The Challenge of Software Factories in 2024-2025 and How to Prepare for AI

As we approach the era where AI integrates deeply into our daily operations, software factories face unprecedented challenges and opportunities. According to Jensen Huang, NVIDIA’s CEO, the programming language of the future will be English, allowing us to code simply by texting or speaking. While this may seem futuristic, McKinsey reports that AI already enables software engineers to develop code 35% to 45% faster, refactor 20% to 30% faster, and perform documentation 45% to 50% faster.

This advancement means adopting AI in the development lifecycle is no longer a competitive advantage but a necessity. Every software factory will confront the capacity versus growth dilemma. If your team can perform at twice its capacity, your sales should grow proportionally, or cutbacks will eventually loom.

Here are four areas to focus on to better perform in the AI era:

1. Incorporate AI in Your Development Lifecycle

The mindset of “I can do it faster” is no longer viable. Developers must incorporate AI tools across the entire development lifecycle, from backlog definition to QA. AI integration at every step is crucial to stay competitive.

AI is no longer a competitive advantage; it is a requirement.

2. Incorporate AI in Your Client Operations

Identify AI opportunities within your clients' operations. Generative AI is here to stay but might not yet be part of everyday operations. Introducing AI in a secure and controlled manner can help clients leverage these technologies. Often, clients may need guidance to recognize AI opportunities.

Be a consultant prepared to incorporate AI in the operation.

3. Adopt a Technical Futuristic Vision

Reflecting on my time as a computer science student, a professor once advised designing solutions as if we had 10x or 1000x the current infrastructure capacity. Today, AI capabilities grow exponentially, and we often see changes within months. This futuristic thinking is required in each strategic decision.

Understand the possibilities of AI and make decisions with a futuristic vision.

4. Incorporate AI in Every Creative Process

Generative AI’s disruption is most evident in its creative capabilities. Creative teams that integrate AI into their processes will enhance performance and scope, producing remarkable outcomes with less effort and cost. Whether writing emails, evaluating product photos, or creating music and videos, AI can significantly boost creative processes.

Get help from AI to boost your creative process.

To conclude, by adopting these strategies, software factories can not only remain competitive but also thrive in the evolving software industry landscape. Let's embrace AI to prepare for the future.

Did you adapt AI in the development lifecycle?

What about your operations?

And in your creative processes?