TLDR: A recent study by OutSystems, in collaboration with CIO Dive and KPMG, reveals that the Asia-Pacific (APAC) region is leading the global charge in implementing agentic AI within the Software Development Life Cycle (SDLC). With 60% of APAC organizations adopting agentic AI, the region surpasses North America (50%) and Europe (40%). The study highlights a global trend of increasing AI investment, with 93% of organizations developing or planning to develop custom AI agents, driven by significant gains in developer productivity, software quality, and testing efficiency.
The Asia-Pacific (APAC) region has emerged as the frontrunner in the adoption of agentic Artificial Intelligence (AI) within the Software Development Life Cycle (SDLC), according to a new study titled ‘Navigating Agentic AI & Generative AI in Software Development: Human-Agent Collaboration is Here.’ Conducted by OutSystems in collaboration with CIO Dive and KPMG, the study surveyed 550 global software executives and found that 60% of APAC organizations are already implementing agentic AI, outpacing North America (50%) and Europe (40%).
The research underscores a significant global shift towards AI integration in software development, with a remarkable 93% of organizations worldwide either currently developing or planning to develop their custom AI agents. This widespread adoption is fueled by the tangible benefits observed by early adopters. Over two-thirds of respondents reported increased developer productivity and improved software quality, characterized by a reduction in bugs. Furthermore, 62% noted improved scalability of development efforts, and 60% experienced enhanced testing and quality assurance (QA) efficiency.
Michael Harper, Managing Director at KPMG LLP, commented on the trend, stating, ‘A lot of organizations started with pilots a year ago or even prior to that, but now they’re starting to see real efficiency gains in areas like code generation and application testing.’ This indicates a maturation of AI initiatives from experimental phases to delivering concrete operational improvements.
Within the APAC region, the most prevalent applications of agentic AI include code reviews and quality assurance, utilized by 67% of organizations, and the automation of internal business processes, adopted by 61%. The commitment to AI investment in APAC is robust, with 73% of organizations planning to increase their AI investments by 11% or more in the coming year. Notably, 78% of APAC respondents are actively building their custom AI agents, and two-thirds are creating bespoke AI solutions, demonstrating a strong inclination towards in-house development.
Looking ahead, the study projects a transformative future for the SDLC. Martin, a representative from the study, envisioned a scenario where ‘AI agents acting as highly specialised teams will continuously monitor business needs, identify opportunities, and proactively refine software solutions, allowing developers and business leaders to play a more creative role and focus on strategic priorities.’ This vision highlights the potential for AI to elevate human roles in software development, shifting focus from repetitive tasks to innovation and strategy.
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This report aligns with broader industry predictions, such as IDC’s forecast that by 2027, 45% of Asia/Pacific organizations will adopt performance-intensive infrastructure to accelerate insights for AI and analytics. IDC also noted in March 2025 that around 70% of Asia/Pacific organizations expect agentic AI to disrupt business models within the next 18 months, emphasizing its role in driving operational efficiencies, improving customer engagement, and enhancing decision-making.
