Will AI Agents Upend The Software Development Life Cycle?

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Will AI Agents Upend The Software Development Life Cycle?
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Agentic software development is a significant step up from chat-based code assistants, but it is an evolutionary rather than revolutionary change for the SDLC.

May 2025 will go down in history as the month when agentic software development was truly unleashed upon the world. A significant step up from chat-based code assistants, agentic software tools have been positioned as a revolutionary change in the software development life cycle. Announcements from Microsoft , Google , OpenAI and Anthropic are all very promising. However, my conclusion is that we are not witnessing a revolution, but are simply seeing a further evolution of AI automation.

But three fundamental AI shifts have led to the creation of these new agentic development tools, which significantly expand the AI benefit to developers.— The introduction of more powerful reasoning models provides developers with AI that spends more time gathering data and processing it to provide richer and more contextual responses. A developer can now ask an LLM to design the entire application — not just a single file — and receive a well-thought-out multi-page, multi-component plan.

I walked away from Build impressed with the technology Microsoft has available and also what is in preview. A great deal of my research over the past 12 months has been around the impact and possibilities of AI agents and agentic workflows. However, I also am not sure we have seen something revolutionary in the SDLC — at least not yet. To me,is introducing new efficiencies to the existing game, which is what I see happening so far in this space. Here are a couple of examples of what I mean.

So far, agent-based tools are more like the outsourcing trend — but that’s not necessarily bad. AI is still very new and moving very fast. Revolutionizing everything would likely overwhelm many enterprises, so embracing new tools to do existing work may just be the first step in what could ultimately be a revolutionary movement.

Moor Insights & Strategy provides or has provided paid services to technology companies, like all tech industry research and analyst firms. These services include research, analysis, advising, consulting, benchmarking, acquisition matchmaking and video and speaking sponsorships. Of the companies mentioned in this article, Moor Insights & Strategy currently has a paid business relationship with Google and Microsoft.

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