Thoughtworks held its second Future of Software Development Retreat in Europe, showcasing a shift from hesitancy to confidence in emerging AI technologies. Participants are now actively using agentic development in production, moving beyond theoretical discussions. This rapid evolution is evident in the emergence of new concepts like "harness engineering" and concerns over token costs.A key debate continues regarding the importance of software architecture and design in the age of AI. One hypothesis suggests AI's "galaxy brain" might render traditional architecture obsolete. Conversely, the idea that AI benefits from human-centric code quality, like modularity and good naming, persists.Measuring design quality through token costs and observing its impact over time are emerging viewpoints. The historical success of 3GL languages highlights a balance between comprehension and computation, and current AI models are the first to truly care about code quality. Understanding LLMs through "mechanical sympathy" is crucial for effective use.A proposed workflow involves backlog stories, agent discussions, an ADR for specifications, task generation, and agent completion. Abstractions are needed for agent communication, and concerns about duplicated code and mixed concerns in LLM output remain. AI models amplify existing code problems, making robust design a hedge against AI dependence and potential cost increases or access disruptions.Ethical considerations of AI, including data sourcing and potential harms like skill atrophy, are discussed. However, the conclusion is that engaging with AI and working to improve it offers more practical benefit than outright rejection. The misuse of DMCA claims for content removal and the escalating financial costs of AI token usage are significant current issues. Companies are exploring ways to mitigate these costs, including using less powerful models or developing cost-control strategies. Finally, the historical context and radical impact of the Declaration of Independence are highlighted, emphasizing the importance of understanding historical documents.