Big in big tech: AI agents now code alongside developers
Big Tech is doubling down on AI-powered coding agents—intelligent tools that go beyond assisting developers to actively collaborating with them. This week, Microsoft, Google, and OpenAI rolled out major upgrades that mark a shift in how software is built.
These agents don't just generate code—they fix bugs, add features, and increasingly understand developer intent. The result? Compressed timelines, reduced manual grunt work, and the beginning of a fundamental shift in how programming teams function.
Investors see software development as a high-fit application for
agentic AI
, or autonomous agents that can plan, execute, and self-correct across tasks. Coding, they believe, may be the killer use case.
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The week's biggest announcements:
Microsoft:
At its Build developer conference, Microsoft
unveiled a new GitHub Copilot agent
—a more proactive version of the AI tool that can now autonomously fix bugs and implement features. Instead of simply suggesting code snippets, the agent understands goals and acts on them.
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OpenAI:
A week earlier, OpenAI
introduced an upgraded version
of its coding model Codex. The new agent is designed to handle multiple programming tasks in parallel—bringing multitasking capabilities to code generation.
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Google DeepMind:
Released AlphaEvolve
, an advanced coding agent capable of tackling mathematical and computational problems. The system doesn't just generate code—it validates solutions using automated evaluators, reducing errors and hallucinations.
Why this matters
Coding appears to be the breakout application for agentic AI. Unlike creative writing or visual generation, software can be tested immediately—a program either runs or it doesn't. This gives developers a clear feedback loop, allowing faster refinement.
However, these tools still struggle with subtle logic errors and hallucinations. As they generate more code, the risk of flawed output also grows. Still, the productivity gains are substantial.
The shift is global
AI now writes a third of Microsoft and Google's code, according to the companies. Indian startups are following suit.
As reported by ET in April
, AI agents are generating between 40–80% of code at some early- and growth-stage companies, using tools like ChatGPT, Claude, and Gemini.
From prototypes to production systems, AI-written code is speeding up delivery cycles and changing how software teams operate—possibly forever.
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