"software factory" has always been a completely broken metaphor.

Writing software is like building a factory. You try to find the optimal process to do something. This is a creative process and can never be straight forward. Using the software is running the factory.

This won't change with AI, since you never now all requirements beforehand and you always will have to iterate.

The only reason people are selling software factories is that customers like to imagine that this was possible. That a creative, iterative process can be perfectly planable and predictable.

This is just wrong.