The new software generation: The true value of Gen AI in software development

Delve into how generative AI is reshaping software engineering, with a particular focus on its impact on people.

How is Generative AI improving developers’ productivity and job satisfaction? 

Gen AI is not only enhancing productivity but also significantly improving job satisfaction among developers. Many software professionals report that Gen AI makes their work more enjoyable by automating tedious tasks and allowing them to focus on more creative and fulfilling aspects of their jobs. This technology is fostering better collaboration between business and technology teams by acting as a translator, generating documentation, user stories, and code snippets based on business inputs.

The time-saving potential of Gen AI in software engineering

Generative AI was initially predicted to cut coding time dramatically, but real-world results show more modest gains. While productivity improvements are evident, time savings alone are not the primary benefit. Instead, adoption varies depending on tools, context, and task complexity.

Key insights:

• Early reports predicted up to 50% faster coding, but actual gains are lower.
• Productivity benefits are the strongest in coding assistance and specialized tasks.
• Effectiveness depends on the choice of Gen AI tools and integration into workflows.
• Adoption is still in the early stages, with many organizations piloting solutions.

Level of adoption of generative AI in software engineering

Is Gen AI replacing software engineers?

The concern that generative AI will replace software engineers has not materialized. Only 4% of organizations intend to reduce headcounts using Gen AI. Instead, companies are using it to create opportunities:

• 50% aim to develop new software features.
• 47% plan to upskill employees.
• New roles are emerging, including AI Developer, Gen AI Architect, AI Platform Architect, and Prompt Engineer.

Existing roles like Software Engineers are evolving, now requiring prompt engineering skills. Challenges persist:

• Lack of defined architecture can cause scalability and repeatability issues.
• 63% of developers use unapproved tools, raising legal, security, and compliance risks.
• Employees are upskilling faster than organizations, with 41% learning independently and 40% funding their own training.

Structured upskilling programs and a culture of continuous learning are essential to maximize Gen AI’s value.

How AI-augmented software teams are transforming development

AI-augmented software teams integrate human expertise with advanced AI capabilities to enhance every stage of the software development lifecycle. Developers work alongside Gen AI, using prompt engineering and automated code completion while maintaining creativity. Team members review each other’s outputs, and senior developers provide final validation, ensuring quality, smooth workflows, and effective team dynamics.

Key benefits of AI-augmented teams:

• Enhanced efficiency through automation: AI handles repetitive coding, testing, and debugging, allowing developers to focus on innovative, high-impact tasks. Team leads can prioritize strategy and scalable architecture.
• Improved code quality: AI analyzes large datasets to detect patterns and potential issues, while generating unit tests to increase test coverage.
• Faster time-to-market: Automation accelerates development cycles, enabling quicker iterations and deployments.
• Informed decision-making: AI-driven insights and predictive analytics support better strategic decisions throughout projects.

This report emphasizes the importance of structured training, robust software architecture, and proactive management of security and compliance risks to fully leverage Gen AI’s potential. By fostering a culture of continuous learning, adaptability, and collaboration, organizations can empower their teams to work efficiently, innovate consistently, and stay ahead in the rapidly evolving software landscape. Download ” The new software generation: The true value of Gen AI in software development” to gain detailed insights.