Something remarkable is happening in software engineering. Developers equipped with AI coding tools are not just speeding up their work—they’re transforming the way we think about software.
Daily AI tool usage surged from 47% to 77% over the past year, reflecting an increasing reliance on AI to streamline tasks.
Notably, developers reporting six or more hours saved weekly rose from 11% to over 50%, and those saving ten or more hours per week increased from 4% to 26%. This data underscores AI's growing role in optimizing development and delivering tangible time savings.
Over 26% of developers report saving more than ten hours weekly, while nearly 25% save between six to ten hours. Additionally, 50% save between two to five hours each week, and just under 24% save fewer than two hours. Importantly, no respondents reported that AI tools failed to save them time, illustrating the widespread efficiency gains achieved with AI integration.
Daily use of AI coding tools has increased strikingly, with 99% of respondents expecting to expand their AI usage, and up to 77% of developers use AI tools daily now. These figures highlight a clear upward trend in AI adoption, positioning AI as an essential tool in developers' workflows.
At first glance, it seems logical to assume that a sharp increase in productivity would reduce the need for resources, such as developers since the same amount of work can be achieved with fewer people.
However, we believe the opposite will occur: as software becomes more affordable, the demand for software products will grow as it will be cheaper than ever to produce. This pattern, known as Jevons Paradox, has a historical precedent: when steam engines became more fuel-efficient in the 19th century, coal consumption didn’t decrease. Instead, it soared as cheaper and more efficient engines drove expanded use across industries.
proxify.io / 2024 / AI use in development: Jevons Paradox
We’re already seeing a similar trend among our clients. As development processes become faster and more cost-effective, clients are increasing their investment in custom software solutions rather than reducing it.At Proxify, this trend will continue, leading to a greater demand for innovative, tailored software.
Additionally, we foresee a shift in the developer’s role. The ability to bridge complex business needs with technical solutions—traditionally a product manager’s skill set—will become even more essential. Developers who can translate nuanced business challenges into effective software will be invaluable in this evolving landscape.
Companies today invest heavily in SaaS software –
up to $11,200 per employee annually.
While SaaS solutions offer quick deployment and low upfront costs, they rarely effectively meet specific
business needs as custom software.
Custom software often outperforms SaaS because it's tailored to specific business needs. While SaaS platforms with AI offer general-purpose tools, they can lack customization, flexibility, and scalability as businesses grow.
Think about it: was that support center software truly delivering a seamless experience for your customers? Did your CRM genuinely adapt to the needs of your sales team, or were you constantly adjusting to its limitations? Were you able to drive adoption for the dashboard you built, or did frustrations arise from the lack of real-time data and limited customization options? And that eCommerce platform you launched—was it equipped to handle complex pricing rules, personalized product recommendations, dynamic bundling, and a customized checkout flow?
Forward-thinking companies like Klarna understand this. They chose to build custom solutions to replace software like Salesforce and Workday. While Klarna is on the far end of the spectrum, our own journey at Proxify demonstrates the impact of custom software. We wouldn't have scaled to where we are today without our custom-built tools—from an applicant tracking system to an AI-powered matching platform that enables unique matches in minutes, a task that would take human teams days, if not months, to accomplish.
With AI automating many routine tasks, our assumption is that developers' roles will evolve beyond coding into strategic and creative functions. They will be increasingly recognized for their unique contributions – creativity, intuition, and problem-solving. Their work remains essential as they translate complex business needs into functional, scalable solutions, giving organizations a competitive edge in the digital landscape. While AI boosts productivity, the human element in development – adaptability, innovation, and collaboration – remains irreplaceable. Developers will be technology builders and enablers of progress, pushing the boundaries of what technology can achieve.
AI-driven development tools are leveling the playing field, allowing businesses of all sizes to innovate like never before. What was once exclusive to large enterprises is now accessible to startups and mid-sized companies, enabling faster, more tailored solutions. This shift isn't just about more software – it's about creating relevant, high-quality applications that align with unique business needs. With custom software now within reach, companies can continuously innovate, iterate quickly, and adapt to changing market demands, moving beyond the limitations of generic, off-the-shelf solutions.
AI-driven development tools have made custom software more accessible, empowering developers to move beyond routine tasks and focus on innovative, high-impact work. By automating repetitive tasks, AI frees up time for developers to optimize systems, design unique features, and address strategic challenges—enhancing both their role and the software's effectiveness. This shift boosts developer productivity and gives businesses a competitive edge by fostering continuous improvement and rapid adaptation.
As AI reshapes development, the decision between building custom software and purchasing off-the-shelf solutions has become more critical. Off-the-shelf SaaS products offer fast, cost-effective solutions but can lack the flexibility and customization that evolving businesses need. Custom software, however, enables companies to tailor solutions precisely to their workflows, unlocking greater adaptability, scalability, and alignment with business goals.
Build custom software if your business has unique workflows, scalability requirements, or specific challenges that generic solutions cannot address. Custom solutions offer flexibility, greater control, and better integration with your existing systems.
Buy off-the-shelf if you need quick deployment, lower upfront costs, and if the software’s generic capabilities align closely with your needs. SaaS solutions are often ideal for standardized processes that do not require extensive customization.
Our survey included developers from various industries and with various levels of experience. Here’s a breakdown:
Daily use of AI coding tools increased from 47% to 77% in one year.
Time savings of six or more hours per week increased from 11% to over 50%.
Time savings of over ten hours per week increased from 4% to 26%.
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