GCC Digital Transformation Drives Need for AI-Powered Software Development, Reveals New Globant and MIT Technology Review Report

Biz Bahrain

28-01-2025

Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, has partnered with MIT Technology Review Insights to create a new report titled 'Transforming Software Development with Generative AI.' The report explores the potential of generative AI in the software development lifecycle (SDLC) and highlights both the current state of adoption and future opportunities. The research draws insights from interviews with over 300 executives across diverse industries and global organizations. The findings reveal that generative AI has rich potential to revolutionize software development, but full adoption has yet to be reached. Early use cases of generative AI in the software development lifecycle go beyond code generation, including design, prototyping, requirement development, and testing. By democratizing AI, organizations are better equipped to unleash their creativity across every stage of the SDLC, improving teams' productivity and increasing collaboration. In this next phase of generative AI usage, company leaders see the most potential in finding additional ways to measure AI's impact and increasing the adoption of AI agents to succeed at more complex, multi-step tasks. 'As the GCC establishes itself as a global AI innovation hub, this research comes at a crucial time for regional organizations looking to accelerate their digital transformation initiatives,' said Federico Pienovi, CBO & CEO of New Markets at Globant. 'The research demonstrates how generative AI can be a game-changer for software development in the region, particularly as we see unprecedented investment in digital infrastructure and growing demand for innovative solutions.' GCC: Accelerating AI Adoption in Software Development The GCC region demonstrates market-leading readiness for AI-powered software development solutions, with an average adoption rate of 71% across the UAE and Saudi Arabia for weekly generative AI usage – significantly outpacing the global average of 55%. As the region's digital transformation market is projected to grow at 25.7% CAGR through 2030, organizations are increasingly looking to implement AI-driven development practices. Significant regional investment further supports this digital acceleration, with the region's IT spending expected to grow 7.4% to reach $230.7 billion by 2025. This rapid growth has driven Globant's increased focus on the GCC market, where the company has evolved from strategy to scale in implementing SDLC frameworks, emphasizing solving real user problems through AI-powered solutions that benefit society. These regional investments and initiatives align closely with the MIT report's insights on generative AI's multi-sector impact, particularly in early development stages where organizations see substantial development in the design and prototyping phases. Research Reveals Key Trends in AI-Powered Software Development The report highlights global trends and opportunities relevant to GCC's revolving technology landscape. These include: ● Generative AI is already meeting or exceeding expectations in the SDLC: 46% of survey respondents say generative AI is already meeting expectations, and 33% say it 'exceeds' or 'greatly exceeds' expectations. ● Generative AI adoption is exceptionally high in the earlier stages of the SDLC: 59% of respondents' organizations use it for ideation, 65% for design and prototyping, and 61% for code generation. However, organizations that use generative AI in more SDLC phases also report a more significant impact. ● Survey respondents expect AI will 'substantially' change the SDLC across most organizations within the next decade, with 38% putting that timeframe at one to three years, and another 31% believe it's coming in four to ten years.
These analyses present a compelling case for generative AI in software development. As organizations navigate their adoption journeys, embracing these innovations will be key to staying competitive in an increasingly digital landscape.