Executive Briefing: State of AI in Cloud Development 2026

A recent survey of enterprise software developers revealed serious concerns about the tech stack supporting agentic AI workflows. In this 45-minute executive briefing, Colin Neagle, Head of Marketing, and Christian Capdeville, Head of Product Marketing, walk through the findings of the State of AI in Cloud Development 2026 report and share recommendations for a cloud development experience that improves the output of agentic AI workflows without sacrificing velocity.

Key findings

• 79% of development teams grant AI agents access to cloud development environments, even though 97% expressed concerns about doing so
• Nearly 40% of AI-generated code never makes it into production, as developers cite quality concerns and ineffective environments for testing code
• Developers showed far less trust in the quality of AI-generated code than people in manager roles, pointing to a gap between perceived and actual AI maturity

What you'll learn

• Why agentic AI is testing the limits of traditional cloud development environments: slow provisioning, shared environments, frequent crashes and drift from production
• How local cloud sandboxes isolate and secure cloud testing for AI agents
• Three examples in practice: local developer environments, autonomous software factories, and reinforcement learning for LLMs
• The metrics software teams use to measure impact: deployment frequency, lead time for changes, production incidents, mean time to resolution and cost

Want the full data? Read the State of AI in Cloud Development 2026 report.

AWS just released Lambda Web Functions, a major update to AWS Lambda. In this session, Samrat Karak, AWS Lambda Product Manager, explains what's new and where Web Functions are most useful. Then see how to run and test them locally with LocalStack before you run them in your cloud environments.

What you'll learn

• What AWS Lambda Web Functions are, and why they matter
• Where Web Functions are most useful, straight from the AWS Lambda team
• How to run and test Web Functions locally with LocalStack
• How to catch issues locally before you run them in your cloud environments
• A live LocalStack demo of a Web Function running end to end, no AWS account required

Developers are used to running kubectl apply and waiting on the magic to happen resulting in a running Kubernetes pod. But what actually happens between entering the command and the deployment being ready? What's the reality behind the "magic"? In this talk, Kiah will dissect all the stages of a Kubernetes deployment in a way that is easy to understand. She'll walk through that deployment happening locally on LocalStack to inspect what's really going on at each stage. At the end of this session, attendees will have a deeper understanding of the Kubernetes deployment process that can help debug many common issues and will gain an understanding of how LocalStack enables local testing of Kubernetes.

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