What Technical Due Diligence Finds When the Deck Says “70% Automated” — Soukaïna Abelhad
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What Technical Due Diligence Finds When the Deck Says “70% Automated”
Soukaïna Abelhad connects automation claims to the human work left behind, the boundary of a completed task and the quality standard that determines whether the economics hold.
From a talk by Soukaïna Abelhad
At a glance
Ideas worth remembering
Compare workload growth with all the human labor required to deliver it. More output with proportionate review and rework supports assistance, without establishing labor removal.
An AI-attributed task is not necessarily autonomous. Request a straight-through completion rate inside a named end-to-end workflow boundary.
Validate automated evaluation against expert acceptance, measure agreement and examine the bad outputs that passed.
Calculate cost per accepted autonomous task with failed attempts, review, escalation and rework included in the costs.
A real measurement can support the wrong conclusion
“55.8% faster” sounds like a clear answer to whether AI improves developer productivity. Soukaïna Abelhad opens with the conditions behind that number: a controlled experiment involving 95 professional developers, building one JavaScript HTTP server from a template against 12 visible tests. Those details define what was measured. A result on that task does not, by itself, tell a buyer how much of an ongoing software workflow can run autonomously.
Abelhad brings experience building AI systems for investment professionals and leading production AI evaluation. Her concern is the distance between a measurement and the executive conclusion attached to it. “The dangerous number is not always fabricated.” A genuine result can travel beyond the conditions that make it meaningful. Her diligence framework follows three checks—arithmetic, definition and evaluation—before asking whether the surviving claim makes economic sense.
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Compare growing output with the labor needed to deliver it
The first check needs no model expertise. In the Faros observational data Abelhad cites, teams with high AI adoption merged 98% more pull requests, pull request review time increased by 91%, and average pull request size increased by 154%. The sample covered more than 10,000 developers across 1,255 teams. Read those figures together: more work entered the system while the downstream review burden also grew. This was observational telemetry, not a controlled labor study, so it does not establish that AI caused higher headcount.
For a company under diligence, put workload volume beside fully loaded human labor over an 18-month period. The labor account must include the people needed to make the AI workflow function: operators, reviewers, trainers, and the work spent on escalation and rework. Counting only the people who initiate tasks would miss the people who finish or correct them.
The relationship matters more than the output headline. If human labor rises in step with workload, the system may help people produce more while still requiring proportionate human effort. That supports a claim of assistance; it does not establish labor removal. Passing this check still leaves another question: what, exactly, has the company counted as automated?
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Name the point where an automated task is complete
Uber provides the next distinction. Abelhad cites its statement that 70% of pull requests are AI attributed. That describes AI's involvement, but does not reveal how many pull requests were completed autonomously. She also notes that the reporting period and total count were not disclosed. Without those, the percentage lacks context about the population it describes.
The automation ladder separates several claims that a single percentage can blur:
- AI drafted the work. The system produced an initial artifact.
- Humans edited the work. People changed the artifact before it could proceed.
- Humans approved the work. Acceptance still required a person's decision.
- No human intervention. The task completed end to end within a named workflow boundary.
The last claim corresponds to the finance term straight-through processing. Each rung describes a different relationship between machine output and human responsibility.
The named boundary makes the rate inspectable. For code, does completion mean a draft exists, a pull request has been approved, or the change has reached production? A system can finish drafting without finishing delivery. Moving the endpoint changes the work that must succeed without intervention, so a buyer should request the straight-through completion rate for the actual workflow being purchased. “AI attributed” and “autonomous” answer different questions.
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Check whether the automated judge agrees with the people accepting the work
A precise completion definition is only useful if the measurement recognizes acceptable work. Abelhad cites a METR comparison involving four maintainers from three repositories reviewing 296 AI-generated pull requests across distinct issues. Reviewers did not know whether a patch came from AI or a human. After adjustment to the human baseline, the comparison found a 24-percentage-point gap between automated grading and merge decisions: the automated grader was substantially more optimistic than the maintainers responsible for accepting the changes.
Her own anonymous project example makes that disagreement tangible. Ten out of ten outputs passed automated validation. When domain experts reviewed them, only a few survived. No exact expert acceptance count is given, so the example establishes a mismatch rather than a reusable failure rate. The outputs had satisfied the automated check; expert review changed the assessment of whether they were good enough.
Evaluation maturity therefore becomes a credibility signal. The useful questions examine how the quality standard reaches the measurement:
- Ground truth: Who labeled the reference judgments, and who defined acceptable quality?
- Expert agreement: Do domain experts agree with the automated judge, and is that agreement measured?
- Judge validation: What was the automated evaluator validated against?
- Escaped failures: What bad output passed the checks anyway?
An automated pass rate becomes more informative when the buyer understands its relationship to expert acceptance and the failures it misses.
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A warning has to change the decision
Builder.ai introduces the organizational problem: identifying a warning is different from making it a decision gate. Abelhad traces public questioning of its AI capabilities back to The Wall Street Journal in 2019. She then cites a May 2025 Financial Times report that its estimated 2024 revenue had been revised from $220 million to roughly $55 million, followed by a Chapter Seven filing on June 2.
This chronology does not establish that weak AI positioning caused the collapse. Revenue and financing issues extended beyond the AI claims. The diligence lesson is narrower: a warning must affect whether a claim is accepted, tested further or used to justify a commitment. A process that notices concerns without turning them into a gate can leave the original pitch doing the decision-making.
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Price the accepted autonomous task, including the failures
Even a credible automation claim must survive the economics. Start with the value of the workflow eligible for automation. Then account for actual adoption, straight-through processing success and accepted quality. Each condition narrows the value the company can realize: eligible work must actually use the system, complete without intervention and meet the acceptance standard. Subtract AI costs and the human costs of review, escalation and rework.
The resulting operating metric is cost per accepted autonomous task. Expressed as a ratio, its numerator includes AI costs plus human review, escalation and rework; its denominator counts accepted tasks completed autonomously inside the named boundary. Failed attempts still incur costs even when they contribute no accepted autonomous completion. An escalated or reworked task therefore cannot disappear from the cost account simply because it missed the success criterion.
That gives the next vendor or investment meeting a concrete sequence. Compare workload with fully loaded labor. Identify the automation rung and request a straight-through rate within a named workflow. Ask who defines quality, whether experts agree and what bad output escapes. Translate the claims that survive into unit economics, then decide whether to believe them, test them or walk away. Abelhad's closing question is the useful one to carry into the room: “what must be true for the number to matter.”
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Read the complete timestamped transcript
- 0:00
My name is Soukaïna, and I'm an AI tech lead. And today, I'm here to talk about what technical due diligence finds when the deck says seventy percent automated. Someone has probably shown you a number like this, fifty-five point eight percent faster, and you've been wondering whether to believe it or not. Well, this one comes from a controlled experiment with ninety-five professional developers, but the task was one JavaScript HTTP server built from a template against twelve visible tests. Today, I'll give you three checks
- 0:30
for what technical due diligence finds in the AI era.
- 0:35
I've actually spent more than eight years on both sides of the question. On a front side, I build AI system that investment professional use. On a build side, I now lead AI evaluation in production and help create the numbers that reach executives. The dangerous number is not always fabricated. It's often a genuine measurement carried into a conclusion it cannot support. Chen Chong described the buyer side in a nice way, "Build for the memo, not for the demo." I want to extend that standard to operational
- 1:05
metrics, and the first check requires no knowledge of models. It's pure arithmetics.
- 1:13
In Faros' observational data, high AI adoption teams merged ninety-eight percent more pull, pull requests. Pull request review time increased by ninety-one percent, and the average pull request became one hundred and fifty-four percent larger. And this sample covered more than ten thousand developers across one thousand two hundred and fifty-five teams. This does not prove that AI increased headcount. It's an observational telemetry, not a controlled labor study. But it still give us a warning. More work
- 1:43
entered the system, and the downstream review burden grew with it as well. So in diligence, ask for the company's own eighteen-month theory. Put workload volume next to the fully loaded human labor. Count everyone whose work exists because of AI, for example, operators, reviewers, reviewers, trainers, escalation, and rework. If human labor tracks workload volume, the deck has described assistance, not labor removal. But when the arithmetic survives, the
- 2:13
definition call still can fail.
- 2:19
Uber, for example, says that seventy percent of its pull requests are AI attributed. This is impressive. It still does not tell us the full autonomous rate. The period and total count were not disclosed either. So every automation claim sits somewhere in this ladder. It's either AI drafted it, or edited by humans, or approved by humans, or no human intervention. Finance already has a useful term for the last one. It's called straight-through processing.
- 2:49
Define it as a complete end-to-end without human intervention inside a boundary you name. So does the boundary here ends when the code was drafted, or when the pull request is approved, or when the change reaches production? So remember, AI attributed and autonomous are two different claims. Okay, now suppose the definition is precise. Can we trust the measurement? METR found a twenty-four percentage-point gap between automated grader and merge decision after adjustment to the
- 3:19
human baseline. Four maintainers from three repositories review two hundred and ninety-six AI-generated pull requests across different unique issues. They did not know whether the patch came from AI or human. The automated grader was substantially more optimistic than the people responsible for accepting the work. Not a surprise. I have seen the same thing from the other side. One of the project I worked on, ten out of ten output would pass the automated validation. Once you bring the guest... the experts on the table,
- 3:49
barely few survive. This is why evaluation maturity is the first credibility signal I would look for. So always ask who labeled ground truth and whether the expert agrees and whether anyone measures that agreement. Ask what the automated judge was validated against, and ask what bad output escaped. So when arithmetics, definition, and evaluation all fail, a warning still has to become a decision, right?
- 4:16
This is not a claim that weak AI positioning caused Builder.ai collapse. Its insolvency involved revenue, financing, issues beyond AI claims. The diligent lesson started way back in two thousand and nineteen when The Wall Street Journal publicly questioned the claim of the AI capability. In May twenty twenty-five, the Fin- the Financial Times also reported that its twenty twenty-four revenue estimated had been revised from two hundred and twenty million dollars to roughly fifty-five million
- 4:46
dollars. On June second, the company filed Chapter Seven. So the warning existed, but the process did not turn it into a gate. So even when a claim survives those check, it still has to survive the economics.
- 5:04
So start with eligible workflow value. Apply actual adoption, straight-through process success, and accepted quality. Then subtract the cost of AI, human review, escalation, and rework. The metric I would want is cost per accepted autonomous task. If the task fails, escalates, or need rework, this belongs to the cost. So always put those checks together, and this is the card I would probably take with me to the next meeting.
- 5:36
To sum up, three main checks. The arithmetics. Compare workload volume with fully loaded human labor. Two, definition. Identify the rung and request the straight-through rate inside a named workflow. Three, the tell. Ask who defines quality, whether expert agrees, and what bad output escapes. Then translate only the surviving claims into a unit economics. And of course, believe it, test it, or walk away. The printable card and all the source notes
- 6:06
are in the website, and this QR code will lead you to it. So take the card, scan it, print it, and take it to your next vendor meeting or investment discussion. And always remember, the job of diligence is not to ask whether the number is impressive. It's to ask what must be true for the number to matter. Thank you.