Tracks/Track 1 - Engineering Economics/1-16
Track 1 - Engineering Economics

1-16: Governing Vibe Coding & AI-Assisted Output

Master the economics of AI-generated code. Balance the explosive velocity of "Vibe Coding" against the compounding interest of technical debt.

3 Lessons~45 minSupports Framework: Production AI Governance
Sovereign Asset Pipeline TraceResearch → Implementation
1. Research
2. Concept
3. Framework
AI Unit Economics
4. Diagnostic
PDI / APER Engine
5. Implementation

🎯 What You'll Learn

  • ✓ Understand the specific type of design debt created by LLM-assisted generation.
  • ✓ Implement automated quality gates to review AI pull requests.
  • ✓ Calculate the lifetime maintenance cost of "free" AI code.
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1

Lesson 1: The Economics of Generative Debt

"Vibe Coding" allows junior engineers and even non-technical founders to spin up full-stack applications in hours using Cursor or Copilot. The velocity is intoxicating, but the economics are brutal. LLMs do not write maintainable, architecturally sound systems; they write highly localized, naive implementations that satisfy the immediate prompt. This generates a new class of technical liability called "Generative Debt." When you accept thousands of lines of AI output without understanding it, you trade upstream typing time for downstream debugging nightmares. The cognitive load to reverse-engineer AI spaghetti code often eclipses the time it would have taken to write it properly from scratch.

Generation vs Maintenance

AI makes code generation nearly free, shifting 90% of the cost to maintenance and reading.

Target: Measure review time, not lines of code written.
Architectural Degradation

LLMs default to monolithic, unscalable patterns unless explicitly architected via highly rigid prompt constraints.

Benchmark: Enforce strict separation of concerns via linters.
The "Ownership" Gap

If the AI wrote it, no human understands how it connects to the broader system, leading to hyper-fragile deployments.

Target: Mandatory human-led architecture reviews for all AI-generated PRs.
📝 Exercise

Review a recent pull request heavily generated by AI. Identify two architectural decisions made by the LLM that do not align with your broader codebase standards.

2

Lesson 2: Quality Gates for AI Outputs

You cannot govern Vibe Coding by telling developers to "be careful." You must implement algorithmic quality gates in your CI/CD pipeline tailored specifically to catch LLM anti-patterns. This includes strict cyclomatic complexity checks, duplicate code detection (LLMs famously repeat themselves), and automated security linting for hallucinated dependencies. If the AI hallucinates a non-existent NPM package name, a threat actor can register it and hijack your build. Your CI/CD must block these PRs deterministically before they reach the main branch.

Dependency Auditing

Scanning `package.json` for hallucinated or malicious external libraries.

Target: 100% automated dependency lockfile validation.
Complexity Thresholds

Blocking functions that exceed strict cognitive complexity limits, preventing LLM spaghetti logic.

Benchmark: Max cyclomatic complexity of 10 per function.
Test Coverage Mandates

AI can write code, but it must also write the tests proving the code works. Enforce branch coverage minimums.

Target: 80%+ branch coverage for all AI-assisted features.
📝 Exercise

Implement a SonarQube, CodeClimate, or equivalent linting rule specifically designed to block functions longer than 50 lines to aggressively counter LLM verbosity.

3

Lesson 3: The True Cost of AI Velocity

To justify AI tooling (like buying $20/mo Cursor licenses for the whole team), you must accurately calculate the ROI. If developer output increases by 30%, but QA bug rates increase by 40%, you have negative enterprise velocity. The true metric is not "Lines of Code Written," but "Revenue-Generating Code Deployed Successfully." Track the DORA metrics (Deployment Frequency, Lead Time, Change Failure Rate, Time to Restore) specifically segmented by teams heavily utilizing Vibe Coding versus control teams. Only then can you prove the economic viability of AI acceleration.

Change Failure Rate (CFR)

The percentage of deployments causing a failure in production. The most critical metric for AI-heavy teams.

Target: Keep CFR < 5% even with 2x AI velocity.
Lead Time for Changes

The time from commit to production. AI speeds up the coding phase, but can bottleneck the review phase.

Benchmark: Ensure PR review time doesn't balloon to offset coding speed.
Rethinking Developer Output

Shift KPIs away from story points completed toward business value realized.

Target: Measure Revenue Per Engineer (APER) over raw velocity.
📝 Exercise

Compare the Change Failure Rate of your team from the 6 months prior to adopting AI coding tools to the 6 months after. Did velocity come at the cost of stability?

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01import { orchestrator } from '@exogram/core';
02
03const router = new AgentRouter({);
04strategy: 'COST_EFFICIENT_SLM',
05fallback: 'FRONTIER_MODEL'
06});
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Module Syllabus

Lesson 1: Lesson 1: The Economics of Generative Debt

"Vibe Coding" allows junior engineers and even non-technical founders to spin up full-stack applications in hours using Cursor or Copilot. The velocity is intoxicating, but the economics are brutal. LLMs do not write maintainable, architecturally sound systems; they write highly localized, naive implementations that satisfy the immediate prompt. This generates a new class of technical liability called "Generative Debt." When you accept thousands of lines of AI output without understanding it, you trade upstream typing time for downstream debugging nightmares. The cognitive load to reverse-engineer AI spaghetti code often eclipses the time it would have taken to write it properly from scratch.

15 MIN

Lesson 2: Lesson 2: Quality Gates for AI Outputs

You cannot govern Vibe Coding by telling developers to "be careful." You must implement algorithmic quality gates in your CI/CD pipeline tailored specifically to catch LLM anti-patterns. This includes strict cyclomatic complexity checks, duplicate code detection (LLMs famously repeat themselves), and automated security linting for hallucinated dependencies. If the AI hallucinates a non-existent NPM package name, a threat actor can register it and hijack your build. Your CI/CD must block these PRs deterministically before they reach the main branch.

20 MIN

Lesson 3: Lesson 3: The True Cost of AI Velocity

To justify AI tooling (like buying $20/mo Cursor licenses for the whole team), you must accurately calculate the ROI. If developer output increases by 30%, but QA bug rates increase by 40%, you have negative enterprise velocity. The true metric is not "Lines of Code Written," but "Revenue-Generating Code Deployed Successfully." Track the DORA metrics (Deployment Frequency, Lead Time, Change Failure Rate, Time to Restore) specifically segmented by teams heavily utilizing Vibe Coding versus control teams. Only then can you prove the economic viability of AI acceleration.

25 MIN
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Richard Ewing: AI Economist & Capital Auditor