CFOtech Asia - Technology news for CFOs & financial decision-makers
Story image

Generative AI to reshape 85% of software workforce by 2025

Thu, 11th Jul 2024

Capgemini has released a new report indicating that generative AI (Gen AI) is projected to be adopted by 85% of the global software workforce within the next two years.

The report is based on a survey of 1,098 senior executives and 1,092 software professionals.

A significant finding from the report is that 80% of software professionals believe Gen AI tools and solutions will substantially alter their roles by automating simpler, repetitive tasks. This, they say, will free them to concentrate on higher-value tasks. "Generative AI has emerged as a powerful technology to assist software engineers, rapidly gaining adoption," stated Pierre-Yves Glever, Head of Global Cloud & Custom Applications at Capgemini. "Its impact on coding efficiency and quality is measurable and proven."

The adoption of generative AI in software engineering is still in its nascent stage, with nine out of ten organisations yet to scale their efforts. However, those with active Gen AI initiatives are already experiencing numerous benefits. According to the report, 61% of such organisations noted that Gen AI fosters innovation, while 49% reported improvements in software quality. Organisations have observed productivity improvements of 7% to 18% on average in their software engineering functions, with some specialised tasks seeing as much as a 35% time-saving.

Organisations plan to use the additional time generated by Gen AI for innovative tasks, such as developing new software features (50%) and upskilling their employees (47%). Reducing headcount is the least favoured route, with only 4% of organisations considering this option. New roles like generative AI developer, prompt writer, and generative AI architect are also beginning to emerge.

Generative AI also promises to improve communication and collaboration between tech and business teams. A considerable 78% of software professionals are optimistic about Gen AI's potential to enhance teamwork and partnership with non-technical business units. Functions such as explaining code in natural language and facilitating better conversations are seen as beneficial outcomes of Gen AI integration.

Currently, 46% of software engineers are using Gen AI tools to assist with tasks, and nearly three-quarters view the technology's potential beyond merely writing code. Use cases extend across the software development lifecycle, including code modernisation and user experience (UX) design. Both senior and junior software professionals report higher satisfaction levels due to Gen AI use, with 69% and 55% respectively acknowledging its role as an enabler and motivator.

However, the report flags a significant concern: 63% of software professionals admitted to using unauthorised Gen AI tools. This unregulated adoption poses risks related to security, potential code leakage, and intellectual property issues. "The true value will emerge from a holistic software engineering approach, beyond deploying a single new tool," Glever added. "This involves addressing business needs with robust and relevant design, establishing comprehensive developer workspaces and assistants, implementing quality and security gates, and setting up effective software teams."

The survey, conducted by the Capgemini Research Institute, also included 20 in-depth interviews with industry leaders, partners, and software professionals. The findings underscore the growing adoption and potential of Gen AI to transform the software industry, driving efficiency, quality, and innovation.

Follow us on:
Follow us on LinkedIn Follow us on X
Share on:
Share on LinkedIn Share on X