The use of generative artificial intelligence (generative AI) in software development is overwhelming, with 94% of business leaders adopting it in some capacity, according to a new report from MIT Technology Review Insights.

The report, titled “Transforming software with generative AI,” was produced in partnership with IT services company Globant and is based on a survey of 302 executives from a range of industries worldwide.

It highlights how generative AI is already influencing the software development lifecycle (SDLC) and what advancements can be expected in the future. The report is informed by in-depth interviews with industry experts from companies such as GitHub, Amazon Web Services, the International Data Corporation, MIT, Google, and Globant.

“There’s an equivalency between what’s going on with AI and when digital transformation first happened,” said Globant chief digital officer Carolina Dolan Chandler. “AI is an integral shift. It’s going to affect every single job role in every single way. But it’s going to be a long-term process.”

The survey found that although generative AI is widely used, substantial changes in the SDLC are still anticipated. Only 12% of respondents said that generative AI had fundamentally changed how they develop software today. However, 38% believe that generative AI will substantially change the SDLC in the next one to three years. An additional 31% expect this transformation to take place within four to ten years.

Generative AI adoption in the SDLC is widespread. While 20% described generative AI as an “established, well-integrated part” of their SDLC, 33% indicated it was “widely used” in at least part of the SDLC.

Nearly 29% are still conducting small pilots or adopting generative AI on an individual-employee basis rather than across teams. A significant number, 82%, reported using generative AI in at least two phases of the SDLC, with 26% using it across four or more phases.

Generative AI is not only used for code generation but also in other aspects of software development. The report found that 65% of respondents are using generative AI for designing and prototyping, and 59% are using it for ideation and requirement development. Additionally, 45% are employing generative AI for testing and quality assurance, and 25% are using it in the deployment phase. However, only 14% are using generative AI for maintenance and updates, indicating that there are still areas where adoption is lagging.

Performance of generative AI in meeting expectations

The “Transforming software with generative AI” report also highlights that generative AI is already meeting or exceeding expectations for many organisations. Specifically, 46% of respondents stated that generative AI is meeting their expectations in software development, while 33% said it exceeds or greatly exceeds expectations. Only 14% of respondents reported that generative AI fell below expectations.

Looking ahead, 49% of business leaders said that they expect advanced AI tools like AI agents and assistants to lead to efficiency gains or cost savings, and 20% believe such tools will improve throughput or lead to faster time to market. Furthermore, 87% of respondents expect advanced AI tools to provide greater efficiency or cost optimisation, while 69% anticipate improved throughput and faster time to market for new products.

The survey also explored the future impact of generative AI on the SDLC. More than one-third (38%) of respondents expect substantial changes to occur within the next one to three years, while 31% believe it will take four to ten years for these changes to materialise. A small percentage (8%) believe that generative AI has already brought about substantial changes. Overall, the findings suggest that while adoption is widespread, there remains significant room for growth in how generative AI is utilised throughout the SDLC.

Meanwhile, a separate survey by MIT Technology Review Insights, this in partnership with Snowflake, revealed that 78% of global companies are not “very ready” to support the deployment of generative AI. This is despite expectations that generative AI will transform business processes, mainly due to weak data strategies.

Meanwhile, a separate survey by MIT Technology Review Insights, conducted in partnership with Snowflake, revealed that 78% of global companies are not ‘very ready’ to support the deployment of generative AI. This hesitancy persists despite expectations that generative AI will transform business processes, largely due to weak data strategies.

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