How AI is transforming software development

The report describes the transition of developer tooling from first-generation autocomplete to agentic AI coding assistants (e.g., Claude Code, GitHub Copilot Workspace) that can plan, modify multi-file codebases, run tests, and generate pull requests. It highlights rapid adoption among developers, meaningful productivity gains for well-defined tasks, and cautions that complex architectural work still requires human judgment; vendor competition and platform roadmaps are expected to shape enterprise planning through 2026.