AI may turn legacy codebases into liabilities: Zoho founder Sridhar Vembu

The foundations of modern software development may be under threat as generative artificial intelligence evolves rapidly, according to Sridhar Vembu, founder of software-as-a-service company (SaaS) Zoho. In a series of posts on social media platform X, Vembu said that large, existing codebases, long considered prized assets, could soon become burdens.

“If AI makes us 100x productive, why not rewrite the whole thing with AI help?” Vembu asked, highlighting a potential shift in enterprise software strategy. With generative AI tools now able to write new code at high velocity, companies may find it more efficient to start from scratch rather than maintain legacy systems.



This view counters a common concern in the tech industry that AI is currently poor at navigating complex, existing code structures. Vembu acknowledged the limitation but suggested it will not last. “It is not there yet, but perhaps not for long,” he said.

“Viewed that way, large existing codebases may no longer be assets,” he said. “They may be liabilities.” He pointed to AI-powered tools such as Zoho Creator and Google AI Studio, which are now capable of building standard CRUD (create, read, update, delete) applications with minimal human input.

Having recently stepped back from his role as chief executive officer to focus on research, Vembu has been vocal about AI’s growing role in software development. He has predicted that generative AI could eventually handle up to 90% of coding tasks, especially boilerplate code that consumes much of a developer’s time. However, he noted that essential complexity, such as innovative and creative work, would still require human input.

The Zoho founder warned developers not to count on high salaries or long-term job security. As AI reshapes the software development landscape, he urged the industry to stay vigilant or risk becoming obsolete.