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New research indicates that 93% of software executives are planning to develop or are already developing custom AI agents within their organisations, reflecting a significant shift towards agentic AI adoption across the industry.
The report, titled Navigating Agentic AI & Generative AI in Software Development: Human-Agent Collaboration is Here, was commissioned by OutSystems in partnership with CIO Dive and KPMG. Surveying 550 global software executives, it explores how artificial intelligence is affecting the software development lifecycle (SDLC) and the workplace at large.
AI changing software development
With technology budgets scrutinised and outcomes under pressure, IT leaders are increasingly turning to agentic AI to address operational hurdles such as fragmented toolsets and siloed data. Businesses are reporting that agentic AI enables them to automate key workflows, offer more personalised digital services, and innovate rapidly – all while maintaining compliance, security, and governance standards.
Woodson Martin, Chief Executive Officer of OutSystems, commented,
“The software development lifecycle is undergoing a significant transformation as organizations increase AI investments to maintain their competitive edge. Blending AI with development tools enables IT leaders to manage this shift effectively and securely. In a near future, AI agents acting as highly specialized teams will continuously monitor business needs, identify opportunities, and proactively refine software solutions, allowing developers and business leaders to play a more creative role and focus on strategic priorities. This report underscores how AI advancements are reshaping traditional roles and unlocking opportunities for innovation and collaboration between humans and technology.”
Survey respondents highlighted concrete results from AI adoption: more than two thirds reported increased developer productivity and higher-quality software with fewer bugs. Additionally, 62% noted improved scalability in development, while 60% cited greater efficiency in testing and quality assurance (QA).
Impacts on the workforce
The report projects that experimentation with agentic AI and its uptake over the next 24 months will drive organisational change. According to the survey, 69% of software executives expect AI to introduce new, more specialised roles – including oversight, governance, prompt engineering, agent architecture, and agent orchestration – to adapt to AI’s evolving function within companies.
Furthermore, 63% of respondents said AI will require considerable upskilling or reskilling of existing teams to meet the skills needed in this new landscape.
Where AI is being used
Almost half (46%) of executives report their organisations already integrate agentic AI into workflows, with a further 28% in the piloting stage. The most anticipated area for AI agent deployment is customer support, with 49% planning to use AI agents to handle customer inquiries and support functions autonomously.
The focus on customer service exceeds other domains such as product development (38%), sales and marketing (32%), supply chain management (28%), human resources (24%), and finance and accounting (23%).
Drivers and risks associated with AI
The primary goals for AI adoption, as expressed by over half the respondents, include improving customer experience (56%), automating repetitive tasks (55%), accelerating software development (54%), and advancing broader digital transformation objectives (53%).
However, the report also identifies significant challenges. 64% of software executives cited risks around governance, security, and compliance with widespread AI adoption. An equal proportion expressed concerns regarding transparency and reliability of AI decisions.
The proliferation of disparate AI tools has led to new issues with oversight and increasing technical debt, with 44% identifying AI sprawl as a growing risk. Addressing these burdens will be critical in ensuring AI’s long-term value for business.
Building confidence in AI tools
Michael Harper, Managing Director at KPMG LLP, noted,
“A lot of organizations started with pilots a year ago or even prior to that, but now they’re starting to see real efficiency gains in areas like code generation and application testing. Those activities are giving organizations more confidence in using these tools and helping them to move forward.”
The survey covered executives from a range of industries and geographies, including IT consultancy, manufacturing, banking, financial services, and insurance, with data collected across the United States, United Kingdom, Japan, France, Canada, Australia, India, and Germany.
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