Combining Low-Code and GenAI for App Delivery
There is no denying the profound impact of artificial intelligence (AI) on software delivery around the world. OutSystems and CIO Dive surveyed 555 software executives in North America, Europe, and Asia to learn how they’ve adopted AI, how they plan to use it in the future, and what challenges they want to overcome.
According to the OutSystems and CIO Dive report on the survey, almost all software executives plan to increase their use of AI across the SDLC in the coming years. However, strategies and adoption rates vary between regions. This blog explores the European approach to using AI in software development, and it compares it to those of North America and Asia.
Table of contents:
A methodical approach to adopting AI
While there is minimal variation between regions in terms of long-term AI strategy, European companies often favor a methodical approach compared to the rapid expansion preferred in other markets. The greater regulation around the use of artificial intelligence in Europe, and the fact that many companies have already been using AI technology for at least a few years could be some of the reasons why.
The study found that 63% of organizations in Europe source AI tools for software development and SDLC management from cloud service providers, compared to 77% in APAC and 71% in North America. This suggests that Europe is more reliant on regional vendors and proprietary solutions due to increasing investment in locally developed AI tools and services.
Particularly in the EU, there is also an increasing focus on digital sovereignty, where governments are encouraging the use of local technology vendors. European companies also use, on average, a broader range of distinct AI tools than companies in other regions, suggesting a higher willingness to experiment.
| Region | Sources AI tools for software development and SDLC management to cloud service providers | Typically use one to five distinct AI tools and services for software development and SDLC management. | Plans to increase their investments in AI for software development and SDLC management by more than 20%. | Currently use security vulnerability detection in application development and SDLC management. | Report that 10% to 20% of code in their final products is developed with the assistance of GenAI tools. |
|---|---|---|---|---|---|
|
Europe |
63% |
85% |
14% |
74% |
26% |
|
APAC |
77% |
64% |
31% |
65% |
10% |
|
US/Canada |
71% |
79% |
18% |
68% |
27% |
Planned investments in AI in the next two years
14% of European organizations plan to increase their investments in AI by over 20% in the next two years. This is lower than other regions, suggesting that Europe is closer to the peak of AI adoption for the near future. It also suggests a more cautious approach, perhaps due in part to increased regulation, such as the EU AI Act—the first of its kind.
How software executives in European countries are using AI
The study also revealed considerable regional variations in how software executives are actually using AI. European companies are considerably further ahead than those in North America and APAC in their adoption of AI for security vulnerability testing, which is well-established as one of the most popular use cases worldwide.
Europe has been slower to adopt AI in other use cases, however, such as application maintenance and operations, user experience prototyping and design, and coding assistance. Also, compared to the slower and more methodical approach favored in Europe, other regions have an edge on the adoption and use of generative AI in areas like code generation, user interface design, document generation, and code refactoring. However, European countries are almost as likely to adopt generative AI for coding as those in North America, outpacing APAC.
Barriers to adopting AI for software development in Europe
Barriers to more widespread adoption also vary between regions. All regions report data privacy and security concerns to be among the highest barriers to adoption. 39% of European companies are struggling with limited availability of skilled personnel. 23% name slow development processes as a roadblock, and 18% cite lack of scalability. Despite this, Europe anticipates far fewer job losses to AI, with 39% of executives expecting over 20% of roles to be eliminated, compared to 72% in APAC and 61% in North America.
The impact of AI on software development: Europe compared to the rest of the world
In terms of AI’s impact on software development, Europe sits between North America and APAC. For instance, 43% of European companies report that AI has reduced development time, compared to 38% in North America and 64% in APAC. This is likely down to the more rapid growth of artificial intelligence in Asian markets, while Europe and North America have a comparatively more established AI industry. Moreover, European companies are more focused on the role of AI in driving improved software quality and reducing errors and slightly less interested (about 4 percentage points lower than North America) in the cost-saving potential of AI.
It is clear that other regions tend to be more aggressive in adopting AI for rapid development and cost reduction and are relying heavily on cloud service providers to do so. By contrast, Europe is more cautious, prioritizing security and quality control and showing less urgency in scaling up their AI investments.
Get the full report for complete access to the 2024 OutSystems and CIO Dive survey
