Since the launch of ChatGPT the market for using generative AI (genAI) based on large language models (LLMs) has grown enormously. In this report Omdia examines the impact of this technology on AI assisted software development.

Summary

Catalyst

In the space of one year since the launch of ChatGPT in November 2022, the market and appetite for using generative artificial intelligence (GenAI) based on large language models (LLMs) have grown enormously. In this report, Omdia examines the impact of this technology on AI-assisted software development. This field has a history going back to the rise of machine learning (ML) in the last decade with a startup market in-code assistant tools, some open source, and some spinoffs from academia. As GenAI and LLM became available, some of these startups were able to adopt this technology while new players appeared on the market to capture the opportunity. AI is being used in software engineering for code generation, code assistant (pair programmer), testing and debugging, security inspecting, quality checking, and more.

Omdia view

The explosion of interest in LLMs reflects the high quality of the human-machine interfaces, knowledge, and expertise provided by these models. This step change in quality improvement has also impacted software development, especially when it was realized that ChatGPT could act as a code assistant. Notably, the application of AI to coding has been in the market for some years. For example, GitHub Copilot was first launched in October 2021, and Codex (its LLM) is based on OpenAI GPT-3.

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