Generative AI (GenAI) could generate savings of 20-40% in the software development lifecycle, and savings from efficiency gains will likely be ploughed back into the business to chase more tech innovation, according to Axis Capital report. Given that savings are expected to be infused back into innovative tech for better business, GenAI is unlikely to compress tech spending.
“GenAI could generate savings of 20-40% in the software development lifecycle. Axis Capital’s institutional research sees no risk to tech spends with these savings being ploughed back into innovative tech for better business,” said the report titled ‘GenAI: Millennial Shapeshifter to Transform Services’.
Researchers from leading institutes who tracked productivity gains across about 5,000 developers in three organisations found AI boosted software developer productivity by 26%.
“Interest in and use of AI is growing rapidly – Microsoft GitHub Enterprise saw client interest in AI projects grow 100% in an 18-month period with actual use growing 11.5%,” the report cited.
