Partner Blog | How software development companies are paving the way for AI transformation

Artificial Intelligence (AI) is no longer a futuristic concept; it is a transformative force that is reshaping industries and redefining the future of software development. As AI continues to evolve, ISVs—as well as companies that develop software—are at the forefront of this revolution, leveraging AI to drive innovation, enhance productivity, and create the next generation of intelligent applications and solutions.  

Microsoft, with its extensive resources and deep domain knowledge, is playing a pivotal role in enabling software development companies (SDCs) to harness the power of AI and shape the future of software development. A recent report published by Microsoft provides comprehensive insights into the state of generative AI (GenAI) for business leaders, detailing its immediate impact, future potential, and best practices for implementation. The report highlights how partners that develop software leveraging Microsoft Copilot, Microsoft Azure AI Foundry, and Azure OpenAI Service are achieving faster innovation cycles, greater operational efficiency, and new revenue streams. 

The AI Decision Brief details how Microsoft software development partners have already seen significant benefits from the adoption of generative AI technologies: 

• Accelerating development cycles: AI-powered tools help developers code up to 55% faster, debug more efficiently, and automate repetitive tasks. For example, GitHub Copilot users complete coding tasks 46% faster on average, enabling teams to ship software more quickly and focus on innovation. 
• Enhancing product innovation: AI enables companies to create smarter applications with predictive capabilities, personalized experiences, and dynamic automation. Dentsu, a multinational media company, used Microsoft Azure AI Foundry and Azure OpenAI Service to develop an AI-powered predictive analytics tool that reduced media planning time by 90%. The ability to analyze vast datasets and generate insights in real time is transforming industries.
• Driving operational efficiency: Generative AI is cutting operational costs by up to 30% for businesses leveraging automation. Easton, a global leader in intelligent power management, streamlined the creation of 1,000 standard operating procedures (SOPs) using Microsoft 365 Copilot, reducing the time required per SOP from one hour to just 10 minutes—an 83% efficiency improvement. 
• Expanding customer impact: AI-powered applications are increasing customer engagement and satisfaction by delivering more personalized, responsive, and intelligent experiences. Properstar, a real estate technology company, leveraged generative AI to analyze unstructured real estate data and provide advanced filtering and search capabilities, helping customers find the perfect property faster and with greater accuracy.

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