Jaco van der Merwe on building software faster with AI

AI software development is allowing companies to build applications significantly faster, while fundamentally changing how engineering teams work.

Jaco van der Merwe, CEO of DVT, explains how artificial intelligence is transforming software and data engineering, with some projects already showing productivity improvements of around 50% and certain contained use cases moving even faster.

He distinguishes between AI augmentation, where people use tools to improve their existing workflows, and AI-native development, where agents generate specifications, architecture, code, and automated testing while humans oversee the process. van der Merwe also discusses the importance of governance, preventing AI drift, and managing token costs so that productivity gains do not create unnecessary expenses.

The conversation explores how roles such as business analysts and software engineers are evolving, why strong technical fundamentals still matter, and what junior developers should learn as AI becomes embedded in software development. van der Merwe also explains why cheaper, faster development could make previously unaffordable business ideas viable.

0:00 Intro

2:56 How AI is changing software engineering

5:12 AI augmentation vs AI-native development

7:06 Inside DVT’s AI-built teams

8:59 Governing AI-generated software

11:52 Managing AI token costs

17:14 How software engineering skills are changing

23:12 The future of software development