Deus Ex Machina Capital Announces Two Complementary Research Papers On AI-Assisted Software Development And AI Productivity.
Bisardi said:
“Over the next five years, the binding scarce asset will not be access to UI-based chat models, but the capability to redesign human workflows into agentic systems and apply them to mispriced surfaces still anchored to human labor or legacy R&D cost assumptions.”
The first paper, “An Approach to High-Velocity Development through Systematic Context Engineering: A Case Study,” introduces a context architecture designed for fast AI-native software development. The approach, based on a four-pillar framework, combines:
- A declarative rule layer that encodes architectural, process, and quality invariants A programmatic Repo Model Context Protocol (MCP) layer that exposes live project structure, data, and tools to AI assistants and agents
In roughly fifteen part-time weeks, two researchers built a production-grade research artifact (Bizie) that reproduces a representative set of features found in mature event-productivity software, illustrating the practical implications of the proposed context architecture. The paper serves as a case study and a practical guide for aspiring entrepreneurs, clearly defining the distinction between vibe-coded prototypes and production-grade applications.
The second paper, “The LLM Productivity Cliff: Threshold Productivity and AI-Native Inequality,” addresses a central tension in the AI narrative: widespread access to LLMs has not produced uniform productivity gains. Based on early empirical evidence, the researchers argue that:
- There is a threshold productivity level below which additional AI assistance has limited impact and above which returns become sharply non-linear. The decisive variable is AI architectural literacy: the steepest gains accrue to teams with the skills to re-engineer human and UI-based workflows into agentic systems, while organizations that simply add AI tools on top of legacy stacks and processes see only marginal improvements.
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