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Engineering Leadership in an AI Era

Strategies for balancing efficiency, resilience, and innovation

Engineering Leadership in an AI Era

Strategies for balancing efficiency, resilience, and innovation

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https://www.iconiqcapital.com/growth/insights/engineering-leadership-in-an-ai-era

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Earlier this month, we gathered technical leaders from some of the fastest-growing tech companies across Europe for an insightful exchange of ideas at Future Proof London—our engineering summit for technical founders, Chief Technology Officers (CTOs), and Chief Product Officers (CPOs). The summit was designed to address the complex challenges that engineering teams face as they scale, challenges that often go beyond established frameworks and well-defined metrics.

Engineering leadership today is grappling with a myriad of struggles. The rapid integration of AI into development workflows is not just automating routine tasks, but also has the potential to reshape the entire approach to software development. As companies scale, engineering teams also face inefficiencies like dependencies and misaligned organizational structures. Leaders must constantly reevaluate processes to minimize bottlenecks and ensure engineers remain close to customer needs, while also fostering autonomy and agility within teams.

Balancing efficiency with resilience is another critical challenge. By focusing on organizational design, diverse hiring, and fostering collaboration across teams, leaders can work to strike a balance between these two qualities, allowing their organizations to innovate and adapt quickly while maintaining stability.

Through vibrant discussions ranging from engineering resilience to AI-driven transformation, the summit provided insights into how today’s technical leaders are addressing these multifaceted challenges. Below, explore all the key takeaways from the summit to help you navigate these evolving challenges in your own organization.

Embracing AI in Engineering

A standout theme of the summit was the role of AI in the future of engineering, a topic that sparked excitement and healthy debate. With the rise of tools like GitHub Copilot and Devin, engineering teams are increasingly using AI to automate tasks like code testing and documentation, potentially freeing engineers to focus on higher-value work.

Sebastian Enderlein, CTO of DeepL, shared that they’ve already seen productivity gains from AI tools, particularly in automating repetitive, low-complexity tasks. While these tools are still in their early days, he believes their potential to reshape engineering work is vast. Emma Burrows, Founder of Portia Labs and former CTO of Stripe UK, added that AI could represent a massive abstraction shift in how software is developed, though she noted concerns that this shift could make it harder for junior developers to enter the workforce.

Despite the promise of AI, the panelists agreed that human engineers won’t be replaced anytime soon. Instead, they believe AI will change the nature of the work engineers do, requiring teams to rethink workflows and develop new skills to complement these emerging technologies.

“I think AI changes the role of the engineer going forward; however it will take much more than 2 years. I think we overestimate how quickly these major shifts will happen and underestimate the longer-term impact. My big concern is when all code is generated by Copilots and they are better at criticizing code than humans are; I find that moment quite scary. And that brings certain problems in terms of changing how we educate engineers in our universities, because right now there are a lot of people who see the value of 80% of it but are able to fix the 20% that is not working right. In the future, junior engineers will have lost that ability to check code.”
Alexander Matthey, Former CTO of Adyen

Innovating Under Constraints

As engineering teams scale, we often find one of the greatest challenges they face is avoiding organizational inefficiency. In today's market, where there is pressure to balance innovation with constrained resources, leaders are tasked with rethinking processes to maintain agility.

Former CTO of Adyen, Alexander Matthey underscored the issue of dependencies, where engineers often find themselves waiting on approvals or blocked by other teams. At Adyen, they’ve had to consistently reevaluate their processes at different stages of growth to minimize these bottlenecks. Emma echoed this sentiment, noting that organizational structures often outgrow themselves, necessitating constant reevaluation.

“Software moves so fast that you outgrow that org design/structure very quickly. So it’s kind of part of the job to constantly need to reinvent and figure out ways to reduce those inefficiencies. An additional inefficiency is that as your organizations grow, your engineers get further and further away from the product and the customer problems they are solving. They are not close enough to the users to know that they are building the right thing.”
Emma Burrows, Founder of Portia Labs & Former CTO of Stripe UK

Sebastian added that a lack of autonomy is another significant source of inefficiency. When engineers don’t have clearly defined roles and responsibilities, it becomes difficult for them to take initiative and move projects forward. Sebastian believes these issues requires a thoughtful approach to organizational design, ensuring that teams have the autonomy and clarity they need to operate efficiently.

On the topic of developer productivity, Emma emphasized that while tracking performance metrics is important, it’s crucial to avoid over-relying on a single north star metric. Alexander shared that at Adyen, they focus on customer-centric metrics, ensuring that engineering teams are always aligned with delivering value to the end user.

“We want every team to think deeply about their SLOs and it has to tie back to customer value. Different teams will have very different angles in terms of touching the customer, but it has to be a common theme that is shared by all. And then there are the metrics around reliability to ensure we drive a certain behavior.”
Alexander Matthey, Former CTO of Adyen

Building Antifragile Organizations

Featuring insights from Matt Eccleston, former VP of Growth at Dropbox, Mike Curtis, former VP of Engineering at Airbnb, and Jeff Rothschild, former VP of Engineering at Facebook, all of whom serve as advisors on our Technical Advisory Board, we also unpacked the concept of organizational fragility and strategies for building more resilient and enduring engineering teams.

Matt shared a poignant story from his time at Dropbox when a database failure led to a company-wide outage. The recovery process took over 24 hours and required a heroic team effort. This moment, however, became a defining one for Dropbox’s engineering culture. The team adopted a rigorous, blameless incident review process, ensuring that each failure was treated as a learning opportunity and helped the company evolve into a more robust, resilient organization.

Building organizational resiliency involves iterations across people, processes, and technology. It’s critical to find the right level of investments in resiliency relative to your company’s scale and stage of growth. In terms of people, Jeff highlighted the importance of building teams that reflect diverse perspectives, cautioning against the tendency to hire in one’s own image—a phenomenon he called “mirror-tocracy.” He explained how creating a resilient organization requires consciously hiring people with different skills and experiences, rather than those who fit a predefined mold.

The panelists also agreed that as organizations scale, the role of engineering leadership also evolves. As you start to introduce layers of management in the organization, communication becomes a core aspect of the job of an engineering leader. As such, leaders need to frame the decisions an engineering organization is making in a way that makes sense to the rest of the team.

“The communication of what’s important, what success looks like, and how we measure progress on those goals becomes a big part of the engineering leader’s day-to-day. This way, people understand what they should be doing and what their incentive is to do it. Another inflection point is when you need to develop the skillset to operate cross-functionally. A big part of the job becomes “how do I set my team up for success,” and as the company grows that means coordinating with your sales, finance, design teams.”
Mike Curtis, ICONIQ Growth Technical Advisory Board

The conversation also covered the balance between efficiency and resilience, emphasizing that building resilient organizations does not mean sacrificing speed or innovation. In fact, it was argued that resilience is often what enables faster iteration and the ability to recover more quickly from setbacks. For example, engineering teams can invest in developer hygiene and rigorous hiring processes at the very early stages to enable the organization to move faster in the long run.

Looking Ahead

The discussions highlighted the importance of collaboration, continuous learning, and adapting to the ever-changing landscape of technology. If you’d like to continue learning, you can explore our recent research on engineering efficiency, organizational design, and compensation. We look forward to continuing the conversation and working together to solve the challenges facing the next generation of tech innovators.

Notes

Disclaimer:

Unless otherwise indicated, the views expressed in this presentation are those of ICONIQ Growth (“ICONIQ" or the “Firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision. Information used in this presentation was obtained from numerous sources. Certain of these companies are portfolio companies of ICONIQ Growth. ICONIQ Growth does not make any representations or warranties as to the accuracy of the information obtained from these sources. 

This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services.  Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein. 

Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized.

This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ.

Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information.

All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. Numbers or amounts herein may increase or decrease as a result of currency fluctuations.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

Disclaimer

The views expressed in this presentation are those of ICONIQ Growth ("ICONIQ" or the "firm"), are the result of proprietary research, may be subjective, and may not be relied upon in making an investment decision.  This presentation is for general information purposes only and does not constitute investment advice. This presentation must not be relied upon in connection with any investment decision. The information in this presentation is not intended to and does not constitute financial, accounting, tax, legal, investment, consulting or other professional advice or services. Nothing in this presentation is or should be construed as an offer, invitation or solicitation to engage in any investment activity or transaction, including an offer to sell or a solicitation of an offer to buy any securities which should only be made pursuant to definitive offering documents and subscription agreements, including without limitation, any investment fund or investment product referenced herein.  Any reproduction or distribution of this presentation in whole or in part, or the disclosure of any of its contents, without the prior consent of ICONIQ, is strictly unauthorized. This presentation may contain forward-looking statements based on current plans, estimates and projections. The recipient of this presentation ("you") are cautioned that a number of important factors could cause actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements. The numbers, figures and case studies included in this presentation have been included for purposes of illustration only, and no assurance can be given that the actual results of ICONIQ or any of its partners and affiliates will correspond with the results contemplated in the presentation. No information is contained herein with respect to conflicts of interest, which may be significant. The portfolio companies and other parties mentioned herein may reflect a selective list of the prior investments made by ICONIQ. Certain of the economic and market information contained herein may have been obtained from published sources and/or prepared by other parties. While such sources are believed to be reliable, none of ICONIQ or any of its affiliates and partners, employees and representatives assume any responsibility for the accuracy of such information. All of the information in the presentation is presented as of the date made available to you (except as otherwise specified), and is subject to change without notice, and may not be current or may have changed (possibly materially) between the date made available to you and the date actually received or reviewed by you. ICONIQ assumes no obligation to update or otherwise revise any information, projections, forecasts or estimates contained in the presentation, including any revisions to reflect changes in economic or market conditions or other circumstances arising after the date the items were made available to you or to reflect the occurrence of unanticipated events. For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you. ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation. Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

For avoidance of doubt, ICONIQ is not acting as an adviser or fiduciary in any respect in connection with providing this presentation and no relationship shall arise between you and ICONIQ as a result of this presentation being made available to you.

ICONIQ is a diversified financial services firm and has direct client relationships with persons that may become limited partners of ICONIQ funds. Notwithstanding that a person may be referred to herein as a "client" of the firm, no limited partner of any fund will, in its capacity as such, be a client of ICONIQ. There can be no assurance that the investments made by any ICONIQ fund will be profitable or will equal the performance of prior investments made by persons described in this presentation.

Any information in this presentation is directed at, and intended for, only persons who are experienced institutional or professional investors (“professional investors”) as defined by applicable law and regulation. Any person that is not a professional investor is not an intended recipient of this presentation and the matters discussed herein.

Copyright © 2024 ICONIQ Capital, LLC. All rights reserved.

The ICONIQ Growth website does not present information relating to ICONIQ Capital, its investment funds, or its advisory business and should not be consulted for any advisory purposes. The ICONIQ Growth content is intended for the use of company founders and executives.