“How many of you are using AI in your software supply chain? Most of you. If you are not — or planning to shortly — you should probably leave the room.”

That was the blunt challenge from Shlomi Ben Haim, CEO of JFrog, on stage at swampUP in Napa last week. It wasn’t just a dramatic soundbite — it was a reflection of the urgency digital leaders face today. Ben Haim underscored the point with fresh data: According to Gartner, 40% of CIOs are increasing their budgets due to pressure from their boards to embrace AI. Boards don’t want experiments anymore; they want strategies, roadmaps and results.

Moments later, JFrog co-founder Yoav Landman added more fuel to the fire, citing that Microsoft and Google now say roughly 30% of their code is being generated by AI. Think about that — nearly a third of the code written by two of the world’s most important software companies isn’t written by humans at all.

The message couldn’t be clearer: If you’re a digital leader and you’re not already embracing AI — or at least planning how to — your success is doubtful.

AI in the Software Supply Chain: From Novelty to Necessity

AI in software development isn’t some futuristic vision. It’s here, and it’s already institutionalized. With the release of JFrog Fly, billed as the industry’s first “agentic repository,” AI has officially become a first-class citizen in the software supply chain. Fly reimagines how artifacts, releases, and automation can work in AI-native workflows, offering semantic release management, zero-config delivery, and seamless integration with AI tools like GitHub Copilot and Claude Code.

And JFrog isn’t alone. Across the industry, AI is creeping into every layer of development: Copilots generating code, AI-powered testing frameworks, compliance engines automating governance, and machine learning optimizing pipelines.

The point is no longer if AI has a role in development — it’s how much of your development process is AI-enhanced, and whether you have the leadership, governance and strategy to make it a differentiator rather than a liability.

What Digital Leaders Need to Understand

If you’re a CIO, CTO, or digital transformation leader, there are three truths you can’t ignore:

1. AI is not optional. Your competitors are already using AI to deliver faster, more secure and higher-quality software. If you’re not, you’re behind.
2. Governance matters as much as adoption. AI without oversight is a recipe for risk. Announcements like JFrog AppTrust, which integrates evidence-based policies into release management, highlight how governance must be embedded from the start.
3. Your board is watching. Gartner’s stat on CIO budgets proves it: Boardrooms are demanding AI strategies. Leaders who can’t articulate a clear roadmap risk not only falling behind competitors but also losing confidence at the highest levels of their organizations.
   

So, What Should Leaders Do?

If you haven’t already started implementing AI in your software supply chain, here’s a practical roadmap:

1. Start with a Clear Assessment

• Audit where AI is already in use (your developers may already be using Copilot or other tools).
• Identify bottlenecks — manual testing, release management, compliance checks — that could be accelerated with AI.

2. Define Governance Early

• Establish policies for AI-generated code and ensure every piece of output is reviewed and tested.
• Leverage platforms like AppTrust that integrate compliance and evidence collection into pipelines.

3. Pick Strategic Pilot Projects

• Start small but meaningful: automated testing, vulnerability detection, or AI model governance using solutions like JFrog’s AI Catalog.
• Measure outcomes and expand iteratively.

4. Build the Right Partnerships

• Your ecosystem matters. Are your vendors and partners integrating AI responsibly? JFrog’s partnerships with NVIDIA, ServiceNow, and Sonar illustrate how ecosystems can scale trust and innovation.
• Don’t go it alone — use alliances to accelerate responsibly.

5. Educate and Empower Your Teams

• AI adoption is a cultural shift. Developers, security teams and operations staff need training to use these tools effectively.
• Make AI part of your organizational DNA, not just a side experiment.
  

Shimmy’s Take

I’ve seen plenty of hype cycles, but this isn’t one of them. AI isn’t hype anymore — it’s habit. The real question is not whether AI will replace developers (spoiler: it won’t, unless we let it). The question is whether digital leaders are equipping their organizations to use AI effectively, responsibly, and at scale.

What struck me at swampUP was not just JFrog’s announcements — JFrog Fly, AppTrust, the AI Catalog and the Evidence Ecosystem—but the sense of inevitability. Boards are applying pressure. CIOs are upping budgets. Microsoft and Google are already there. The time for “wait and see” has passed.

Closing Thought

Back on stage, when Shlomi told those not embracing AI to “leave the room,” he wasn’t being flippant. He was pointing out a simple truth: In 2025, AI isn’t a nice-to-have — it’s a must-have.

The question is, as a digital leader: Are you still in the room — or are you already falling behind?