# Why software factories are making a comeback in the AI era How AI-powered software factories are transforming development processes - **Source:** [Latest news](https://brifing.si/source/77d15218-219f-472d-bf40-31b5646d2942) - **Published:** 2026-08-11 - **Topic:** [Software & Engineering](https://brifing.si/c/engineering) - **Original article:** - **On Brifing:** https://brifing.si/s/064a3d62-bcd8-452b-954a-9ea618c1b45e ## The rebirth of software factory concept Software factories were popular in early 2000s but faded over time. Microsoft discussed this concept in 2008. With AI's code generation and management capabilities, this concept has resurfaced. CloudBees CEO Moritz Plassnig states that finding engineers was difficult and costly traditionally. AI-based solutions are eliminating this bottleneck in software development pipelines. ## AI's role in software development Foundation AI models and associated agents are automating the software development lifecycle. According to Jaymin West, many companies have been building similar structures in the last 18 months. Companies like Anthropic, Cognition and OpenAI are working on identical models. AI is shifting developers' roles from writing code to deciding what gets built. ## Components of modern software factories West outlines that a typical software factory consists of six main components. These systems enable validation and updates of hundreds of thousands code lines daily. Plassnig mentions humans can no longer monitor all alerts. AI-powered factories can manage changes occurring every few minutes efficiently. ## Approach of industry leaders Companies like Google, GitHub and OpenAI are adopting software factories. West notes all these companies are converging on the same structure. They're restructuring their engineering frameworks. Ziff Davis' 2025 copyright lawsuit against OpenAI reveals legal challenges in this domain. ## From customer experience to product Plassnig illustrates how a customer support agent's idea quickly transforms into product. Like car factories, prototypes get created first then mass production follows. Software factories reduce this process from days to hours. Product, engineering and IT teams later evaluate the output collaboratively. ## Verification challenges and solutions West states code generation has become easy and cheap, but verifying correctness remains a major engineering problem. 1Password's research shows AI fails to properly patch software flaws 74% of the time. Software factories aim to manage this process without compromising quality standards. ## Managing daily software updates Many organizations now release software updates daily. Plassnig emphasizes the importance of monitoring metrics like memory usage and error rates. Traditional methods become inadequate for managing this volume of changes. AI-based systems can automatically monitor and optimize these processes. ## Future of software industry Software factories are revolutionizing development processes but aren't magic wands. West stresses the importance of verification processes. AI-powered systems are transforming developers' roles rather than eliminating them. This transformation presents both opportunities and new challenges for software companies. ## Sources covering this story - https://www.zdnet.com/article/why-software-factories-are-back-ai/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._