# software engineering

AI's stack is being securitized as lawmakers weigh child protections and infrastructure risks, while calls intensify for public stewardship of AI-run infrastructure. At the same time, video costs are falling sharply with Veo 3.1 Lite cutting prices by half and Sora exiting, signaling consolidation pressure and tighter unit economics. Builders are abandoning monolithic ambitions in favor of interoperable agent workflows that prioritize reliability, governance-by-design, and measurable ROI.

Builders are moving past consultancy-led hype to deploy agents with identities, spend, and voice, supported by security checklists and reproducible tooling. Reports of a self-improving agent beating domain benchmarks in under 24 hours and the viability of efficient local models signal an operational pivot that will shift workloads off the cloud while demanding stronger human fundamentals.

The AI sector is confronting simultaneous pressure from courts, reliability demands, and capital markets. A court order blocking an AI shopping agent and a lawsuit over a federal risk label illustrate how policy is redefining market access, while builders shift to multi-agent verification and provenance to earn production trust. Investors are recalibrating as agents remain unable to transact without identity, liability, and payment rails.

Developers are finding that architecture, validation, and observability—not swapping models—determine whether agents work in production. Policy debates over automation taxes and federal preemption, alongside Nvidia's move into open models and constraints on Chinese open-weight systems, show how governance and market structure are shaping capabilities and adoption.