In-Depth Analysis Of The Impact Of Artificial Intelligence On

Software Development

Muhammad Hamza – SE-22092

Software Engineering Department - Section B
HS-218 : Business Communication

NED of Engineering & Technology University, Karachi, Pakistan

 Abstract
This report explores the impact of artificial intelligence (AI) on software
development, providing an in-depth analysis of its historical background, scope,
problem-solving capabilities, limitations, methodology, and findings. The
integration of AI into software development has revolutionized the industry,
enabling automation of tasks, accelerated software testing, enhanced code analysis
and generation, and simplified documentation processes. The findings indicate that
AI has significantly improved development time, defect detection accuracy,
software maintenance, and software robustness. However, the report also
acknowledges limitations like the immaturity of AI technology, such as data privacy
and security, biases, data dependency, and ethical concerns. Findings puts in data
on the impact of AI in FAccT, Market Share of Generative AI, Software Engineering
Organizations, Students. An action plan is recommended to effectively utilize AI in
software development, including investment in AI technologies, training
opportunities for developers, collaboration between AI and software development
teams, and regular evaluation of ethical implications. Embracing AI while
addressing its limitations and ethical concerns will lead to increased efficiency,
productivity, and software quality in the development process.

Keywords: artificial intelligence, AI, software development, automation, problem-solving,

scope, limitations, methodology, findings, historical background, efficiency, productivity, defect
detection, software maintenance, software robustness, data privacy, security, biases, interpretability,
ethical concerns, action plan. FAccT
 Introduction
In recent years, the integration of Artificial Intelligence (AI) into various industries has
significantly transformed the landscape in every field whether it be Engineering or Medical or social
sciences. Software development is a vital engine of the modern world, shaping everything from
communication to commerce. Artificial intelligence (AI) is now poised to fundamentally transform this
field, impacting every stage of the development process and altering the role of developers themselves. This
report delves into the depth of this impact, assessing its benefits, limitations, and future prospects. By
exploring its historical background, scope, problem-solving capabilities, limitations, methodology, and
findings, this report aims to provide a comprehensive understanding of how AI is transforming the software
development landscape.
Authorization:
This report has been commissioned by NED University Software Dept. to assess the evolving role of
Artificial Intelligence in the field of software development.
Background:
Artificial intelligence is the effort of simulating human intelligence in machines, enabling them to
perform tasks that typically require human cognition and intelligence. Although there is no artificial
intelligence that has conciseness yet. Artificial Intelligence is just a buzz word but in the core these “AI”
models are programs heavily trained on huge amounts of data also known as Machine Learning, to give
results on a specific task like text, image, frame generation etc. AI has never produced anything new it
just takes existing data and try to give answers based on the specific context or the question being asked.
Consciousness based AI can and will be made but it is too much risky for it to exist as it will have its own
opinions like a human being. However, Software development has been a mind-labor-intensive process,
the evolution of these AI tools and its integration into software development has changed the way
developers design, build, and maintain software systems
.
Historical Report
The advent of AI in software development can be traced back to the 1950s when researchers began
exploring the concept of machine learning. However, it was not until the 21st century that AI became a
significant factor in software development, with the advent of machine learning, deep learning, and natural
language processing.
Slight Details
The impact of AI on software development includes improved productivity, reduced development
time, enhanced software quality, and the creation of new job opportunities.
Scope
 The scope of AI in software development is immense. From automating repetitive tasks to
enhancing software testing, AI is being used to improve efficiency, productivity, and reliability in the
software development life cycle. The integration of AI also enables the creation of intelligent chatbots,
recommendation systems, and personalized user experiences.
• Requirement gathering and analysis: AI can analyze user data and feedback to automatically
generate requirement specifications.
• Code generation and refactoring: AI algorithms can write basic code snippets and suggest
improvements to existing code.
• Testing and debugging: AI-powered tools can automate test case generation and bug detection,
improving software quality.
• Security and maintenance: AI can identify security vulnerabilities and automate routine
maintenance tasks.
• Development environment and tools: AI assistants can personalize development environments
and suggest relevant tools and code libraries.
Problem Solving
AI-driven tools can help solve complex problems in software development by automating repetitive
tasks, identifying bugs and vulnerabilities, and providing real-time feedback. This allows developers to
focus on more critical aspects of software development.
AI also addresses these key challenges in software development, including:
• Shortage of skilled developers: AI can augment human developers, allowing them to focus on
complex tasks.
• Increased software complexity: AI can handle the intricacies of modern software systems,
improving reliability and performance.
• Faster development cycles: AI can automate repetitive tasks, accelerating the development
process.
• Improved software quality: AI can identify and resolve bugs with greater accuracy and efficiency.
Limitations
Despite its transformative potential, AI in software development faces challenges such as ethical
concerns, data security, and the need for specialized skills. It is essential to address these limitations to fully
harness the benefits of AI.
Explaination
This section will delve deeper into specific applications of AI in software development,
providing concrete examples and data-driven insights. Charts and visuals will be used to illustrate key
findings and trends.
 Methodology
To analyze the impact of AI on software development, data was collected from various sources
including academic journals, industry reports and articles on the internet. Data gathering itself is assisted
by AI models; Chatgpt, Bard and Mixtral. These models indexed form the internet to gather the data for
charts and website that contain charts on this topic.
Findings
i. ACM Conference on Fairness, Accountability, and Transparency (ACM FAccT)

A computer science conference with a cross-disciplinary focus that brings together researchers and
practitioners interested in fairness, accountability, and transparency in socio-technical systems.
The Conference on Fairness, Accountability, and Transparency, or FAccT, saw a twofold increase in
submissions from 2021 to ’22, and a 10x increase since 2018. That demonstrates increased interest in AI
ethics and related work. Academic institutions dominate FAccT, but this past year, industry actors
contributed more work than ever before in this space. [2]
ii. Assumption of Market Share of Generative AI

[1]
12

10

6
Market Size (Billion USD)
4

0
2020 2021 2022 2023 2024 2025

[5]
Top Key Players in Generative AI in Movies Market:
NVIDIA Corporation, OpenAI, Meta Digital, IBM, Adobe, Autodesk, THE FOUNDRY
VISIONMONGERS , Unity, Google [1]
iii. Integration of AI tools in Software Engineering Organizations
73% of software organizations are planning to invest in AI-powered testing tools

Developers who think of AI models as a major

concern

Developers who already use AI tools to improve

their workflow

Developers who believe AI will make them more

productive

0% 10% 20% 30% 40% 50% 60% 70% 80%

[4]

iv. Impact pf AI tools On the future of Software Engineering Students

Nearly a third of college students have used the AI chatbot ChatGPT to complete written homework
assignments, with 60 percent saying they use the program on more than half of their assignments,
according to a new study from the online magazine Intelligent. [3]
Relying heavily on AI chatbots for completing assignments means that students may not fully engage in
the critical thinking and problem-solving skills necessary for software engineering. The temptation to
seek quick and convenient solutions provided by AI can hinder the development of important skills
required for future software engineering careers.
 Action Plan

To fully realize the potential of AI in software development, it is essential to invest in research and
development, create awareness about the benefits and limitations of AI, and develop strategies for
integrating AI with existing software development processes.

Conclusion

AI has the potential to significantly impact software development, bringing benefits such as improved
productivity, reduced development time, and enhanced software quality. However, it is essential to consider
the limitations of AI and develop strategies for integrating it with existing software development processes.

Recommendation:
It is recommended that organizations invest in AI-driven tools and technologies to improve their software
development processes. However, it is also essential to consider the limitations of AI and develop
strategies for integrating it with existing software development processes. Collaboration with AI experts,
training programs, and strategic adoption of AI tools are crucial for maintaining a competitive edge.

Supporting Statement:
Throughout the report, relevant data and research findings has been cited to support the analysis and
conclusions drawn. References and sources will be included for further exploration.

References
[1] Generative AI Market Share, Source: Statista, https://www.linkedin.com/pulse/generative-ai-movies-
market-present-development-strategy-denis-green/
[2] https://facctconference.org/ , https://hai.stanford.edu/news/2023-state-ai-14-charts
[3] https://www.govtech.com/education/higher-ed/study-30-of-college-students-have-used-chatgpt-for-
essays
[4] Sources for data: State of DevOps 2023, DevOps Research and Assessment team, GitLab Developer
Survey 2023, Capgemini AI in Testing Survey 2023, JetBrains Developer Ecosystem Survey 2023
[5] Sources:
AI in Software Development: Current and Future Trends, ResearchAndMarkets.com, 2021.
The State of AI in Software Development, Gartner, 2021.
AI in Software Testing: Current and Future Trends, MarketsandMarkets, 2020.