How AI in Software Development changed an industry

AI in software development has reshaped the industry

The technology sector is undergoing one of the most significant transformations of recent decades.

Software development services have entered a new phase, where efficiency, execution speed, and project complexity are reaching levels that would have been unimaginable just a few years ago.

In 2024, Google’s DORA report confirmed that 89% of organizations were prioritizing the integration of AI into their applications, and 76% of technologists were already relying on AI in some part of their daily work. The same report discovered that the most common use of Gen Artificial Intelligence is for writing code, with 67% of respondents reported that AI is helping them improve their code.

In 2025, we analyzed that organizations no longer prioritized the integration of AI into their applications but over 80% of them already have moved toward a full integration and adoption. Moreover, 99.5% of technologists were using AI tools in their daily jobs.

How AI Enhances Efficiency in the IT Sector

In the IT industry, one of the most significant changes brought by AI in software development is the increased efficiency of technical teams. LLM-based models can assist developers across multiple stages of the workflow:

• fast code and prototype generation
• debugging and error detection
• automated technical documentation
• accelerated testing
• performance optimization
• architectural analysis and scalable recommendations

This does not mean replacing specialists, but rather amplifying their capabilities. A skilled developer can produce more, faster, and with fewer bottlenecks, which is redefining the standards of modern software development services.

Google’s DORA has provided some outstanding metrics to analyze, detailed below. A 25% increase in AI adoption is associated with:

• • 7.5% increase in documentation quality
  • 3.4% increase in code quality
  • 3.1% increase in code review speed
  • 1.3% increase in approval speed

• 1.8% decrease in code complexity

What seems clear in these patterns is that Artificial Intelligence helps people get more from the documents they depend on and the codebases they work on. AI also helps reduce costly bottlenecks in the code review and approval process.

Smaller Teams and Faster Deliveries

Another direct impact of AI in software development is the ability of software companies such as ourselves, to deliver significantly more complex projects in a shorter timeframe.

Areas such as web software development, enterprise applications, internal automation, SaaS platforms, and integrated systems are becoming more accessible and faster to implement.

Today, a well-organized team that leverages AI in its internal processes can build in a matter of months what previously required a year or more with a major productivity boost.

This advantage is especially visible in projects that include:

• API integration across multiple systems
• automation between ERP, CRM, and external platforms
• business intelligence dashboards
• complex data flows and data processing
• AI integration into existing products
• rapidly launched MVPs for market validation

In other words, AI is raising the performance ceiling of development teams

Team Productivity

We found that developers who more extensively use gen AI in their daily work, reported more time in a flow state, higher overall job satisfaction, increased productivy and less burnout.

The Industry Shift: Skilled and Passionate Professionals Remain

At the same time, the IT industry is undergoing a natural selection process. In recent years, many companies hired aggressively during periods of rapid growth.

Now, with AI being integrated into internal processes, organizations are optimizing their structures and phasing out roles that do not deliver real value.

This creates a new context: it is no longer enough to simply be part of a technical team. The real value contributed to projects is what matters.

The professionals who remain relevant are those who:

• understand the client’s business
• design solid architectures
• deliver concrete results
• continuously learn
• use AI intelligently, not superficially
• have a genuine passion for technology and digital products

This shift favors mature teams and performance-driven companies in the software development space.

Why Are Major IT Companies Reducing Technical Teams?

An increasing number of global companies are scaling down certain operational or technical segments. The reason is not necessarily a decline in demand, but rather the fact that AI enables the same outcomes with more efficient structures.

A process that previously required an extended team of 10 developers, 3 QA specialists and 2 technical project managers, can now be supported by a more compact team, assisted by advanced AI tools.

At the same time, investments are growing in strategic areas such as:

• product development
• cybersecurity
• AI engineering
• Data systems
• Enterprise automation
• Scalable platforms

This is the industry’s new economic model.

This is a Historic Moment

In the early 2000s, companies that quickly understood the internet captured entire markets. That is known as the DOT.COM Era, when major companies were formed, built from the ground up and shaped into what they are today. Now, we are witnessing a similar moment, but on an even larger scale and at a much faster pace.

AI in software development is not just transforming a single business channel; it is reshaping how products, teams, processes, and the speed of innovation are built.

Companies that are now investing in:

• modern software development services
• operational automation
• API integration across systems
• AI integration into products and internal workflows
• callable digital platforms

…will be the leaders of the next decade.

What This Means for Companies

For businesses, the message is clear: now is the right time to build, optimize, and go digital.

Whether we are talking about web software development, custom applications, marketplaces, internal systems, or SaaS products, AI in software development is reducing execution costs and increasing time-to-market.

Instead of delaying digital transformation, the current moment represents the best opportunity in the past 20 years.

Conclusion

The IT industry is not disappearing. It is maturing. It is becoming more competitive, more efficient, and more focused on real value delivery.

Gen AI in software development does not fully replace people; it highlights the truly skilled ones. Capable teams can now deliver faster, better, and more complex solutions than ever before.

For companies looking for partners in software development services, this is the ideal moment to collaborate with teams that understand both traditional technology and the new era of intelligent automation.

This article is based on our own findings and research as well as on DORA Generative AI Impact Report in Software Development, published by Google.