Risk-Adjusted Intelligence

Software engineers have maintained a self-conception as highly paid, skilled tradespeople. This framework is falling apart now that the barriers to entry are disappearing. The craft is now carried out by AI — the SWE is just the capital allocator, deciding where there is ROI, liquidity risk, and room for diversification. The profession is completely different from just a few years ago. As all other aspects of software engineering now disappear into the background, its economic logic comes to the foreground.
The central challenge of capital allocation is decision-making under uncertainty. This has traditionally been outside the purview of software engineering, with engineers focusing on implementation conditioned on certain assumptions about the future. The challenge of planning around uncertainty was left to management or investors to whom a specific project or company, respectively...


