In many teams the agents now write most of the code. This course is about what that does to the organisation around them: what a “task” is when one engineer supervises several agents, how teams form around coordinators and workers, why the reviewer is the real constraint, what happens to juniors, how to hire and evaluate, how to put tokens next to headcount for a CFO, and a 90-day plan to reorganise without breaking production.
Built from primary sources: Anthropic’s R&D Automation Index, xAI’s Team Bots post, Cursor’s Projects and Rollouts announcements, OpenAI’s DevDay recap and misalignment report, METR, DORA 2025, Faros AI, GitClear, Stanford’s Canaries paper and 2026 AI Index, SignalFire, Levels.fyi and Anthropic’s price list. Research current to 13 October 2026.
Numbers that come from a vendor describing its own product are labelled vendor-reported. Numbers from a study carry the study’s population and date, because every one of them has a caveat that matters. The two worked models (modules 3 and 7) state every input and were computed before publishing; change an input and the conclusion may change, which is the point of a model.
Callouts labelled My position are argument, not sourced fact. I run engineering organisations; I am writing for people who do the same.
For thirty years the unit of engineering work was the ticket. One engineer picked it up, wrote the change, opened a pull request, someone else reviewed it, and it merged. Generation was the slow step. Everything downstream of it, from review to release management, was sized on the assumption that a person could only produce so much per day.
That unit is gone in any team that has adopted coding agents properly. The new unit is the delegated run: a prompt, a context bundle and a harness go in; an agent works for minutes to hours; a pull request, a report or a question comes back. The engineer’s job inside that unit is to specify, supervise and verify. Anthropic’s own scale for this, borrowed from Epoch AI, calls the relevant level “AI leads”: the model “can complete most of the task end-to-end from a high-level prompt, while the human supervises.”
This was already the dominant mode in 2025. Anthropic’s Economic Index analysis of Claude Code (28 April 2025) classified 79% of Claude Code conversations as automation rather than augmentation, against 49% for Claude.ai, and 43.8% as “directive”, meaning the task was completed with minimal user interaction. The terminal product was a delegation product from the start. Eighteen months later the coordinator products in module 2 made delegation the default shape of the whole workflow.
| Ticket (2015–2024) | Delegated run (2026) | |
|---|---|---|
| Who specifies | PM or engineer, often loosely; the engineer fills gaps while coding | The engineer, precisely, up front; gaps become agent guesses |
| Who generates | The engineer | One or more agents, in parallel |
| Who verifies | A peer reviewer, plus CI | The supervising engineer, review bots, CI; a peer only for higher tiers |
| Cycle time | Days | Minutes to hours per run; many runs per day |
| Typical failure | Late, or wrong because the spec was wrong | Plausible but unverified; quietly relaxed spec; duplicated code |
| Unit of cost | Engineer-days | Tokens plus supervisor-minutes, dominated by the minutes (module 7) |
“Claude ‘leads’ 26% of Anthropic’s AI R&D work,” up from under 1% in February 2026. “The share of work at or above ‘AI collaborates’ is above 90%.” Claude is not “operating fully autonomously for any measured subset of AI R&D work.” Method: each week of July 2026 Anthropic sampled 20% of staff in its model-R&D departments, producing about 15,000 tasks organised into a 542-node tree; a Claude judge assigned the automation levels. On its most-used internal platform, “approximately 30,000 agents” were doing research and engineering work at once.
Read the caveats before you repeat the headline. The 26% is Anthropic’s own R&D, measured by Anthropic’s own model, on a frozen task basket; the judge agreed exactly with human raters 59% of the time, which Anthropic notes is higher than the 35% human-to-human agreement. It is a prototype, and Anthropic says so. It is not the share of work agents lead in a typical company. What it does establish is the slope: from roughly zero to a quarter of the work in six months, inside the organisation best placed to make this work.
“The Bot steered a Cursor Project that orchestrated hundreds of Cloud Agents,” “helping a five-person team ship more than 100 PRs a day and launch Team Bots in a few weeks.” The engineering bot sits in the project’s Slack channel, connects to Notion, Linear, Hex, Datadog and Cursor, triages bug reports, creates tickets and launches Cloud Agents for well-defined fixes.
Do the arithmetic xAI did not. One hundred PRs a day across five people is 20 PRs per person per day. An eight-hour day gives 24 minutes per PR if every human looks at every one, with no meetings and no writing of their own. Nobody reads 20 pull requests a day properly. So either most of those PRs were not human-reviewed, or what was “reviewed” was something other than the diff: a test result, a coordinator’s summary, a bot’s verdict. That single number contains the whole organisational problem this course is about.
The third number is Google’s. Sundar Pichai said in April 2026 that 75% of new code at Google is AI-generated, up from 25% in 2024 and 50% in the autumn of 2025, and that engineers review and approve all of it (Semafor, 24 April 2026). Generation share tripled in two years. Review, on Google’s account, is holding. Whether it is holding because Google has the tooling or because “review” has quietly changed meaning is the question every CTO should ask of their own org, not of Google’s.
When generation was the slow step, review capacity scaled with it for free: one engineer produced about what one engineer could review. Google met the limit first, with mechanical refactoring tools that could produce thousands of changes at once. Its large-scale-change process exists because, as the Chromium OS guide to large-scale changes puts it, “review cost often being a significant factor” in the total cost of a change, the team must prioritise the changes with the highest value. Agents put every team in Google’s 2010 position: generation is cheap, and review is the bill.
The clearest public statement of the problem is the email a developer at a twelve-year-old codebase sent to Boris Cherny, who created Claude Code at Anthropic. Cherny published the exchange on X on 10 and 11 September 2026 (the local course What to Do About Slop reads it line by line). The developer’s thesis, in his words: “It costs more time to determine if their approach is wrong than it did for them generate it.”
“I think there is room for both.” “Prototypes and other throw-away code can be treated as totally black box. If you’re going to throw it away anyway, and if the blast radius of it breaking is low, it doesn’t need to be perfect.” “Production code written by Claude should have a higher bar than if it was written by a human.” What Anthropic runs to hold that bar: “lots of lint rules, lots of tests, Claude-driven end to end tests, Claude-powered fuzzers running daily, automated code reviews and security reviews, automated code refactoring, and so on.”
Two things in that reply are organisational design, not product advice. First, the split is by disposability and blast radius, both properties of the change, neither a property of who or what wrote it. That is the basis for the review tiers in module 8. Second, the head of the product says his product’s output needs a higher bar than a person’s. If the vendor says that, your policy should not say less.
The slop course offers a working definition worth adopting as policy language: slop is output produced faster than the receiving system can verify it. It is a rate problem, not a quality problem. The same change is slop or not depending on the capacity that exists to check it. That is why “the code is fine” and “this is slop” are both true in the same standup, and why the fix is organisational rather than a better model.
The honest unit of work is the verified change with a named human owner. Count runs started and you will build a token furnace. Count PRs opened and you will drown your reviewers and then stop reviewing. Count merged changes and you will reward whoever merges fastest. The only count that survives contact with a coordinator fleet is changes that passed the verification their tier requires, attributed to the person who is accountable if they are wrong. Every later module assumes that unit.
If your team’s pull-request count doubled next quarter, what would you need to see before calling it good news? My list: defect escape per verified change flat or down, review latency flat, no rise in the share of changes merged without substantive review, and cost per verified change down. If you cannot produce those four numbers today, module 6 is where to start.
Between 10 and 29 September 2026 four companies shipped the same abstraction: a long-lived coordinator that does not write code, a pool of workers that do, and a surface where a human approves what comes back. The details differ in exactly the places an org designer should care about.
| Product | Shipped | Coordinator | Unit of parallelism and isolation | Acts without a prompt? |
|---|---|---|---|---|
| Cursor Projects | 10 Sep 2026 (beta) | Plans, delegates to implementation agents, brings finished work back for review; “doesn’t write code itself” | Project runs on its own cloud machine; spins up a local agent when something must run on your computer | Yes: can subscribe to a Slack channel, a schedule or your PRs |
| Claude Code Projects | 17 Sep 2026 (beta) | One conversation that coordinates threads and shows which are ready for review | Each thread is a Claude Code cloud session on its own branch with its own copy of the repo; threads watch their PRs, push fixes when CI fails and answer review comments. Enforced limit of 200 new threads per day | Threads act on their own PRs; coordinator acts within the project |
| OpenAI Codex (DevDay) | 29 Sep 2026 | Codex on computer, phone or cloud; an /agents view tracks several tasks; Agents API (public beta) offers the hosted harness | Codex Cloud tasks keep running with the laptop closed; reusable development environments with “approved settings and permissions” | Automatic reviews “take a first pass in the cloud while you’re away”; Codex Security Cloud scans on a schedule |
| xAI Team Bots | 28 Sep 2026 (public beta, Teams and Enterprise) | A shared bot with a role; the engineering bot triages, creates tickets and launches Cursor Cloud Agents for well-defined fixes | Delegates to Cursor’s cloud agents; per-user memory, shared skills; each teammate’s use counts against their own allowance | Yes: lives in the project’s Slack channel |
Add a fifth, less finished pattern: Claude Code’s agent teams, documented as experimental and off by default. One session leads, teammates run in their own context windows and coordinate through a shared task list with dependencies. The docs carry two warnings that matter for org design: agent teams “add significant token cost”, and they “don’t isolate teammates in worktrees, so each teammate should own a separate set of files.” That is a topology whose isolation is a convention, not a mechanism.
Vendor numbers, labelled as such: Cursor says new users of Projects merge 30% more PRs and that users who primarily use Projects merge six times as many. No baseline, cohort size or window is published. Treat it as evidence that the product changes behaviour, not as a forecast for your team.
A coordinator that can read a Slack channel, act on a schedule, spawn hundreds of workers and open pull requests is not a tool. It is a service with authority. The product launches do not tell you who in your organisation owns it, and the default, nobody, is the worst answer. Three ownership models are workable:
| Model | Who owns it | What it may trigger on | Where it fits | What goes wrong |
|---|---|---|---|---|
| Per-engineer coordinator | Each IC runs their own project | Their own PRs and tasks | First 90 days; small teams; high-trust codebases | Ten coordinators, ten harness variants, no shared learning; review load lands on peers unannounced |
| Team coordinator | The tech lead, with a named deputy | The team’s channel, its PRs, its schedule | Most product teams of 5–10 engineers | The lead becomes the review bottleneck unless tiering (module 8) is in place |
| Platform-owned fleet | A platform team that already runs CI and deploys | Org-wide triggers: dependency bumps, migrations, security findings | Orgs with a working platform team and a harness repo | Blast radius is the whole monorepo; a bad policy ships everywhere at once |
Start per-engineer, land on team coordinators, and only run a central fleet if your platform team already owns CI, deploys and on-call. Whatever the model, the coordinator gets what any service gets: an owner, an on-call, a budget, a changelog and an audit log that answers “what did it do last night?” If your org cannot answer that question for every coordinator it runs, you do not have a topology. You have a liability with a Slack handle.
Cherny’s rule in module 1 is per change. A topology multiplies it. Four isolation primitives appear in the table above: a branch plus a copy of the repo per thread (Claude Code Projects), a dedicated cloud machine per project (Cursor), an approved environment with fixed permissions (Codex), and no mechanical isolation at all (agent teams). The question for each is the same three-part one: what can the coordinator and its workers read, what can they write, and what can they trigger. Credentials should be scoped to the coordinator as a service principal, never borrowed from the engineer who set it up.
An agent in reinforcement-learning training reached a public chatbot from inside a “network-isolated” sandbox by tunnelling queries through DNS. OpenAI’s safety case had assumed the model could not reach the live internet. Monitoring flagged the behaviour within 15 minutes and a person began reviewing three minutes later, but the run was not stopped automatically and was killed about two and a half hours after that. OpenAI paused training, evaluation and tool-use inference for its most capable models until the gap was validated as fixed, and added blocking controls “at two independent layers.”
Three lessons travel directly to a product org. Egress is enforced by the network, not requested of the model. The automatic stop is the control that matters; a monitor that flags in 15 minutes and a human who takes 2.5 hours to pull the plug is a 2.5-hour incident. And the sandbox your coordinator runs in is your blast radius; a worker with a production database credential and a Slack trigger is one bad plan away from an outage.
Anthropic’s disclosure in the same index shows what review of agent actions looks like at fleet scale: 100% of agent actions pass through an online monitor before execution, 0.002% of more than a billion August decisions (about one in 47,000) were blocked, roughly 100,000 transcripts are flagged each week and about 50 of the highest-priority flags are escalated to human review. The review of agent behaviour is itself automated, with humans on the exceptions. That is the shape your own review function will take; the choice is whether you design it or discover it.
Read: which repos, channels, tickets and dashboards, and does that include customer data? Write: which branches, which environments, and can it merge or only propose? Trigger: what events start a run with no human in the loop, and who gets paged when one goes wrong? Write the answers in the coordinator’s own config and review them when the model or the harness changes.
The products all keep a human-as-coordinator surface: Claude Code Projects’ overview pane shows which threads are ready for review; Codex has the /agents view; Cursor’s merge approvals show the commit subject and message the agent chose. Use that mode by default for ambiguous scope, cross-team changes, anything touching money, authentication or data deletion, and the first 90 days of adoption (module 8).
The hand-off test for letting the bot coordinate without you: the task has a machine-checkable definition of done, a rollback you have exercised, and a blast radius you would accept unreviewed. If any of the three is missing, a human stays in the coordinator seat. That is not caution for its own sake. It is the only way to keep the review bill from module 1 from arriving all at once.
Name the person in your organisation who could tell you, this morning, everything a coordinator did overnight: what it read, what it wrote, what it triggered and what it cost. If there is no such person for each coordinator you run, the next incident review will begin by establishing who was supposed to know.
Three inputs. A is the number of agents an engineer supervises. P is the number of mergeable changes each agent produces per day. R is the number of changes that engineer can review properly per day. Verified throughput per engineer is the smaller of production and review: min(A×P, R). When A×P exceeds R, the difference is queue growth per day, and a queue in front of a review gate turns the gate into a formality.
R is the input people refuse to estimate, so anchor it. SmartBear’s study of a Cisco team is still the most-cited measurement of human review: review no more than 200 to 400 lines at a time, over 60 to 90 minutes, which “should yield 70–90% defect discovery,” and defect density drops significantly at inspection rates faster than 500 lines per hour. Take three hours of review a day, which is two sessions and more than most seniors give, and 20 minutes per 150-line agent change. That gives R = 9. Cross-check: 400 lines an hour for three hours is 1,200 lines, which at 150 lines a change is 8. The two anchors agree within one change.
| Agents (A) | P = 2 changes/agent/day | P = 3 | P = 4 |
|---|---|---|---|
| 2 | 4 produced, 4 verified | 6 produced, 6 verified | 8 produced, 8 verified |
| 3 | 6 produced, 6 verified | 9 produced, 9 verified | 12 produced, 9 verified, queue +3/day |
| 4 | 8 produced, 8 verified | 12 produced, 9 verified, queue +3/day | 16 produced, 9 verified, queue +7/day |
| 6 | 12 produced, 9 verified, queue +3/day | 18 produced, 9 verified, queue +9/day | 24 produced, 9 verified, queue +15/day |
| Break-even A = R ÷ P | 4.5 | 3.0 | 2.25 |
Inputs: R = 9 (three review hours a day at 20 minutes per change). Every cell is min(A×P, 9).
Now a team. Ten engineers, each producing two changes a day before agents: 20 changes a day against a review capacity of 90, which is why review never felt like the constraint. Give each engineer four agents at three changes a day: 120 changes a day against the same 90. The shortfall is 30 a day, 150 a week, and it compounds, because the queue also eats the reviewers’ production time. The team that bought the most agents is the one whose verified throughput falls first.
Three levers move the arithmetic. Tier by blast radius: if 60% of those 120 changes are low-blast-radius and go through bot review only, the human share is 48 against a capacity of 90, with headroom of 42. Pre-review by machine: if a review bot’s triage halves the human minutes per change to 10, R becomes 18 and the break-even at P = 3 moves from 3 agents to 6. Shrink the change: SmartBear’s curve is about lines, so smaller changes raise R directly. All three are organisational choices, not model upgrades.
For most teams in October 2026 the break-even is between two and four agents per engineer, and it is set by R, not by the token budget. Past break-even, each additional agent adds queue, not output, and the queue is where slop is manufactured. The first investment after buying agents should be in whatever raises R: tiering, review bots and smaller changes, in that order of payback.
No published study has measured teams running coordinator fleets at scale; the products are a month old. What exists measures the first wave, assistants and early agents, and it points one way: production up, verification strained.
| Study | Population and date | Finding | What it cannot show |
|---|---|---|---|
| METR RCT | 16 experienced open-source developers, 246 tasks, Feb–Jun 2025; published 10 Jul 2025 | Developers took 19% longer with early-2025 AI tools. Before: they forecast a 24% speedup. After: they still believed they had been 20% faster. | Small sample; mature repos the developers knew well; METR now labels it outdated |
| METR update | 57 developers, 143 repos, 800+ tasks; published 24 Feb 2026 | Returning developers: 18% faster (CI −38% to +9%). New developers: 4% faster (CI −15% to +9%). METR: developers are “likely more sped up” than in 2025, but the data is “only very weak evidence for the size.” | Selection effects: developers declined to work without AI and 30–50% skipped tasks; timing is unreliable when several agents run at once |
| Faros AI, 2025 | 10,000+ developers, 1,255 teams; July 2025 (vendor telemetry) | High-adoption teams: +21% tasks, +98% PRs merged, +91% review time per PR, +154% PR size, +9% bugs per developer. No significant correlation with company-level metrics. | Correlational; cannot separate deferred review from shallow review |
| Faros AI, 2026 | 22,000 developers, 4,000+ teams; March 2026 (vendor telemetry) | Epics per developer +66%, tasks +34%, bugs per developer +54%, incidents per PR more than tripled, median review time 5×, 31% more PRs merged with no review, code churn +861%. | Same vendor, same method; within-organisation comparison of low- and high-adoption periods |
| DORA 2025 | Nearly 5,000 technology professionals; 2025 report | About 90% use AI at work; over 80% believe it raised their productivity; about 30% report little or no trust in AI-generated code. AI adoption is associated with higher throughput and higher instability. | Survey; correlational; does not identify which practices separate stable teams |
| GitClear | 211 million changed lines, 2020–2024; published Feb 2025 (vendor) | Refactoring’s share of changed lines fell from about 25% in 2021 to under 10% in 2024; copy/pasted lines rose from 8.3% to 12.3%; 2024 was the first year copy/paste exceeded moved code. | Repository metric; duplication is a proxy for maintenance cost, not a measurement of it; no causal attribution |
Faros 2025: 98% more PRs merged and 91% more review time per PR. Total review minutes on a high-adoption team rose by a factor of 1.98 × 1.91 = 3.78. That is the review bill from module 1, measured. A year later the same vendor found median review time at 5× and nearly a third more PRs merging with no review at all, which is what a saturated gate does: it stops gating.
The 2025 result is the best evidence that the slowdown is invisible to the person experiencing it: developers were slower and believed they were faster. The 2026 update shows the sign has probably flipped for people who want to use the tools, and that the people who refuse to be measured without AI are now numerous enough to break the experiment. Neither study measures the thing this module models: an engineer supervising several agents, where METR itself says timing becomes unreliable.
Measure your own R before you argue with mine. Ask one senior engineer how many minutes they spent reviewing yesterday and how many changes they approved with real attention. Divide. If the answer is below 9, every number in this module gets worse for you; if it is above 15, ask what “real attention” meant.
Four sources, each with a different baseline. Do not blend them into one number; the baselines are the finding.
| Source | Date and data | Finding | Baseline |
|---|---|---|---|
| Brynjolfsson, Chandar & Chen, Canaries in the Coal Mine | Revised 12 Aug 2026; ADP payroll data through June 2026 | Employment of workers aged 22–25 in the most AI-exposed occupations “now stands 19% below” what less-exposed peers imply; experienced workers show “no comparable gap.” The gap “operates primarily through reduced hiring of young workers rather than increased separations” and “has widened steadily” since the first version (13%, August 2025). | Counterfactual from less-exposed occupations |
| Stanford HAI, 2026 AI Index | April 2026; Harvard Project on Workforce data | Employment of software developers aged 22–25 “has fallen nearly 20% from 2024” while older developers’ headcount grew. | 2024 peak, software developers only |
| SignalFire, State of Talent 2026 | 22 Jun 2026; LinkedIn-derived hiring data | New-grad and entry-level hiring “down roughly 65%” at the Tech Majors and “~76%” at early-stage startups. Overall Tech Major hiring is 25% below 2019; engineers are 55% of hiring, up from 46%, “not because engineering jobs are booming.” | 2019, all functions blended |
| Pragmatic Engineer, with Live Data Technologies | 9 Jun 2026; 28 large US tech companies | “In 2025, just one in 10 engineering hires at larger companies were recent grads, down from nearly three in 10 in 2023.” Intern intake is about half its 2019 level. AI-engineering openings rose 60% in a year against 7% for software engineering (TrueUp). | 2023 share of hires; 2019 intern intake |
The report says companies are “prioritizing experienced ICs rather than investing in training new grads and early-career hires,” that boilerplate, unit tests and routine debugging are “exactly the types of tasks that the Tech Majors have automated with AI,” and that junior engineers “can slow a team down” because the bottleneck has shifted from writing code to reviewing it.
Hold the mechanism in view. The Stanford paper finds the adjustment is happening through hiring, not layoffs, which means the pipeline is being switched off at the entrance rather than drained. SignalFire’s explanation is the one most CTOs would give if asked: juniors used to do the work agents now do, and a junior’s code adds to the review queue from module 3. Both are true. Neither makes the outcome inevitable.
A “$100 million commitment” to “train 10,000 Frontier Deployed Engineers (FDEs) by the end of 2027,” through a multi-day in-person phase and a 12-week residency in which engineers lead a real Claude use case at their own organisation. Anthropic’s rationale: “the people with the skills to make it work inside a real business have become the hardest talent to find.” First cohorts come from Accenture, Bain, Capgemini, Commonwealth Bank of Australia, Deloitte, McKinsey, Morgan Stanley and Novo Nordisk.
Put those two facts next to each other. The industry stopped hiring the people it used to train, and the leading model vendor is now spending nine figures to train deployment engineers because it cannot find them. The skill in shortage is not writing code. It is making agents work inside a real codebase, which is precisely the skill an apprenticeship built on supervision would produce.
The junior collapse is a decision, not a law of the new economics. SignalFire’s reasoning holds only if juniors are hired to write code. Hire them to verify it and the arithmetic flips: a junior who runs three agents under a senior’s harness and owns the verification of their output raises the team’s R instead of consuming it, and learns the codebase faster than one who writes 200 lines a week. The firms that keep an entrance open will own the mid-level market in 2029, when everyone else discovers that you cannot hire a senior verifier who was never a junior one.
| Months | What they run | What they verify | What they own | Exit test |
|---|---|---|---|---|
| 1–3 | One agent at a time, on tier 0 and tier 1 changes, inside the team harness | Every change they ran, with a written verification note; a senior re-verifies 100% | Nothing in production | Catches two of three planted defects in a review exercise |
| 4–6 | Two to three agents on tier 1 changes; a share of the team’s review-bot triage | Their own output plus a weekly sample of peers’ agent output; senior spot-checks 25% | One harness file (a CLAUDE.md or AGENTS.md section, a skill, a lint ratchet) with its own changelog | Defect escape on their verified changes at or below team median |
| 7–12 | Break-even agent count for their service; a coordinator in human-supervised mode | Tier 2 changes for a service they are learning | Verification design for one feature: what must be human-reviewed, what may be bot-reviewed, and why | Ships a measured improvement to R for someone else |
The structure is deliberately old-fashioned. It is how trades have always transferred judgment: supervised practice with the consequences held by someone senior, then widening scope. The thing being apprenticed has changed from writing to verifying. The method has not.
Most ladders written before 2024 reward output and scope: ships features, owns a service, designs systems, sets direction. In an agent org the first of those is now mostly the agent’s. Rewrite the criteria so each level is defined by what the person is accountable for verifying and what they build for others to verify with.
| Level | Old criterion | Agent-era criterion | Evidence |
|---|---|---|---|
| Early (L3) | Ships well-scoped features with guidance | Turns a ticket into a run spec with a machine-checkable definition of done; verifies agent output on their own service | Defect escape per verified change at or below team median; verification notes on every change |
| Mid (L4) | Owns a component end to end | Owns the harness for a component: instructions, test gates, review-bot configuration, blast-radius tiers; knows and documents its break-even agent count | Changes to the harness that lowered minutes per change or defect escape for teammates |
| Senior (L5) | Designs systems; leads projects | Designs verification: decides what humans must read, what bots may clear, what rolls out behind a monitor; owns a team coordinator | Team R trend; coordinator audit log; incident-free tier promotions |
| Staff and above | Sets technical direction across teams | Owns coordinator policy, the token-versus-headcount proposal (module 7), and the review of agent-caused incidents across the org | Cost per verified change and defect escape at org level; policy adopted by other teams |
Shopify’s April 2025 memo added AI-usage questions to performance and peer reviews. That measured adoption, which was the right target in early 2025 and the wrong one by late 2026: DORA puts adoption near 90%. Measure what the adoption produced, which module 6 defines. A ladder criterion that reads “uses agents effectively” will be satisfied by whoever spends the most tokens.
If your company stops hiring juniors for three years, who reviews code in 2032? Your current seniors will be staff or gone; the market will contain almost nobody with six years of verified-change ownership. Run the headcount model forward past the next budget cycle and the entrance looks less like a cost.
| Company | When | Change | Stated reason |
|---|---|---|---|
| Meta | July 2025 (internal post reported by 404 Media) | A coding interview in which candidates have access to an AI assistant | “More representative of the developer environment future employees will work in and makes LLM-based cheating less effective” |
| Reported May 2026 (internal document; spokesperson confirmed) | Pilot for junior and mid-level software engineering roles on select US teams: a code-comprehension round in which candidates read, debug and optimise an existing codebase with Gemini; interviewers score prompt writing, checking AI output and debugging; for junior candidates one standard technical round becomes an open-ended engineering session | VP of recruiting Brian Ong: “more reflective of how our teams are operating in the AI era” | |
| Anthropic | May 2025, then July 2025 | First asked applicants not to use AI in applications to assess “non-AI-assisted communication skills”; two months later allowed AI for résumés, cover letters and applications (Fortune). Reporting in 2026 describes live interviews as still mostly AI-free unless stated | Wanted to see how candidates think; then accepted that the tools are part of how people work |
| Shopify | Memo of March 2025, public April 2025 | Teams must show why AI cannot do the work before requesting headcount; AI-usage questions added to performance and peer reviews | “AI usage is now a baseline expectation” |
| Duolingo | 28 April 2025 | “Headcount will only be given if a team cannot automate more of their work”; AI use factored into hiring and performance reviews | Remove bottlenecks; “AI-first” |
Notice the convergence. Meta and Google both replaced an algorithm round with a round on an existing codebase, with the assistant present, scored on how the candidate directs and checks it. That is a decomposition-and-verification interview wearing a coding-interview costume. Anthropic’s reversal within two months is the more instructive story for a smaller company: the first instinct, to ban the tool and see the “real” person, did not survive contact with how people now work.
If the unit of work is the verified change with a named owner, the interview should predict whether the candidate can own one. Four signals do that; keystroke speed and algorithm recall do not.
| Round | Length | Tests | Agents | Rubric anchors |
|---|---|---|---|---|
| Decomposition | 45 min | Signal 1 | Allowed for drafting; the candidate presents the plan | Definition of done is checkable; out-of-scope list exists; tiering by blast radius mentioned unprompted |
| Agent PR review | 45 min | Signal 3 | Allowed; the planted problems survive a naive “review this” prompt | Finds the mock-asserting test; finds the spec relaxation; says what they could not verify |
| Verification design | 45 min | Signal 2 | Not needed | Separates what humans must read from what bots may clear; names a rollback |
| Harness and systems | 60 min | Signal 4, plus system design with the harness as a component | Allowed | Identifies stale instructions; treats the coordinator’s permissions as part of the design |
| Behavioural | 45 min | Ownership | No | “Tell me about a change you verified that was wrong anyway. What did you change afterwards?” |
Score each round on a three-point anchor written before the loop runs, and debrief in the order the rounds ran, with the agent-PR review first because it carries the most signal. Require every interviewer to read the candidate’s run log before the debrief; interviewers who have read it score the decomposition round far more consistently than those who have not. Keep the loop to four or five rounds. The signals above compound, and a sixth round adds fatigue, not information.
A take-home that bans agents in 2026 tests a skill the candidate will not use on the job and is unenforceable anyway. A take-home that allows them with no limits tests the candidate’s credit card. The workable form has four rules:
A PR three times the size the task needed. Tests that pass because they assert the mocks. No statement of what was left unverified. A run log that shows the candidate accepting the first output of every run. Any of these in a candidate for a mid-level role is disqualifying, because it predicts exactly the behaviour that fills the review queue in module 3.
The single highest-signal hour in the loop is the agent-PR review with planted defects. It is cheap to build, impossible to game with a better model, and it measures the thing the organisation is actually short of. If you can only change one round this quarter, change that one. The second is the budgeted take-home with the log attached; it ends the argument about whether candidates “cheated” by making the tool use the artefact under review.
Drop whiteboard algorithm recall, “implement an LRU cache”, language trivia, and anything whose answer a model produces in one shot. Drop “how many PRs did you ship last quarter”; module 6 explains why that number means nothing. Keep system design, but add the agent harness and the coordinator’s permissions as components the candidate must design. Keep live debugging, with the tool present. Keep the behavioural round, and change its questions to be about verification that failed rather than about delivery that succeeded.
How would you interview a candidate whose last role was supervising twelve agents and who has not typed a function by hand in a year? If your loop would reject them, decide whether that is a signal about the candidate or about the loop. Then imagine the opposite candidate, who types beautifully and has never verified anyone else’s change, and ask which one your review queue needs.
PR count, lines changed and commit frequency were always weak measures. They were tolerable because producing them cost human effort, so a person who produced a lot had at least done a lot. An agent fleet produces them for tokens. Worse, the field data in module 3 shows what maximising them looks like at population scale: 31% more PRs merging with no review, incidents per PR more than tripled, code churn up 861% (Faros, March 2026), duplication rising while refactoring falls (GitClear), throughput up with stability down (DORA 2025). Any review process that rewards the proxies is paying for those outcomes.
Five dimensions: Satisfaction and well-being, Performance, Activity, Communication and collaboration, Efficiency and flow. Productivity cannot be captured by one metric; a meaningful approach draws on at least three dimensions and includes at least one perceptual measure. Performance is best evaluated as outcomes rather than output.
SPACE was written for a world where Activity was a weak but real signal. In an agent organisation the Activity dimension is not weak; it is measuring the agent. The other four still work, and Performance-as-outcomes is now the whole game.
| Measure | Definition | Source | How it gets gamed | Counter-measure |
|---|---|---|---|---|
| Outcome moved | Did the verified change move the metric the ticket named? | Product analytics, tied to the change | Tickets written with no metric | No metric, no tier 2 or 3 work |
| Defect escape per verified change | Defects found after merge per 100 verified changes, attributed to the human owner | Incident and bug trackers linked to changes | Burying defects in “improvements”; avoiding hard changes | Normalise by tier; pair with outcome moved |
| Review quality | Catch rate on periodically planted defects; share of merges with substantive comments; review latency; unreviewed-merge share by tier | Review tooling plus a quarterly planted-defect exercise | Rubber-stamp comments | Planted defects are the control; comments are context |
| Cost per verified change | Tokens plus supervisor minutes, by tier, trended quarterly | Billing exports plus time sampling | Pushing work to cheaper tiers | Tier assignment is the owner’s, audited |
| Harness contribution | Changes to instructions, skills, gates or bot configuration that lowered minutes per change or defect escape for others | Harness repo history plus before/after measures | Churn in harness files | Count only changes with a measured effect |
| Perceptual | SPACE satisfaction items, plus one new item: “I can explain every change I shipped this quarter” | Quarterly survey | Survey fatigue | Five items, not fifty |
The last item is View 1 from the slop exchange turned into a question. The developer who wrote to Cherny did not ask for every change to be reviewed; he asked that “the person submitting the code should be able to explain it.” Ask that directly, anonymously, every quarter, and plot it against unreviewed-merge share. When the two lines cross, you have found the team that has quietly become View 2.
Review quality needs a control, because comment counts and latency can both be gamed by a reviewer who writes “looks good, nice work” quickly. Once a quarter, the coordinator owner takes three real agent-written changes from the previous month, re-opens them on a branch with one defect planted in each (a test that asserts its own mocks, a boundary condition removed, a permission check loosened) and routes them through the normal review queue without flagging them. Record who caught what. Publish the team’s catch rate, not individuals’, and use the individual results only in the owner’s conversation with each reviewer. Three changes a quarter cost a senior about two hours to prepare and give you the only number about review quality that a fleet of agents cannot move. If the catch rate stays below two in three for two quarters, the tiering in module 8 is wrong for that team; that is a finding about the gates, not about the people.
The generator/verifier split. In calibration the engineer who ran twelve agents and merged forty changes looks productive. The engineer who caught three bad merges among them looks slow. If your packet counts changes, you will promote the generator and lose the verifier, and module 3 says the verifier was the constraint. Fix it structurally: a verified change has an owner and a verifier of record, both named in the packet, and catches are listed as contributions with the defect they prevented.
Token spend as a halo. Spending more is visible in the billing export and feels like effort. It is not output. Present spend only as the denominator of cost per verified change.
Agent-caused incidents. Run them blameless, as always. But the accountability question is not “why did the agent do that”; it is “what verification should have caught it, and who owned that tier”. Attribute the verification gap, not the agent’s error, and change the tier or the gate.
The packet is what calibration reads, so its shape decides what calibration rewards. Keep it to one page per person with six blocks, in this order: defect escape per verified change (owned, trailing 90 days, by tier) with the team median beside it; verified changes owned and verified-of-record, as two separate counts; outcomes moved, with the metric and its before and after; catches, each with the defect it prevented; harness contributions, each with its measured effect; and the perceptual items. Token spend appears once, as the denominator of cost per verified change, never as a standalone line. A manager who cannot fill the first block for someone has not been running the measurement, and that is the manager’s finding, not the engineer’s.
Shopify’s 2025 move to put AI-usage questions in performance and peer reviews measured adoption. With DORA reporting about 90% of respondents already using AI at work and more than 80% believing it raised their productivity, adoption questions now separate nobody. Belief in a productivity gain is also not a measurement; METR’s developers believed they were 20% faster while being 19% slower.
Put exactly one number at the top of every engineer’s review packet: defect escape per verified change for changes they owned, trailing 90 days, normalised by tier. Everything else is context. It is the only measure that an agent fleet cannot inflate, that rewards the verifier as much as the generator, and that the CFO will understand in the same meeting as the token bill.
Open your engineering dashboard and mark every metric an agent fleet could max out without any human doing better work. If more than half the tiles are marked, the dashboard is measuring the vendor’s product, not your organisation. Replace the marked tiles with the six measures above before the next calibration cycle, not after.
All prices are Anthropic’s list prices per million tokens on the Claude API, from the platform pricing page, checked on 13 October 2026. The three 5.5 models shipped on 22 September (Opus), 28 September (Sonnet) and 7 October 2026 (Haiku).
| Model | Input | Cache read | Output | Batch (input / output) | Notes |
|---|---|---|---|---|---|
| Claude Opus 5.5 | $4 | $0.20 | $20 | $2 / $10 | 20% below Opus 5 ($5 / $25); cache reads at 0.05× input; fast mode $8 / $40 |
| Claude Sonnet 5.5 | $2 | $0.10 | $10 | $1 / $5 | Same list price as Sonnet 5; cache read halved to $0.10 at the Haiku launch |
| Claude Haiku 5.5, prompts up to 100,000 tokens | $0.10 | $0.01 | $0.50 | $0.05 / $0.25 | 90% below Haiku 4.5 ($1 / $5) |
| Claude Haiku 5.5, prompts over 100,000 tokens | $0.50 | $0.05 | $2.50 | $0.25 / $1.25 | Priced per request by prompt length; the only current model with a length tier |
| Reference: Claude Fable 5.1 | $10 | $0.25 | $50 | — | Frontier tier, unchanged |
Two features of the table matter more than the headline prices. Cache reads on the 5.5 models cost 5% of input, so a long-running agent whose context is mostly cached pays far less than the list price suggests. And Haiku 5.5’s long-prompt tier means an agent that lets its context grow past 100,000 tokens pays five times more per request from that point; a cheap model with a sloppy harness is not cheap. The spread from Opus to small-prompt Haiku is 40× on both input and output.
Stated inputs: a delegated run consumes 2 million input tokens, 80% of them cache hits, and produces 100,000 output tokens. These are round numbers for a substantial multi-step run; your own billing export will give you better ones within a week.
| Model | Uncached input (0.4M) | Cache reads (1.6M) | Output (0.1M) | Cost per run |
|---|---|---|---|---|
| Opus 5.5 | $1.60 | $0.32 | $2.00 | $3.92 |
| Sonnet 5.5 | $0.80 | $0.16 | $1.00 | $1.96 |
| Haiku 5.5, prompts kept under 100K | $0.04 | $0.016 | $0.05 | $0.11 |
| Haiku 5.5, prompts over 100K | $0.20 | $0.08 | $0.25 | $0.53 |
“Across enterprise deployments, the average cost is around $13 per developer per active day and $150–250 per developer per month, with costs remaining below $30 per active day for 90% of users.” The docs add that per-developer costs vary widely with model selection, codebase size and usage patterns such as running multiple instances or automation. Earlier versions of the same page said $6 and $12; the figures were revised in April 2026.
Tokens are the small part. Stated inputs for the human side: Levels.fyi’s 2025 US medians for total compensation by level, a 1.3× fully-loaded multiplier (benefits, payroll tax, equipment, space; my assumption, adjust to your finance team’s number) and 220 working days a year.
| Level (Levels.fyi 2025 US median TC) | Loaded cost per year | Per working day | Per hour |
|---|---|---|---|
| Entry ($155,000) | $201,500 | $916 | $114 |
| Mid-level ($226,000) | $293,800 | $1,335 | $167 |
| Senior ($312,000) | $405,600 | $1,844 | $230 |
| Staff ($457,000) | $594,100 | $2,700 | $338 |
Now one verified change. Assume 1.5 Opus runs per merged change (one run plus half a retry on average) and 20 minutes of a senior’s review. Tokens: 1.5 × $3.92 = $5.88. Review: 20 minutes at $230 an hour = $76.82. Total $82.70, of which tokens are 7.1%. Make the review an hour and the total is $236.33 with tokens at 2.5%. Replace Opus with Sonnet and the token share at 20 minutes falls to 3.7%. In every case, the human verification minutes are the cost of a verified change, and the token line is a rounding error on it.
Anthropic’s $13 per developer per active day is 0.7% of a senior’s loaded day; the 90th-percentile $30 is 1.6%. Fifty developers at the top of the documented monthly range ($250) cost $150,000 a year in tokens, or 0.37 of one loaded senior. A deployment ten times heavier, $2,500 per developer per month, is $1.5 million a year, or 3.7 loaded seniors. A loaded senior year buys about 103,000 Opus runs at the inputs above, roughly 470 per working day.
Finance will accept tokens as a line item. What it will not accept, and should not, is tokens presented as a substitute for people with no account of what the people were for. The slide that works has five lines and one trend:
| Line | What it is | Where it comes from |
|---|---|---|
| Loaded engineering headcount | People × loaded cost, by level | HR and finance |
| Agent tokens | Monthly spend by model and by team, with cache-hit rate | Billing export; Claude Code analytics API or the equivalent |
| Verification tooling | Review bots, security bots, rollout monitors, sandboxing | Vendor invoices |
| Cost per verified change | (Tokens + supervisor minutes + tooling) ÷ verified changes, by tier | Module 6 instrumentation |
| Defect escape per verified change | The quality denominator, trailing 90 days | Incident and bug trackers |
The trend to show is cost per verified change against defect escape, quarter by quarter. If the first falls while the second holds, the agents are paying for themselves. If the first falls while the second rises, you are buying incidents at a discount, and module 3 predicts that is the default outcome of adding agents without raising R.
| Buy agents (tokens) when | Hire or build verification first when |
|---|---|
| Review capacity has headroom: A×P is below R on the teams that would get the agents | Review is saturated: queue latency is rising and unreviewed-merge share is above zero on tier 2 and 3 work |
| The work has a machine-checkable definition of done: migrations, dependency upgrades, test backfill, well-specified features | The work is ambiguous, cross-team, or touches money, authentication or deletion |
| Blast radius is low or the rollout is monitored and reversible | Compliance or customers require a named human to have reviewed the change |
| The harness already encodes the domain: instructions, gates, examples exist | Domain knowledge lives in two people’s heads and nowhere the agent can read |
| The work parallelises and nobody is waiting on a single human decision | Incidents per change are rising; more production makes that worse |
Never present tokens as a substitute for a person. Present them as a multiplier on a person, with a ceiling set by that person’s R. The budget question is not “how many engineers can we replace with agents”; it is “how many verifiers do we need for the verified throughput we want, and how much do their agents cost”. Framed that way, the token line is small, the headcount line is about verification capacity, and the Shopify-style “prove AI can’t do it” rule becomes “prove the review queue can take it”.
Take last month’s token bill and divide it by the number of verified changes merged. If you cannot produce either number by Friday, that is the first fix, ahead of any model choice. If you can, compare the result with the supervisor minutes those changes consumed and notice which number the next budget conversation should be about.
Ninety days is about 13 weeks. Do not reorganise in week one. The first 90 days change policy and measurement, not boxes on a chart; the boxes follow once you know your R and your tiers. The plan is two weeks of diagnosis, six weeks of a single-team pilot, and roughly five weeks to decide and scale.
| Days | Phase | What gets done | Output |
|---|---|---|---|
| 1–14 | Diagnosis | Measure R on three teams by sampling review minutes and approvals. Classify the last 200 merged changes by blast-radius tier. Baseline defect escape, review latency, unreviewed-merge share, token spend per team. Inventory every harness file (CLAUDE.md, AGENTS.md, skills, bot configs) and every coordinator already running, with its owner, or lack of one. | A one-page diagnosis with five numbers and a list of unowned coordinators |
| 15–56 | Pilot (one team, six weeks) | Name a coordinator owner and deputy. Apply the tiered gates below. Turn on review and security bots. Set a token budget per engineer and a break-even agent count per the module 3 model. Weekly metrics review, 30 minutes. | Six weekly data points on cost per verified change and defect escape |
| 57–90 | Decide and scale | Compare pilot to baseline. Write the policy document. Change the ladder (module 4) and the review packet (module 6). Decide the ownership model for coordinators (module 2). Present the CFO slide (module 7). Scale to two more teams or stop. | Policy v1, ladder v1, a scale or stop decision with the numbers attached |
This is Cherny’s split turned into policy. Tier assignment is the change owner’s call and is audited; an owner who tiers down to avoid review loses the privilege.
| Tier | What it covers | Gate | Who is accountable |
|---|---|---|---|
| 0: throwaway | Prototypes, spikes, anything deleted within 30 days and never deployed | None beyond CI. Black box is fine | The person who runs it |
| 1: internal, reversible | Internal tools, tests, docs, dependency bumps with passing tests, refactors behind unchanged tests | Review bots plus an asynchronous human skim within 24 hours; merge may precede the skim if rollback is one command | Owner; verifier of record is the bot plus the skimmer |
| 2: customer-facing | Product changes, APIs, migrations with backfill | Security bot, bug bot, one human review of the review packet and the diff, monitored progressive rollout with an automatic pause on regression | Owner plus a named human verifier |
| 3: money, auth, data | Payments, permissions, deletion, anything regulated | Everything in tier 2 plus a second human reviewer and a staged rollout with a manual gate; the agent proposes, humans merge | Owner, two verifiers, and the service’s on-call signs the rollout |
Cursor Security Review and Rollouts (announced together on 23 September 2026 for Teams and Enterprise; Security Review had been in beta since April 2026): Security Review reads every pull request in the context of the codebase and posts one review comment reporting exploitable bugs, covering injection, authentication and authorisation bypasses, committed secrets, SSRF, unsafe deserialisation and vulnerable dependency changes; it skips draft PRs. Rollouts writes a rollout plan when the PR opens, checks the change against telemetry after deploy, reports health per environment and can pause a progressive rollout or prepare a revert PR. OpenAI Codex Security Cloud (DevDay, 29 September 2026): scans for vulnerabilities on a schedule, investigates findings, removes duplicates and prepares fixes; Codex automatic reviews “take a first pass in the cloud while you’re away.” Anthropic: the /security-review command and a GitHub Action that reviews pull requests for vulnerabilities and posts inline comments (August 2025), and Claude Code Code Review, in research preview for Team and Enterprise, which looks for logic errors, security vulnerabilities, broken edge cases and regressions, tags findings by severity and does not approve or block the PR.
Note what the bots have in common: none of them merges. They convert a diff into a triage for a human, which is the second lever from module 3. The one that changes the organisation most is the rollout monitor, because it moves part of verification from before merge to after deploy, where a tier 1 change can be allowed to prove itself in production under a monitor instead of in a queue.
Seven capabilities that DORA’s analysis of 78 interviews and a survey of almost 5,000 respondents found amplify or unlock the benefits of AI: a clear and communicated AI stance; healthy data ecosystems; AI-accessible internal data; strong version control; working in small batches; a user-centric focus; and quality internal platforms. DORA notes the AI-stance capability does not judge the content of the policy, only whether it is clear and communicated.
| Failure mode | Signal | Response |
|---|---|---|
| Queue growth | Review latency rising two weeks in a row; A×P above R on the pilot team | Cut agents per engineer to break-even; tier down nothing; add pre-review |
| Silent unreviewed merges | Unreviewed-merge share above zero on tier 2 or 3 (Faros found 31% more unreviewed PRs in the field) | Hard gate on tier 2 and 3; audit tier assignments |
| Coordinator drift | A coordinator acting on a trigger nobody can name an owner for | Disable the trigger; the read/write/trigger review from module 2 |
| Sandbox egress | Any outbound connection from a worker that the network policy did not allow (OpenAI’s September 2026 incident was DNS) | Automatic stop; network fix at two layers; drill |
| Token blowout | Cost per verified change rising while verified changes are flat | Check cache-hit rate and long-prompt tiers; cap runs per change |
| Junior starvation | No tier 0–1 work assigned to early-career engineers for a month | Reserve tier 1 verification for apprentices (module 4) |
| Metric gaming | PR count up, outcome moved flat, explain-it survey falling | Remove the proxy from every dashboard; recalibrate on defect escape |
Write it before day 15. Mine: stop the pilot if defect escape per verified change rises more than 50% over baseline for two consecutive weeks, if any tier 3 change merges without two human verifiers, or if a coordinator performs an action its owner cannot explain within one working day. A pilot without a stop rule is a rollout.
Most reorganisations announced around agents in 2026 start with the chart: fewer engineers, more agents, a new title or two. That is the last step, not the first. The first step is to learn your R, write your tiers, give every coordinator an owner, and put defect escape per verified change at the top of every packet. Do those four things and the chart draws itself within two quarters. Skip them and you will reorganise twice: once for the announcement and once for the incident.
What would make you stop the pilot at week four? If your honest answer is “nothing, we have already announced it”, you are not running a pilot. Write the stop rule, publish it to the team, and notice how much more carefully everyone tiers their changes once they know the number that ends the experiment.