The software industry is on the cusp of a transformative shift as generative AI (Gen AI) gains prominence. According to the latest report from the Capgemini Research Institute, Gen AI is set to revolutionize software design, development, and testing. This is going to free up valuable time for software professionals and will boost collaboration across teams.
Capgemini Report: Key Findings
A staggering 85% of the software workforce is expected to adopt generative AI within the next two years. Organizations recognize its potential to automate repetitive tasks and transform software engineering functions.
Three out of five organizations view innovative work as the primary benefit of using generative AI. By automating mundane tasks, software professionals can focus on higher-value activities.
Gen AI bridges the gap between technical and non-technical teams. 78% of software professionals believe it will enhance collaboration.
Organizations with active Gen AI initiatives report a 61% improvement in fostering innovation. They are also seeing enhancements in software quality.
On average, software engineering functions have experienced productivity improvements ranging from 7% to 18%. For specialized tasks, time savings have reached as high as 35%.
Strategic Shifts
Organizations plan to utilize the time freed up by Gen AI for:
- Developing new software features (50%)
- Upskilling employees (47%)
- Reducing headcount (though this is the least-preferred route, with only 4% of organizations considering it)
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New roles are emerging, including generative AI developers, prompt writers, and generative AI architects. Both senior and junior software professionals express satisfaction with Gen AI. While 69% of senior professionals and 55% of juniors see it as a powerful enabler.
While coding assistance remains a key use case, generative AI extends to other software development activities, such as code modernization and user experience design.
Risks and Governance
Unauthorized Usage: 63% of software professionals admit to using unauthorized Gen AI tools. Lack of proper governance exposes organizations to functional, security, and legal risks.
Transparency and Accountability: Organizations planning to implement AI agents (autonomous tools) should establish safeguards to ensure transparency and accountability for AI-driven decisions.
Capgemini: Methodology
The Capgemini Research Institute conducted a comprehensive survey involving 1,098 senior executives and 1,092 software professionals. Industry leaders, partners, and startup representatives have participated in 20 in-depth interviews.
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Generative AI is poised to reshape the software industry, and organizations must balance its potential benefits with responsible usage. As the industry embraces this transformative technology, collaboration, innovation, and productivity will define the future of software engineering.
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