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Explainer

What is an AI software factory?

In an AI software factory, people specify what a change should do. Coding agents implement it, tests check the result, and the team decides which changes need approval before release.

The components of an AI software factory

Follow a proposed change through the diagram. A failed check sends it back to the agent. After release, production signals go back to the operator, who can use them to specify the next change.

cycling
INTENT PASS PASS PASS YES NO APPROVED PASS FAIL FAIL FAIL FAIL ATTRACTOR PULL DECLINED RESTART FROM KNOWN-GOOD SIGNALS OPERATOR AGENT CONTEXT CRITIC VALIDATOR DIGITAL TWIN LOW RISK? HUMAN APPROVAL RUNTIME LAW KNOWN-GOOD STATE

The loop

A person sets the outcome, agents do the work, and checks judge it. Work that fails a check returns to the last known-good state.

  1. 01 / Intent

    Describe the outcome

    The person who knows the workflow writes down what should happen, which constraints matter, and what an acceptable result looks like.

  2. 02 / Agents

    Propose a change

    A coding agent reads the specification and the codebase, then submits its change for testing.

  3. 03 / Validation

    Check the behavior

    Acceptance tests check the result against the specification. A second model can look for mistakes, and a digital twin lets the team test failures that would be costly to trigger in production.

  4. 04 / Approvals

    Decide who can release it

    The team sets a risk threshold. Routine changes can proceed after the checks pass. For higher-risk changes, a reviewer examines the evidence and decides whether to release.

  5. 05 / Runtime

    Limit what the software can do

    Permissions constrain the running software. Operators monitor its behavior and can restore a working version if a release fails.

  6. 06 / Operators

    Fix the next run

    When a check fails or a customer reports a problem, operators trace it back to the specification, implementation, or test. They decide what to change before the next run.

Our paper Specification Oracles explores a related question. Can a language model learn how a system behaves and answer questions about it as a specification would?

From a demo to a release

A demo can work for one user and still fail in production. A test might cover only the successful case, or an agent might have broader permissions than a customer does. Select a step on the map to see where delivery can stall.

Last mile map routing
SEC 01 · ORG/EDGE SEC 04 · PRODUCTION X0 Y720 X1200 Y0 HAPPY-PATH OPTIMISM ✕ DEAD END INTENT DRIFT ✕ DEAD END MISSING ACCEPTANCE TESTS ✕ DEAD END UNSAFE PERMISSIONS ✕ DEAD END NO RUNTIME OBSERVABILITY ✕ DEAD END DEMO INTENT TESTS PERMISSIONS RUNTIME TRUSTED SYSTEM

The route

One path reaches a trusted system. Five others dead-end. Drag the map, or hover a node to see why.

How many agents can one team supervise?

An agent that suggests an edit needs less oversight than one that can deploy it. Use the controls to see how the number of agents, their autonomy, and the consequences of a mistake affect the load on the team responsible for them.

Attention load map stable
1 TEAM RESPONSIBLE SUPERVISION
Agents
Autonomy
Blast radius

5 agents · assisted · low blast radius

Clear ownership, low exception load.

How Diffusion builds a factory with your team

At Diffusion Silicon Valley, we start with the people who run your workflow. For engagement details, see Work with Diffusion.

  1. 01 Executive Workshop. Leaders spend a day learning how the factory works and where it could help their teams.
  2. 02 Inception. The people who own the workflow come to Diffusion Silicon Valley to specify what it should do.
  3. 03 Factory Building. We build and test the workflow together, including the checks it must pass before release.
  4. 04 Operator Handoff. Your team takes over day-to-day operation and decides what to add next.

What the factory runs

Four loops connect the codebase to the running application. They gather data from the running application, check the code, try user workflows, and turn findings into changes.

Watch production

Aware

Aware brings together product analytics, errors, session replays, and traces. Its Watch investigations collect evidence for each issue.

Keep promises

Housekeeper

Housekeeper audits repositories for security, correctness, performance, and reliability issues. A model from a different family challenges each finding. Confirmed reports explain what goes wrong, how to reproduce it, and how to fix it.

See around corners

Explorer

Explorer tries your application as different users, including admins and customers. Before taking an action, it records what it expects to happen. Reviewers can see where the application behaved differently.

Make the changes

Assembly

Assembly turns findings, bug reports, and feature requests into pull requests. Each includes the checks and a captioned video showing the behavior before and after the change.

Examples of AI software factories

01 / Early lessons

Day one and day two

In his Enterprise AI Summit talk, Diffusion founder and former StrongDM CTO Justin McCarthy recalls writing “No human-written code” on the board on day one. By day two, his team realized that nobody could read changes as fast as agents could write them. They had to change how they reviewed the work.

Watch the talk

02 / Where it fits

Workflows full of handoffs

An insurance claim passes through several hands before payout. A hospital discharge depends on decisions by several teams. The illustrative workflows on Work with Diffusion let you follow each handoff and see where work waits for approval.

03 / Where it fits

A brownfield rewrite

A running product gives a rewrite team a reference. Capture how the old system handles real workloads, then run the same checks on its replacement. The team can keep those tests through later rewrites.

Brownfield rewrite resources

04 / Where it starts

A prototype for one workflow

Build a small prototype of a decision an operator makes often. Give the operator a real case to try. Before a production test, agree on who owns that decision and how to tell whether the prototype handled it correctly.

Build the internal case

Frequently asked questions

01

Is an AI software factory the same as an AI coding assistant?

A coding assistant helps a developer write or revise code. A factory also handles what happens after the agent proposes a change, from testing and approval to monitoring the release.

02

What is the hardest part of building a software factory?

Validation. A passing test only tells you about the behavior it covers. In his Charlotte talk, Justin McCarthy estimated that validating a change could use 10 to 100 times as many tokens as writing the code.

Watch the Charlotte talk (estimate at 8:09)
03

What work stays with people?

People decide which customer problem to solve, what good work looks like, and who can accept the risk of a release. As agents improve, teams can revisit which decisions still need a reviewer.

04

Where should a company start?

Pick one recurring workflow with a clear owner. Ask that person for a recent example, what they expected to happen, and how they knew the work was done. Those answers give you a first test.

05

Should we wait for better models before building one?

You can start now by documenting the workflow and building acceptance tests. Those tests also give you a way to compare a new model with the one you use today.

06

Who owns the factory once it's built?

Your team does. Your operators run the workflow, maintain its checks, and decide where to extend it.

Build your software factory.

Bring a workflow and someone who runs it. We'll identify a first change and agree on how to test it.