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Artificial Intelligence in Software Development: Big Shift for Businesses

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AI has changed workflows, business and financial operations, and interactions with customers in various industries, and software development is no exception. Integrating Artificial Intelligence in software development elevates the whole process by creating an intelligent synergy of human creativity and machine efficiency.

Developers who use advanced AI tools can enhance their skills and efforts, focusing on higher-order problem-solving while Artificial Intelligence manages routine and repetitive tasks. This synergy promises faster development cycles and a qualitative shift in the entire software development workflow.

Evolution of AI

1950s: Alan Turing and John McCarthy computer scientists, introduced the concept of Artificial Intelligence (AI).
1960s-1970s: Programs like DENDRAL and MYCIN demonstrated AI’s potential in chemistry and medicine.
1980s: AI research saw the development of knowledge-based systems, which used large databases of knowledge and rules to solve complex problems.
1990s: The focus shifted towards machine learning, a subset of AI that emphasizes learning patterns from data.
2000s: Techniques like ensemble learning and the advent of more sophisticated neural networks (deep learning) shifted tasks like image and speech recognition.
2010s: Advances in hardware (GPUs) and large datasets enabled breakthroughs in image recognition, natural language processing, etc.
2020s: This period shows the advancement and adoption of AI across various industries. AI changes industries and our lives.
Evolution of AI and software engineering

Artificial Intelligence Market Report Scope

Report Attribute Details
Market size value in 2024 USD 279.22 bln
Revenue Forecast in 2030 USD 1,811.75 bln
Growth Rate CAGR of 36.6%from 2024 to 2030
Actual Date 2017-2023
Forecast Period 2024-2030
Quantitative Units Revenue in USD billion/million and CAGR from 2024 to 2030
Segments Covered Solution, technology, end-use, function, region
Regional Scope North America, Europe, Asia Pacific, South America, MEA
Country scope US, Canada, Germany, UK, France, China, Japan, India, South Korea, Australia, Brazil, Mexico, KSA, UAE, and South Africa

Source: Grandviewresearch

How Artificial Intelligence Impacts Software Development

Integrating AI into software development streamlines companies’ workflows and improves efficiency. AI solutions also help development teams focus on strategic tasks, resulting in faster software product delivery.
Developers and other dedicated team members use AI algorithms to optimize workflows and gather data, assisting with code completion, bug detection, and predictive analytics. etc.


As we know, prototyping allows developers, designers, and stakeholders to validate ideas, identify potential issues, gather feedback early in the project lifecycle, and meet clients’ expectations. AI helps speed prototyping by generating initial code and design suggestions based on project requirements. Figma and Sketch are tools that use AI intelligent design recommendations to create rapid prototyping. As a result, you get validation of ideas and concepts in low-fidelity and high-fidelity prototypes, allowing the development team to focus on deployment and refining the product.


AI significantly enhances the debugging process by identifying and diagnosing errors more efficiently. Advanced debugging tools like Snyk use machine-learning algorithms to detect bugs and vulnerabilities. These tools can provide precise recommendations for fixing issues, reducing developers’ time on troubleshooting and improving overall code quality.

Code Refactoring

Implementing AI code refactoring tools to optimize and improve existing codebases without altering their functionality. Tools like Tabnine analyze patterns in existing code and suggest improvements. Automated code reviews ensure that code remains clean and efficient, facilitating more accessible future modifications and reducing technical debt.

Predictive Analysis and Project Management

AI’s predictive analytics capabilities allow for better project management and decision-making. AI models can forecast potential bottlenecks, resource requirements, and completion timelines by analyzing historical data and current project metrics. Tools like Jira integrate AI to provide insights that help teams plan and execute projects more effectively, minimizing risks and ensuring timely delivery.

Testing Automation

AI revolutionizes testing automation by creating intelligent testing scenarios. Tools like Applitools use machine learning to generate test cases, execute tests, and analyze results. This leads to more comprehensive testing coverage, faster defect detection, and higher-quality software releases.

Documentation Generation

Generative AI simplifies the documentation process and helps automatically generate documentation. Tools like Swimm use natural language processing (NLP) to create documentation that explains code functionality, usage, and integration points. Automated documentation ensures developers have up-to-date and easily understandable reference materials, enhancing collaboration and knowledge sharing.

AI and human developers in stages of software engineering

How AI in Software Development Process Contribute to Businesses

McKinsey’s latest 2023 survey results reveal shifts in the most frequently hired positions in organizations utilizing AI: data engineers, machine learning engineers, and AI data scientists. However, there has been a significant decrease in hiring AI-related software engineers.
Fewer respondents reported difficulties in hiring for positions such as AI data scientists, data engineers, and data visualization specialists. Nevertheless, the survey indicates that hiring machine learning engineers and AI product owners remains challenging.
AI-assisted software development enhance team performance
Source: McKinsey

Artificial Intelligence integration into the software development process offers businesses options that enhance productivity, efficiency, and outcome. To succeed in the modern business environment, applying AI technologies is becoming vital for companies aiming to maintain a competitive edge.

Accelerated Development Cycles

AI-powered tools streamline various tasks in the software development process. Automated code generation reduces developers’ time spent writing and debugging code, resulting in shorter development cycles. The outcome is evident: businesses bring products to market faster and answer more quickly to changing market needs.

Productive Project Management

Predictive analytics and intelligent resource allocation enhance project management. AI can analyze historical project data to predict potential bottlenecks and optimize resource distribution. Companies benefit from better planning, more efficient use of human and tech resources, and timely project delivery.

Cost Efficiency

Faster development cycles and improved code quality reduce the costs of fixing post-release issues and delays. AI frees developers from repetitive tasks, saving time and effort. Developers can dedicate more time to focusing on final product delivery on time and using advanced technologies.

Better Security and Compliance

AI improves security and compliance by automatically identifying and addressing vulnerabilities, as AI solutions help monitor code for potential threats. Compliance monitoring tools help businesses follow industry standards and regulations, reducing the risk of penalties.

Effective Maintenance, Updates, and Scalability

AI can predict maintenance needs and automate routine updates, ensuring that software remains functional. Predictive maintenance tools analyze usage patterns and system performance to forecast potential issues. AI also enables businesses to scale their software development efforts efficiently. Automated tools can handle increased workloads without a proportional increase in costs or time.

Competitive Advantage

Businesses gain a significant competitive advantage due to faster development cycles, improved product quality, and enhanced product deployment capabilities, which help them increase their market share.
Software development key opportunities for businesses

Will AI Replace Software Engineers?

There’s no need to even presume that AI can replace software developers. First, while AI perfectly automates repetitive tasks, it still needs a human touch of creativity and problem-solving abilities. Software engineering involves designing solutions to complex problems, addressing users’ needs, using new tools and techniques.
Secondly, AI depends on the data it is trained on. With the input of human engineers to train and fine-tune these systems, AI can function more effectively. So, AI is more likely to become a tool software engineers use to increase their productivity and efficiency.
Yes, AI will continue to evolve, providing more advanced tools that enhance productivity and innovation. However, human developers will remain essential for bringing creativity and strategic thinking into the projects. In fact, AI technologies encourage developers to engage in continuous learning to stay relevant.

Lasoft as a nearshore partner

Real-Case Studies With AI-powered Solutions

Let’s examine some real-world examples of how to integrate AI solutions into your existing infrastructure or digital products, such as platforms, apps, or marketplaces.

Age Line Platform

Age Line is an open-source platform designed to address the challenges an aging society faces. Age Line is a comprehensive user platform that assists seniors in finding their ideal living locations. It provides users with precise assessments of potential living sites, utilizing complex user reviews and average location ratings from leading evaluation platforms in the US.
In developing the Age Friendly platform, we integrated several AI and ML features to enhance functionality and user experience.

Optimized Image Selection:

We streamlined the process of selecting images of cities, by leveraging artificial intelligence. This optimization saved approximately 30,000 working hours, significantly reducing manual effort and increasing efficiency.

Automated City Profiles:

The platform automatically generates detailed city profiles, providing users with a comprehensive overview of their chosen locations.

Machine learning model desired output

HR Insights from Lasoft Team: Case Study on Using AI-Powered Solutions

In the Human Resources industry, predicting when an employee might leave the company can be precious. Having this information in advance allows HR managers to manage risks proactively and potentially retain valuable employees. Lasoft’s AI-powered solutions aim to meet this need by providing a comprehensive platform that covers all HR requirements, particularly in predicting employee flight risk.

Predictive Analytics for Employee Retention

We developed an AI system for our client that calculates an employee’s flight risk by analyzing various data points. These include employee demographics, performance metrics, compensation details, job history, and the industry’s current state. By processing this data, the system can inform HR managers and direct supervisors about employees at a high risk of leaving the company soon. This proactive approach can significantly improve retention rates and save recruitment, onboarding, and training costs.

Comprehensive Data Integration

Our system collects data from multiple sources to ensure a thorough analysis.

  • Employee demographics
  • Performance records
  • Compensation data
  • Job history
  • Industry trends

By integrating this data, the system can provide a holistic view of the factors influencing employee retention and turnover.

Clear and Accurate Reports

The system visualizes reports, making it easy for HR teams to understand and act upon the data. These reports include:
Correlation trends comparing actual company turnover rates with predicted flight risks over the past nine months.
Predictions of company flight risks based on historical data, helping HR teams anticipate future trends.

AI-powered machine learning models

Final Insights

Artificial Intelligence’s impact on software engineering is promising and somewhat daunting. For now, integrating AI into software engineering is a journey filled with opportunities, poised to redefine the boundaries of what software can achieve. This evolving tendency promises to elevate developers’ capabilities and push the industry’s innovation limits.


What is the Rise of AI in Software Development?

Artificial Intelligence in software development refers to the increasing integration of artificial intelligence technologies into the software development workflow. AI solutions help automate repetitive tasks and enhance coding accuracy. AI can assist in every stage of product development, including coding, testing, debugging, and deployment. The main advantage is that it speeds up the process of software development from idea validation to entering the market stage.

Will AI Replace Software Developers?

While AI is becoming increasingly popular, it can hardly completely replace software developers. For the moment, AI helps augment developers’ capabilities by automating repetitive tasks. It simplifies tasks like code generation, bug detection, and testing, enhancing productivity. However, human expertise in problem-solving and design thinking leads the development process, and AI is just one of the tools and techniques to invest in project results rather than replace human developers.

Are There Free AI Development Tools?

Yes, there are several free AI tools available for developers and researchers. Some popular free AI tools include: TensorFlow, Keras, Scikit-Learn, PyTorch, Google Colab.

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