Innovation Watch: Generative AI Applications in Software Development 2025

Generative AI is fundamentally shifting how software is developed and maintained. What began as discrete copilots for code suggestions has evolved into a more mature and integrated layer of AI-powered software engineering. Generative AI is now embedded across the entire development value chain – from requirement gathering and prototyping to code generation, testing, documentation, and deployment – reshaping development workflows and enabling asynchronous, agent-assisted collaboration.

As enterprises move from experimentation to execution, generative AI solutions are expanding from point tools to full-stack development platforms, offering intelligent support for decision-making, team collaboration, and engineering governance. Increased investments in contextual intelligence, orchestration, explainability, and secure AI integration are driving this shift.

In this report, Everest Group assesses 21 leading generative AI solution providers across four segments: Luminaries, Fast Followers, Influencers, and Seekers, based on their market performance and ecosystem positioning. The report provides insights into how these providers are enabling practical value, improving software delivery speed, and redefining developer experiences in the age of generative AI.