AI reduces software development time by up to 50%, survey finds

A joint survey by OutSystems and KPMG has revealed that 75% of software executives have noticed a reduction of up to 50% in development time through the implementation of artificial intelligence (AI) and automation in the software development lifecycle (SDLC). The survey, titled “AI in software development: Exploring opportunities and uncertainties,” assessed the integration and impact of AI in the industry.

The survey gathered responses from 555 software executives across various sectors, including IT consultancy services, manufacturing, banking, financial services, and insurance. The timeframe for the initial incorporation of AI technologies ranged from six months to five years ago, with IT services companies being among the earliest adopters. Regionally, the adoption rates in Europe, the Middle East, and Africa (EMEA) and North America were found to be comparable, while the Asia-Pacific (APAC) region is steadily catching up.

According to the findings, the most common use cases for AI in software development include testing, quality assurance, and security vulnerability detection. The report also highlighted the potential of generative AI (GenAI) to significantly enhance these processes and introduce new capabilities. It noted that early adopters are planning to expand their use of AI to other stages of the SDLC, such as user interface design, code generation, DevOps optimisation, and application maintenance. Nearly all respondents indicated plans to boost investment in AI-augmented SDLC management over the next two years.

Paulo Rosado, CEO and founder of OutSystems, noted, “AI is redefining the impossible. I’m laser-focused on helping teams compress multi-year legacy modernisation projects into just a few months. The latest AI disruptions have brought us the potential to compress these development timelines into even shorter and faster projects. With AI, historically impossible transformation projects are not only possible but easier, cheaper, and faster to accomplish.”

The survey also revealed that 71% of respondents plan to integrate AI into application development and SDLC management workflows. Rodrigo Coutinho, Co-founder and AI Project Manager at OutSystems, remarked, “Right now, the developer’s role is shifting from code writer to code reviewer. Large language models (LLMs) are a big help, but they still make mistakes. But as these models evolve, and trust in the resulting code improves, the developer’s role will be more akin to that of an orchestrator and acceptance tester of AI-generated outputs.”

Despite AI being a nascent technology until recently, confidence in AI-generated code quality has significantly increased. Half of the respondents reported improved software quality, enhanced decision-making, and increased efficiency in software testing and quality assurance attributable to AI. Nonetheless, the report also highlighted concerns, including 'tech debt' in the form of orphan code and hallucinations, and challenges related to scalability and organisational-specific coding needs.

Data privacy and security concerns (56% of respondents) and regulatory and compliance challenges (42%) were identified as the primary barriers to wider AI adoption in the SDLC beyond software testing and vulnerability detection. Additionally, 38% of executives cited difficulties integrating generative AI into existing workflows as a significant barrier.

Michael Harper, Managing Director at KPMG U.S., commented on the survey’s findings, saying, “There’s a lot of speculation on what will change with the rise of GenAI. While there will be challenges, those with effective change management initiatives will reskill and upskill their workforces, leading to AI and jobs evolving in tandem.”

The survey also touched on concerns regarding the reliability of AI-generated code. Existing approaches such as user acceptance testing, unit testing, and regression testing can help mitigate some of these issues. Coutinho added, “It’s up to the developer working with AI to guarantee the quality of the deliverables, but this becomes way more efficient with AI. AI is, in fact, a great partner in creating tests in synthetic data.”

Despite concerns about job losses, with 89% of respondents believing certain roles will be eliminated by AI, the report suggests that, in the long term, AI may create more jobs than it displaces by fostering a new type of developer equipped with specialised AI skill sets.