Software development is seeing a shift in how humans and AI interact. What began as simple code completion and suggestion within the IDE has become so much more. We're now seeing AI agents function like pair programming partners, similar to junior developers who can take on GitHub issues but still need guidance and review. At Coder, we've been testing AI agents within our Cloud Development Environments by letting them tackle actual development tasks. In this talk, I'll show you where AI pairing partners excel (documentation, quick prototyping) and where they still struggle. I'll also explore what's coming next: the shift toward "peer programming" where AI becomes a more trusted partner with greater autonomy. You'll see real examples of productivity gains we've measured, learn how to provide isolated environments for safe AI interaction, and walk away with practical steps to start leveraging AI's evolution from helpful assistant to development partner. Whether you're just experimenting with code assistance or ready to deploy AI agents at scale, this session will help you navigate this rapidly changing technology.
