AI Code Generation Drives Developer Interest in AI

It’s no secret that AI remains at the top of buyers' minds in the B2B tech space. According to G2’s State of Software Report, AI-related categories saw the largest year-on-year (YoY) growth of all markets that G2 covers. 

One of the standouts? AI Code Generation. G2 predicted the formal adoption of AI in development last year, but AI Code Generation, in particular, has taken off rapidly in this space. What exactly is AI code generation software, and what may be causing the category to grow so quickly?

These tools draw from large data sets to generate code that adheres to best coding practices. Developers use AI code generation software to limit the effort and time it takes to complete repetitive coding tasks that would otherwise be done manually. 

AI code can revolutionize coding

By automating manual coding tasks, development teams can expedite the entire software development process. Instead of relying on developers to code every step of the process, the simpler coding tasks can be automated. It speeds up the entire process of development, allowing developers to aid with more specific coding tasks and challenges. 

This doesn’t benefit just the project—it’s a win for developers, too. They save time and energy that would have been spent on basic, time-consuming, manual tasks to refocus on high-level, complex challenges that the coding tool might not yet be able to solve. 

While the potential benefits of AI code generation software are intriguing, where does this technology stand in 2024? Is full adoption in development still wishful thinking, or are we approaching a code-generated future faster than many might think?

AI code generation is sparking interest

In G2’s latest State of Software, the research team explored some of the fastest-growing areas across technology markets, with a special focus on AI. What were some of the insights they found, and how do they relate to AI, development, and code generation? Do software development organizations see this as a fad, or are they actively trying to get into the race with their own code generation products?

Beyond a doubt, 2023 was monumental for all things AI. G2 saw a 38% YoY increase in addition to new products related to AI. While AI naturally takes the headlines here, many other areas saw an increase in the number of products added, such as development at a solid 11% YoY increase.

So, how does the growth of AI code generation compare to other AI tools in the industry?

Among all AI categories, AI code generation ranks third as the fastest-growing category based on products added, at an incredible 115% YoY increase. According to the numbers, this growth rate is faster than that of trendy AI tools such as AI writing assistants, text-to-speech, and AI agents. Given the large and growing audience in the AI coding community, this spike isn’t surprising.

The increase in the number of products represents the potential the code generation market holds. Despite being a relatively new space, companies are racing to get involved in what could become a major market. The code generation products that rise to the top will not only find financial success but could lead a revolution in the future of software development. 

AI code generation and the future of development

AI code generation represents the future of AI in the development space. As AI adoption continues to rise in development, automating repetitive tasks is only the beginning. The potential for more advanced applications is sky-high, and we're only scratching the surface of what's possible. Keep an eye on this space to learn about AI’s impact on code generation and other areas of software development.

Learn more about AI’s influence on coding and peer code review.

Edited by Monishka Agrawal