The Rise of Agentic Coding
Artificial intelligence in software engineering has advanced beyond simple autocomplete features. The new frontier is agentic coding, where AI systems can plan changes, execute them across multiple steps, and iterate based on feedback. However, despite the excitement around “AI agents that code,” most enterprise deployments are underperforming. The issue isn’t the model itself but the context: the structure, history, and intent surrounding the code being changed.
Why Pilots Underperform
Enterprises are facing a systems‑design problem. They haven’t yet engineered the environment these agents operate in. The shift from assistive coding tools to agentic workflows has been rapid, with research formalizing what agentic behavior means in practice: the ability to reason across design, testing, execution, and validation rather than generating isolated snippets.
Early results show that introducing agentic tools without addressing workflow and environment can lead to a decline in productivity. A recent study found that developers using AI assistance in unchanged workflows completed tasks more slowly due to verification, rework, and confusion around intent.
The Role of Context Engineering
The key to unlocking the potential of agentic coding is context engineering. When agents lack a structured understanding of a codebase—its relevant modules, dependency graph, test harness, architectural conventions, and change history—they often generate output that appears correct but is disconnected from reality. The goal is not to feed the model more tokens but to determine what should be visible to the agent, when, and in what form.
Treating Context as an Engineering Surface
Teams that have seen meaningful gains treat context as an engineering surface. They create tooling to snapshot, compact, and version the agent’s working memory, deciding what is persisted across turns, what is discarded, what is summarized, and what is linked instead of inlined. They design deliberation steps rather than ad‑hoc prompting sessions and make the specification a first‑class artifact—something reviewable, testable, and owned.
Re‑architecting Workflows for Agents
Context alone isn’t enough. Enterprises must re‑architect the workflows around these agents. Simply dropping an agent into an unaltered workflow invites friction, with engineers spending more time verifying AI‑written code than writing it themselves. Agents can only amplify what’s already structured: well‑tested, modular codebases with clear ownership and documentation. Without these foundations, autonomy becomes chaos.
Security, Governance, and CI/CD Integration
AI‑generated code introduces new forms of risk—unvetted dependencies, subtle license violations, and undocumented modules that escape peer review. Mature teams are integrating agentic activity directly into their CI/CD pipelines, treating agents as autonomous contributors whose work must pass the same static analysis, audit logging, and approval gates as any human developer.
Measuring Success and Pilot Design
For enterprise decision‑makers, the path forward starts with readiness rather than hype. Monoliths with sparse tests rarely yield net gains; agents thrive where tests are authoritative and can drive iterative refinement. Pilots in tightly scoped domains—test generation, legacy modernization, isolated refactors—should be treated as experiments with explicit metrics such as defect escape rate, PR cycle time, change‑failure rate, and security findings burned down.
Data as the Underlying Challenge
Under the hood, agentic coding is less a tooling problem than a data problem. Every context snapshot, test iteration, and code revision becomes a form of structured data that must be stored, indexed, and reused. As these agents proliferate, enterprises will find themselves managing an entirely new data layer that captures not just what was built but how it was reasoned about.
Looking Ahead: Context Engineering Determines Success
The coming year will likely determine whether agentic coding becomes a cornerstone of enterprise development or another inflated promise. The difference will hinge on context engineering: how intelligently teams design the informational substrate their agents rely on. The winners will be those who see autonomy not as magic but as an extension of disciplined systems design—clear workflows, measurable feedback, and rigorous governance.
