This episode explores the impact of "vibe coding," a new approach to software development leveraging AI code generation tools, on the future of software engineering. Against the backdrop of rapidly evolving AI capabilities, the panelists discuss a survey of Y Combinator founders revealing that a significant portion utilize AI for over 95% of their codebase. More significantly, the discussion highlights a shift in the role of software engineers, with many transitioning to product engineering roles focused on user needs and product vision, while others specialize in system architecture and debugging. For instance, the founders' quotes illustrate this division, emphasizing the importance of product sense over coding proficiency. In contrast, the panelists also note that current AI tools struggle with debugging, requiring human intervention, and that the ability to critically evaluate AI-generated code remains a crucial skill. This leads to a discussion on how engineering hiring practices must adapt to this new reality, moving away from traditional technical assessments towards evaluating product sense and systems thinking. Ultimately, this episode suggests that while AI is revolutionizing software development, the need for skilled engineers with strong systems understanding and critical thinking remains vital for scaling successful products.