also reaches decision cycles within larger and more complex solutions. Lower internal cost does not mean an automatically lower price, nor does it prove willingness to buy.

The hypothesis is that AI will make it economically viable to consume growing portions of software delivery as an on-demand service. The consumer will be able to arrive with an intention, buy useful advances and use the information they produce to make new commitments, directly or through delegated decisions, while an organized capacity of people and systems carries out the delivery.

The causal order matters. AI widens the work that can be done computationally; engineering makes it usable in cycles of learning, production and decision; a change in complete cost and latency could widen the set of demands that can be served; the organization and commitments of the service let that capacity be consumed. Adding gates or splitting the invoice does not, on its own, produce the economic change.

The operation can be hybrid or autonomous to different degrees. AI has a causal role in the hypothesis without imposing a brand, an architecture or a fixed percentage of automation. The organizing mechanisms can also describe existing human operations, and that general applicability does not prove the economic transformation being investigated. The organizational and economic consequences discussed here are conditional hypotheses; they assume neither universal productivity gains nor fully autonomous software development.

Next: the abstraction problem.

Software Delivery as a Service is a proposed model by Renan Deves and Marcelo Scheidt, Independent Researchers. See the paper for citation and license.