Generative AI

Software engineering and business applications in transition.

The transformative power of generative AI is comparable to the impact of the public launch of the Internet in 1993, when the commercial usability of the World Wide Web abruptly changed all areas of life. With the launch of ChatGPT and the rapid availability of further large language models (=LLM) and AI applications in 2023, we have very likely reached a comparable turning point in human history. Within just one year, the active use of artificial intelligence has become possible and useful for all computer users, regardless of their technical skills.

The advances in machine language processing have been received overwhelmingly positively in society, as every ChatGPT user has been able to immediately recognize their own potential productivity benefits. Although massive cost savings can be expected in many industries and fields of activity, these are not the focus of the current discourse on the future. The focus is on the automation of repetitive activities, which promises to free up time for innovation and strategy work and enable sustainability initiatives that have so far been neglected in most operational business. Digital acceleration enables companies to gain resources and tap into completely new business potential. The creativity and willingness to learn of each individual will be key factors in shaping the age of artificial intelligence and using it to their own advantage.

We assume that software engineers will create a new world of work and business together with business users. This is because the hoped-for democratization of artificial intelligence will simplify and promote systemic collaboration. At the same time, the fields of activity in both areas will change fundamentally. Due to their affinity for technology and tools, software engineers will probably realign their working methods and processes faster, more radically and with more joy. Just as agile frameworks from software development have found their way into the corporate world, software engineers could also become pioneers and role models of a profound process change.

This trend report is an attempt to determine the current status of generative artificial intelligence in the field of software engineering and beyond. Already today, the productivity gains from the use of generative AI tools along the entire software engineering lifecycle are considerable and can contribute to faster results. However, in addition to the opportunities, the more generative AI can and should contribute to complex product developments, the more risks need to be recognized and taken into account, such as the loss of traceability. In general, we believe it is important to demystify the topic, as it affects not only a group of experts, but the entire (working) society.

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