According to GitLab's 2024 research, 78% of organizations will use artificial intelligence in their software development processes within the next two years — a dramatic shift that's already transforming how teams build and deliver software. The research also shows that the number of organizations actively using AI has jumped from 23% to 39% in the last year alone.
As software development teams race to integrate AI into their workflows, major shifts are emerging that will fundamentally change how we build software. From intelligent AI agents that adapt in real time to the rise of customized on-premises models, here are three ways AI will significantly alter software development.
The future of applications is intelligent, adaptive AI agents
While the first wave of AI in software development focused on reactive code assistants for code generation and completion, the future belongs to agentic AI. Intelligent, adaptable AI agents will surpass the limitations of traditional software. Rather than interacting with fixed interfaces and preset workflows, users will engage with AI agents that respond intuitively and learn over time.
These AI-powered agents will serve as the application, providing a more interactive and conversational experience. As AI agents can perform complex tasks, offer guidance, and learn from interactions in real time, agentic AI will lead to significantly more personalized and responsive applications, fundamentally reshaping how we use software.
AI assistants will evolve to become proactive collaborators
AI assistants are getting smarter, moving beyond reactive prompt-based interactions to proactive problem-solvers. As part of this evolution, AI-powered tools will become central hubs for development, anticipating developers’ needs and offering real-time suggestions for optimizing application performance, security, and maintenance. This new generation of AI assistants will tackle complex projects and tasks with little human interaction, accelerating the software development process. This shift will streamline the entire software development lifecycle, making it more accessible through a simple user interface.
The role of software developers will evolve alongside these advancements. AI will not replace human developers but will augment their capabilities, allowing them to focus on what they love most: solving complex technical problems. By automating routine tasks and providing expert guidance, AI assistants will empower developers to delve deeper into business problem-solving, continuously improve code quality, and explore new technologies and skills.
More companies will run customized models on-premises
In 2025, organizations will shift toward smaller and more specialized AI deployments. As open source models become more cost-effective and accessible, teams will increasingly opt to run customized versions within their own data centers. As a result, it will be cheaper, faster, and easier for organizations to host their own large language models and fine-tune them to their individual needs. Companies will find they can combine their data with existing models and tailor the customer experience at a fraction of today’s costs.
Meanwhile, increased compliance risks associated with AI will drive regulated industries — like financial institutions and government agencies — to deploy models in air-gapped environments for reduced latency and greater control over data privacy and security.
Conclusion
The future of software development is inextricably linked to AI. These technologies are transforming how software is created, delivered, and maintained. By embracing AI in all its forms — from generative AI to proactive AI assistants to fully autonomous AI agents — organizations can gain a competitive edge, improve efficiency, and deliver innovative solutions that meet customers’ evolving needs.
This transformation requires thoughtful preparation: strategic planning, investment in talent and infrastructure, and a commitment to continuous learning and adaptation. Organizations that successfully navigate this evolving landscape will be well-positioned to thrive in the digital age.
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Frequently asked questions
What is agentic AI, and how will it impact software development?
Agentic AI refers to AI systems that operate autonomously, learning from interactions and adapting in real time. Unlike traditional AI coding assistants that react to prompts, agentic AI acts proactively, streamlining software development by automating workflows, improving efficiency, and personalizing user experiences.
Why are companies moving toward self-hosted AI models?
Organizations are shifting toward self-hosted AI models to enhance data privacy, reduce costs, and customize AI solutions for their specific needs. With advancements in open-source AI, companies can fine-tune models in on-premises environments, ensuring compliance with regulations and improving performance while maintaining control over sensitive data.
How are AI-powered coding assistants evolving?
AI coding assistants are transitioning from reactive tools to proactive collaborators. Future AI assistants will anticipate developer needs, provide intelligent recommendations, automate complex tasks, and enhance software security, ultimately making software development more efficient and accessible.
What are the benefits of running AI models in on-premises environments?
Deploying AI models on-premises offers organizations greater control over data security, improved compliance with regulatory requirements, and reduced latency. This approach is particularly valuable for industries handling sensitive data, such as finance, healthcare, and government agencies.
How can organizations prepare for AI-driven software development in 2025?
To successfully adopt AI-driven development, companies should invest in AI infrastructure, upskill developers, implement responsible AI governance, and explore hybrid AI solutions that balance cloud and on-premises deployment. Staying informed about AI trends will help teams leverage AI for innovation and efficiency.
Key takeaways
- Artificial intelligence is already having a major impact on software development, enhancing code quality and efficiency by removing a wide range of tasks.
- Software developers will work alongside AI agents that will facilitate real-time problem solving, rapid optimization of application performance, and overall improvement in software quality, enabling developers to concentrate on strategic decision-making.
- Increased use of on-premises AI deployments, particularly in regulated industries, will give companies more control over data privacy and security, as well as the ability to customize their software according to individual needs.
