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AI Reshaping Software Development with Automation and Cost Efficiency

Software

Business Honor
24 March, 2025

Companies leverage AI to enhance productivity, optimize costs, and streamline workflows.

In 2025, organizations that have already started adopting AI into their software development lifecycle will begin experiencing a return on investment. Consequently, companies will further develop their AI strategies to make their processes more efficient and improve productivity.

A recent study by GitLab discovered that 78% of organizations either apply AI in their development workflows or intend to do so within the next two years. Early on, AI adoption was limited to experimental and non-critical projects, but this year, top organizations will broaden their AI initiatives to enhance engineering workflows and incorporate AI-driven automation into the entire software supply chain.

One of the most substantial impact areas will be platform engineering. AI efficiencies will make software release processes less frictional by integrating training, policy, and best practice into code. AI will allow platform engineers to develop reusable building blocks so that non-technical users can construct delivery pipelines using low-code methods for testing, environment management, and release orchestration.

Moreover, AI agents will transform software supply chains. AI tools will optimize and automate core processes, ranging from continuous integration to continuous deployment. Open-source ecosystems will first witness mass adoption of AI across them, which will give rise to AI agents that automate software management. Automation will increasingly get into AI-based commercial business solutions, changing in-house development processes as benefits accrue to organizations.

Data governance and cloud cost optimization will be two other key trends in 2025. With cloud spend and operating efficiency as the focal points, companies will be ROI-driven. The maturation of FinOps, a shared platform that integrates engineering, product, and finance teams, would enable businesses to analyze costs and find new ways of enhancing efficiency. The change might speed up on-premises or hybrid migration, especially if cloud-native modernization gets more costly and complex.

By next year, the leading organizations will re-imagine application development, increase productivity, and reduce costs with strategic AI.