Generative AI (GenAI) has the potential to yield savings of 20-40% during the software development lifecycle, and the efficiency gains derived from these savings are expected to be reinvested into technological innovation, as indicated by a report from Axis Capital. This suggests that rather than constraining technology spending, GenAI will likely promote further investment in tech advancements.
“GenAI could produce savings ranging from 20-40% in the software development lifecycle. According to Axis Capital’s institutional research, there is no indication that tech expenditures will be reduced, with these savings being reinvested into new technologies for enhanced business outcomes,” stated the report titled ‘GenAI: Millennial Shapeshifter to Transform Services’.
Researchers from esteemed institutions monitoring productivity improvements across around 5,000 developers in three organizations found that AI has increased software developer productivity by 26%.“The interest in and implementation of AI is expanding swiftly – Microsoft GitHub Enterprise reported a 100% rise in client interest in AI initiatives over an 18-month span, with actual usage increasing by 11.5%,” the report highlighted.
