Generative AI is transforming the software development lifecycle (SDLC), according to a new report from MIT Technology Review Insights, a division of MIT Technology Review that conducts research and analysis to create content about technology. The report finds that more business leaders are using AI to help assist in the creation of new software.

New data shows that 94 percent of leaders use generative AI for software development, but despite this, only 12 percent of respondents said that generative AI has “fundamentally” changed how they develop software. 

"There's an equivalency between what's going on with AI and when digital transformation first happened," observed Carolina Dolan Chandler, chief digital officer at Globant, a multinational IT and software development company. "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."

Generative AI is used in several key areas of software development, including design and prototyping at 65 percent, code generation at 61 percent, and ideation and requirement development at 59 percent.

The report noted that future gains in the use of AI in developing software are widely anticipated, with 38 percent of respondents believing generative AI will “substantially” change the SDLC across most organizations in one to three years.

The use of generative AI in SDLC is “nearly universal” according to the report, but adoption is less comprehensive. Ninety-four percent of respondents report they are using generative AI for software of development in some capacity, while 20 percent said the technology is an "established, well-integrated part" of their SDLC. Nearly 33 percent said they “widely used” generative AI in at least part of their SDLC.

AI technology was most used in the writing of software. Nearly 82 percent of respondents said they are using generative AI in at least two phases of the SDLC, and 26 percent of respondents said they are using it across four or more phases.

"While generative AI is already widely used in software development, its full impact is still to come," said Laurel Ruma, global director of custom content for MIT Technology Review.

The response to generative AI in the development of software has been mostly positive, with 46 percent of respondents reporting generative AI is already meeting expectations. Meanwhile, 49 percent of tech leaders said they believe advanced AI tools, such as assistants and agents, will lead to efficiency gains or cost savings, according to the report.

"As adoption continues to grow, with 94 percent of companies already incorporating generative AI in some capacity, the next few years will be pivotal in redefining the SDLC,” said Ruma.