Generative AI: Redefining the Economics of Software Development

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Efficiency is scaling the list of high priorities amid growing economic and technologic changes. We know the AI boom is happening, but few companies are seeing – or doing – any real-world application of AI technologies. (Other than Big Tech and industry giants, of course.)

Generative AI technology offers a wide range of vertical use cases for software companies, high-tech firms, ISVs, and DNBs to meet efficiency demands and expedite workflows. In fact, a new research study, “Generative AI: Redefining the Economics of Software Development,” from our friends at SoftServe shows Open AI’s Generative AI can increase productivity for development teams across the SDLC (software development life cycle) by up to 45%.

To test the hypothesis that Gen AI is a time-saver and avenue for creativity and efficiency, SoftServe, a global IT consulting and digital services provider, conducted internal research with more than 1,000 associates across seven countries, multiple disciplines, experiences, and responsibilities. Participants were divided into groups categorized by specialization, role, technology, and level; half worked with GPT models 3.5 and 4, while the other controlled group worked without any integrated Gen AI solutions.

Nearly 1,500 experiments later, software development outputs jumped by 45%, integration reduced the time to complete tasks by 31%, and several more productivity increases were recorded by the groups using Gen AI. From code generation and automation to bug detection, documentation, resource allocation, and automated testing, it’s clear AI-powered solutions can – and will – transform the way software is developed. The question is: when will this be applied to more workflows beyond the SDLC?

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  1. This article brilliantly highlights how Generative AI is reshaping software development economics. An exciting read into the future of tech!

  2. This blog post sheds light on the transformative impact of Generative AI on the economics of software development, and it’s heartening to see concrete evidence from SoftServe’s research supporting the notion. The statistics presented are compelling, with a 45% increase in software development outputs and a 31% reduction in task completion time.