The global AI in software development market size is anticipated to reach USD 15,704.8 million by 2033 and is expected to expand at a CAGR of 42.3% from 2025 to 2033, according to a new report by Grand View Research, Inc. The market is experiencing a significant shift in how software is conceived, developed, and deployed.
At the core of this evolution is the growing demand for faster development cycles and increased productivity. As software systems become more complex, organizations are turning to AI-powered tools to automate tasks such as code generation, testing, debugging, and deployment. This automation reduces development time, improves code quality, and minimizes human error, enabling teams to focus on innovation and strategic problem-solving.
The emergence of AI-native development environments and hyper-automation frameworks also drives market growth. These platforms integrate AI deeply into the software lifecycle, enabling real-time decision-making, predictive analytics, and intelligent resource allocation. The proliferation of large language models and generative AI technologies has further amplified this trend, empowering developers to generate functional code, optimize performance, and even simulate user behavior with unprecedented accuracy.
Moreover, the widespread adoption of cloud computing and the rise of multi-cloud strategies have created fertile ground for AI integration. Cloud platforms offer scalable infrastructure and seamless access to AI capabilities, making it easier for organizations to embed intelligent features into their development pipelines. This synergy is particularly valuable in industries facing talent shortages, as AI helps bridge the gap by automating routine tasks and democratizing access to sophisticated development tools.
Download a free sample PDF of the AI In Software Development Market Intelligence Study, published by Grand View Research.
AI In Software Development Market Report Highlights
- By application, the code generation and auto-completion segment led the industry in 2024, accounting for over 31.9% of global revenue.
- By technology, the machine learning segment held the dominant position in the market and accounted for the leading revenue share of 36.7% in 2024.
- By deployment, the cloud segment led the market with revenue share in 2024 due to its increased automation and efficiency.
- By end use, the healthcare segment is expected to grow at the fastest CAGR of 52.7% from 2025 to 2033.
- North America dominated the global market with the largest revenue share of 42.1% in 2024.
- The U.S. led the North America market with the largest revenue share in 2024.
List of Key Players in the AI In Software Development Market
- IBM
- OpenAI
- NVIDIA Corporation
- Accenture
- Microsoft
- DataRobot, Inc.
- InData Labs
- Alphabet
- DataToBiz
- Neoteric
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