OutSystems, a leading AI-powered low-code platform, released its 2025 report, Navigating Agentic AI & Generative AI in Software Development: Human-Agent Collaboration is Here, in collaboration with CIO Dive and KPMG. The study, surveying 550 global software executives, highlights that 93% of organizations are developing or planning custom AI agents, signaling a shift toward autonomous, AI-driven software development and workforce transformation.
93% of software executives plan to develop custom AI agents by 2027.
46% of organizations already integrate agentic AI; 28% are piloting.
69% expect new roles like agent architects and prompt engineers.
62% report improved scalability; 60% see enhanced testing efficiency.
Customer service (49%) leads AI agent use cases, followed by product development (38%).
Key challenges: governance (64%), transparency (64%), and AI sprawl (44%).
The report reveals that 46% of organizations are actively integrating agentic AI into applications, with 28% in pilot phases. These AI agents, capable of autonomous decision-making, are transforming the software development lifecycle (SDLC) by automating complex processes. “The software development lifecycle is undergoing a significant transformation,” said Woodson Martin, CEO of OutSystems. “Blending AI with development tools enables IT leaders to manage this shift effectively and securely.”
Over two-thirds of respondents reported increased developer productivity and fewer bugs due to AI integration. Additionally, 62% noted improved scalability, and 60% highlighted gains in testing and quality assurance efficiency. AI agents enable developers to focus on strategic tasks, reducing repetitive work and fostering collaboration with business leaders to solve complex challenges.
The rise of agentic AI is reshaping workforce dynamics, with 69% of executives anticipating new roles such as agent architects, prompt engineers, and governance specialists. Additionally, 63% emphasized the need for upskilling to integrate AI effectively. “AI isn’t replacing developers—it’s handling the grunt work,” said the report, noting that developers are shifting toward creative and leadership roles.
Customer service is the top focus for AI agent deployment, with 49% of executives prioritizing autonomous handling of inquiries. Other areas include product development (38%), sales and marketing (32%), supply chain (28%), human resources (24%), and finance (23%). This reflects a drive to enhance customer experiences and scale operations efficiently.
Despite the benefits, 64% of executives cited governance, security, and compliance as major hurdles, alongside concerns about transparency in AI decisions. Additionally, 44% highlighted AI sprawl and technical debt as risks. “A lot of organizations started with pilots a year ago, but now they’re seeing real efficiency gains,” said Michael Harper, Managing Director at KPMG LLP, emphasizing the need for robust governance frameworks.
Executives are prioritizing AI to improve customer experience (56%), automate repetitive tasks (55%), expedite development timelines (54%), and accelerate digital transformation (53%). The report underscores that agentic AI, combined with low-code platforms like OutSystems, enables organizations to deliver applications up to 10x faster, reducing technical debt and enhancing agility.
OutSystems’ 2025 report highlights the transformative potential of agentic AI in software development, with 93% of executives poised to adopt custom AI agents by 2027. By addressing governance challenges and fostering human-agent collaboration, organizations can unlock innovation, scalability, and competitive advantage in an AI-first future.
OutSystems is a leading AI-powered low-code development platform, empowering IT leaders with a better way to build the software that matters most. The OutSystems platform helps companies develop, deploy, and maintain mission-critical applications by unifying and automating the entire software lifecycle. With OutSystems, organizations leverage gen AI to deliver software instantaneously, adapt faster to changing requirements, and reduce technical debt by building on a future-proof platform. Helping customers achieve their business goals by addressing key strategic initiatives, OutSystems delivers production software up to 10x faster than traditional development.
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