The State of AI in Software Engineering

AI-assisted coding has shifted from experimental to mainstream, promising faster development and improved code quality; however, the speed gains in code creation are often negated by underdeveloped downstream processes like testing, deployment, and security, a phenomenon termed the AI Velocity Paradox. A survey of 900 engineers and technical managers across the US, UK, France, and Germany reveals that while 63% of organizations report faster code delivery due to AI, only 43% have automated their continuous integration and build pipelines, leading to increased security risks, manual efforts, and potential cost overruns. Organizations are categorized into four quadrants based on their AI and automation maturity, with "Velocity Leaders" achieving balance by integrating AI across the entire software delivery lifecycle. The report suggests that to fully realize AI's potential, companies must focus on automating downstream processes, consolidating tools, and implementing AI-driven governance, transforming the speed achieved in coding into reliable and resilient software delivery.