GenAI May Generate 20-40% Gains, No Risk To Tech Spends

New Delhi: Generative AI (GenAI) could generate savings of 20-40 per cent in the software de-velopment lifecycle, and savings from efficiency gains will likely be ploughed back into the busi-ness to chase more tech innovation, according to Axis Capital report.

Given that savings are expected to be infused back into innovative tech for better business, GenAI is unlikely to compress tech spending. “GenAI could generate savings of 20-40 per cent in the software development lifecycle.

Axis Capital’s institutional research sees no risk to tech spends with these savings being ploughed back into innovative tech for better business,” said the report titled ‘GenAI: Millennial Shapeshifter to Transform Services’.

Researchers from leading institutes who tracked productivity gains across about 5,000 developers in three organisations found AI boosted software developer productivity by 26 per cent. “Interest in and use of AI is growing rapidly – Microsoft GitHub Enterprise saw client interest in AI pro-jects grow 100 per cent in an 18-month period with actual use growing 11.5 per cent,” the report cited.