Generative AI expected to boost software development efficiency by 20-40%: Axis Capital report

Generative AI (GenAI) has the potential to deliver significant cost savings of 20-40% across the software development lifecycle, according to a report by Axis Capital. These efficiency gains are expected to be reinvested into innovative technologies, driving further advancements in the tech sector without reducing overall spending.

The report, titled "GenAI: Millennial Shapeshifter to Transform Services," highlights that productivity gains from AI are already being realized. A study of 5,000 developers across three organizations showed a 26% increase in productivity when AI tools were utilized.

"GenAI’s efficiency savings are likely to be reinfused into tech innovation, ensuring no risk of compressed spending in the industry," the report noted.

Interest in AI adoption is growing rapidly. Microsoft GitHub Enterprise reported a 100% increase in client interest for AI-driven projects over 18 months, alongside an 11.5% rise in actual usage.

With AI's transformative impact, businesses are poised to leverage these advancements for both cost savings and enhanced innovation, ensuring sustained growth in the technology sector.