Beyond vibe coding: the case for spec-driven AI development
AI Agents

Beyond vibe coding: the case for spec-driven AI development

AI is transforming software development, but experts warn that without proper governance, productivity gains could lead to technical debt. Matthias Steiner advocates for spec-driven development, emphasizing structured specifications to enhance code quality and align engineering with business outcomes.


What is 'vibe coding' and how does spec-driven development differ from it?
Vibe coding refers to ad-hoc development approaches where AI agents generate code based on loose interpretations and common patterns without clear guidance. Spec-driven development (SDD) contrasts this by using executable specifications as the single source of truth. Instead of letting AI agents guess at requirements, SDD provides detailed, implementation-level specifications that define exactly how systems should work, including data structures, API contracts, and acceptance criteria. This structured approach eliminates ambiguity and ensures AI agents build what was actually intended rather than generic solutions based on training patterns.
Sources: [1], [2]
How does spec-driven development help prevent technical debt when using AI coding agents?
Spec-driven development prevents technical debt by making specifications executable blueprints that drive implementation, testing, and maintenance throughout the software lifecycle. Rather than allowing AI agents to make ad-hoc architectural decisions during coding, SDD encodes architectural constraints, security requirements, and design system guidelines into the specification and technical plan upfront. This ensures new code integrates naturally with existing systems instead of becoming bolted-on additions. Additionally, the approach creates traceability—each task links back to specific requirements—and enables iterative refinement where teams can update specifications and regenerate code rather than accumulating legacy code that drifts from original intent.
Sources: [1], [2], [3]

18 February 2026

The New Stack
Impact of AI Starting to Kick In on Economy Says Moody's Zandi
NYS:MCO

Impact of AI Starting to Kick In on Economy Says Moody's Zandi

Moody's Analytics chief economist Mark Zandi highlights the growing influence of AI on hiring and the tech sector. He also discusses the slow progress in affordable housing, noting Congress's positive steps but emphasizing the long road ahead for the U.S. economy.


Why is Mark Zandi concerned about AI's impact on income inequality despite its economic benefits?
Zandi warns that unlike previous technological innovations that distributed benefits broadly across the population and created diverse job opportunities, AI's benefits appear to be concentrating among a narrow group of businesses and their shareholders and creditors. He expresses concern that this concentrated distribution could exacerbate income inequality in a 'case-shaped economy' rather than lifting all workers.
Sources: [1]
How does AI growth relate to the recession risks Zandi identifies for 2026?
While Zandi acknowledges that AI has been driving economic growth and provided a tailwind for the economy in 2025, he warns of potential systemic risks if the AI sector represents a bubble. He cautions that if the stock market bubble bursts due to overvaluation in AI-related investments, it could wipe out wealth and trigger a recession similar to what occurred after the Y2K bubble burst, despite underlying economic growth from AI technology itself.
Sources: [1]

18 February 2026

Bloomberg Technology
General Technology

Crypto Firm Ledn Sells Bitcoin-Backed Bonds In ABS Market First

Crypto lending firm Ledn Inc. has made history by selling $188 million in securitized bonds backed by Bitcoin, marking the first-ever transaction of its kind in the asset-backed debt market. This innovative move highlights the evolving landscape of cryptocurrency finance.


What are asset-backed securities (ABS)?
Asset-backed securities (ABS) are financial instruments created by pooling smaller loans or assets, such as consumer debt or Bitcoin-collateralized loans, and issuing securities backed by the cash flows from those assets. This process, called securitization, allows originators like Ledn to transfer risk to investors, improve capital efficiency, and access new funding.
Sources: [1]
What makes Bitcoin-backed ABS unique and risky?
Bitcoin-backed ABS, like Ledn's $188 million deal, use loans collateralized by Bitcoin as the underlying assets, introducing volatility risks not typical in traditional ABS backed by stable assets like mortgages. A sharp Bitcoin price drop can trigger automatic liquidations, altering the collateral pool and reducing yields, as seen in the 27% decline leading to 25% of the pool being liquidated into cash.
Sources: [1]

18 February 2026

Bloomberg Technology
An unhandled error has occurred. Reload 🗙